Meta, Microsoft vacate office buildings in US over WFH and layoffs

As the tech sector goes through ‘soft market’ changes in the office leasing space, major companies such as Facebook parent Meta and Microsoft are separately vacating their buildings in Seattle and Bellevue in Washington, according to the Seattle Times.

A soft market is a phase in the economic cycle characterised by more sellers than buyers and low prices.

Facebook on Friday confirmed its plans to sublease its offices at the six-story Arbor Block 333 in downtown Seattle, and in the 11-story Block 6 of the Spring District in Bellevue, the Seattle Times reported. The social media giant is also reviewing leases for its other Seattle-area office buildings. 

The Seattle Times reported on the same day about Microsoft confirming reports that it will not renew its lease at the 26-story City Center Plaza in Bellevue when that lease ends in June 2024.

It also said the announcements come as the continued popularity of remote work and a tech slowdown with massive layoffs have both cut into demand for office space in Seattle and elsewhere.

Meta spokesperson Tracy Clayton told Seattle Times that the leasing decisions were primarily driven by the company’s move toward remote, or “distributed,” work. But he acknowledged that, “given the economic climate,” Meta was also “trying to be ... financially prudent”.

In November, Meta announced layoffs of 726 Seattle-area workers.