In recent years, the corporate real estate landscape in the Seattle metropolitan area, particularly on the Eastside, has been shaped significantly by the strategic decisions of technology giants. Microsoft, a longtime anchor of the Redmond community, has undergone a notable shift in its office space strategy, moving from a period of contraction and subleasing to a renewed commitment to its physical campuses. This article delves into the specifics of Microsoft's recent office renewals in Redmond, the drivers behind this shift, the broader context of the Eastside real estate market, and the implications for the company and the local economy.
The Reversal of a Trend: From Contraction to Renewal
For years following the onset of the pandemic, Microsoft, like many of its tech peers, embraced remote and hybrid work models, leading to a significant reduction in its physical office footprint. This trend was particularly pronounced in Bellevue, where Microsoft was one of the last holdouts supporting remote work while competitors like Amazon and Meta enforced return-to-office (RTO) policies in 2023 and 2024. However, a major shift occurred when Microsoft announced it would require workers in the office at least three days per week starting February 23, 2025.
This policy change, which initially applied to employees living within 50 miles of a Microsoft office in the Puget Sound region but was intended to roll out to the rest of the company, marked a decisive move away from the company's previous hybrid work philosophy with little enforcement for in-office days. Amy Coleman, Microsoft's chief human resources officer, articulated the rationale in a September memo, stating, "We’ve looked at how our teams work best, and the data is clear: when people work together in person more often, they thrive — they are more energized, empowered, and they deliver stronger results."
This return-to-office policy has been a key driver behind Microsoft's recent real estate decisions. As a Microsoft spokesperson noted, the decision to reoccupy offices is based on various real estate strategies, with the RTO policy being a significant factor. This represents a reversal from the trend the tech giant had been on coming out of the pandemic, which included stunning Bellevue city leaders in 2023 by announcing it would vacate the 26-story City Center Plaza office tower the following year.
Specific Office Renewals and Reoccupations in Redmond
Microsoft's renewed commitment to physical office space is most evident in its recent lease renewals and reoccupations in its home city of Redmond. The company confirmed to The Seattle Times that it renewed the lease for its nearly 400,000-square-foot office at Redmond Town Center, a shopping complex that includes office buildings. A report from local brokerage Broderick Group listed this as the largest lease transaction on the Eastside for the final three months of 2025.
In addition to the Redmond Town Center renewal, Microsoft confirmed it is reoccupying 480,000 square feet of office space in the Millennium Corporate Park near downtown Redmond. This move confirmed rumors that had circulated in the real estate industry since last year, after Microsoft had pulled the property off the sublease market. The company had originally offered these offices for sublease in 2023, a clear indicator of its previous contraction strategy. The reoccupation of such a significant amount of space in Millennium Corporate Park is a substantial commitment to its Redmond campus.
These renewals do not represent the gains that the Eastside real estate market is hoping for amid a post-pandemic recovery, but they do keep two giant properties out of a saturated market. The decision to vacate 750,000 square feet of office space between The Bravern Towers in Bellevue was cited as the hardest hit to the Eastside market last year, according to Broderick Group. Therefore, the stabilization and reoccupation of large properties in Redmond are viewed as positive steps for market equilibrium.
The Broader Eastside Real Estate Market Context
Microsoft's real estate moves are occurring within a dynamic and competitive Eastside market. While Microsoft was shedding space in Bellevue, other companies were actively leasing. For instance, Amazon signed a 77,000-square-foot lease in Redmond Town Center toward the end of 2025, and e-commerce company eBay signed a 71,000-square-foot lease in Bellevue at the beginning of 2025. Furthermore, the artificial intelligence giant OpenAI snapped up several floors in downtown Bellevue that previously belonged to Microsoft.
The departure of Microsoft from Bellevue's top employers list left a hole that has since been filled by Amazon. Microsoft's workforce in Bellevue peaked in 2021 with about 9,300 employees, according to city financial reports. By 2023, the company was no longer in the top 10, with only a few floors held for its subsidiary, LinkedIn, which can accommodate about 120 employees. Microsoft has not commented on whether it plans to reoccupy space in Bellevue, indicating a strategic focus on consolidating its presence in Redmond.
Broderick Group noted that several lease transactions are close to the finish line in early 2026 as tenant demand continues to increase. This suggests that while Microsoft's renewals are significant, they are part of a broader market recovery where other companies are also expanding their physical footprints.
The Microsoft Redmond Campus Refresh Project
Parallel to its office lease renewals, Microsoft has been undertaking a massive modernization of its main Redmond campus. The Microsoft Redmond Campus Refresh is an investment for the community and the more than 47,000 employees that work on the campus. The project, scheduled to complete in 2023, is designed to create a modern campus that provides employees and the greater community a space to both gather and work.
Key features of the campus modernization include: - 17 new four- to five-story buildings, grouped into five villages. - Public amenities such as retail shops, restaurants, running and walking trails, sports facilities, and green spaces. - A pedestrian- and bicycle-friendly campus, with traffic routed along perimeter roads to underground parking. - A pedestrian and bicycle bridge over State Route 520 that will connect to the Sound Transit's Redmond Technology Center light rail station.
This campus refresh aligns with the company's return-to-office strategy by creating an attractive and functional environment that encourages in-person collaboration. The inclusion of public amenities and transit connections also reflects a commitment to integrating the campus into the broader Redmond community.
The Significance of the Redmond Address
Microsoft's corporate campus is fundamentally tied to the city of Redmond. Historical and mapping accounts place the campus within the Seattle metropolitan area, with longstanding expansions and infrastructure tied to State Route 520 and local transit access. The corporate address is often listed as "One Microsoft Way" or "1 Microsoft Way," with slight variations in formatting, such as "One Microsoft Way, Redmond, WA 98052‑6399" for investor mail. These are stylistic variants of the same corporate location rather than contradictory addresses. Commercial aggregators and mapping services index the campus under the same street name and ZIP codes, which is typical for large corporate complexes using a branded street address.
Public support and SEC filings reproduce a corporate phone contact for Microsoft tied to Redmond (425‑882‑8080), which aligns with the company’s corporate campus listing in official documents. While mapping tools and visitor guides note on-campus features and transport connections, specific visitor access policies and building numbers vary and are generally governed by Microsoft’s security and visitor procedures, which should be checked directly with the company for current rules.
Conclusion
Microsoft's recent office renewals in Redmond—specifically the renewal of its nearly 400,000-square-foot lease at Redmond Town Center and the reoccupation of 480,000 square feet in Millennium Corporate Park—signal a strategic reversal from its post-pandemic contraction phase. This shift is directly motivated by the company's new return-to-office policy, which mandates at least three days per week in the office for employees in the Puget Sound region. The decision reflects a belief in the value of in-person collaboration for productivity and innovation.
These moves are part of a broader real estate strategy that also includes the massive Redmond Campus Refresh, a modernization project aimed at creating a vibrant, integrated, and transit-accessible campus. While Microsoft has significantly reduced its footprint in Bellevue, its renewed commitment to Redmond helps stabilize a recovering Eastside office market. The company's focus on its home city underscores Redmond's enduring role as the heart of Microsoft's operations, with the "One Microsoft Way" address remaining synonymous with the tech giant's global identity and future direction.