Despite initial signs of growth, Google’s expansion plans east of Seattle appear to be on pause, according to a report from real estate firm Broderick Group. The company has not built out space at a recently completed building in its Kirkland Urban campus and has paused construction plans on another building. Google opened its initial two buildings at Kirkland Urban in 2022 and had plans for four buildings totaling 760,000 square feet of space, with the final building set to be completed in 2025. However, the company has more than 400,000 square feet of unfinished space in Kirkland, according to Broderick.
Last year, Google backed out of plans for a 1.5 million square-foot project on land occupied by a Lee Johnson auto dealership near Kirkland Urban. Other companies in the Seattle region have also vacated offices or placed space on the sublease market, leading to a rise in vacancy rates with the adoption of hybrid work policies. However, companies like TikTok owner ByteDance and The Pokémon Company have signed large new leases in Bellevue, where Amazon is expanding and expects to employ 25,000 workers. Google laid off 12,000 workers in January 2023 and continues to trim its workforce, with over 200 open jobs in the Seattle region.
Despite Google’s current lack of growth plans in Kirkland, the company has been a significant presence in the Seattle region for nearly two decades. Google was one of the first tech firms to establish an engineering office in the area, followed by other global tech giants like Meta, eBay, and Apple. The region’s vast technical talent base has attracted over 100 tech firms to set up offices in Seattle, contributing to the city’s thriving tech ecosystem. Google currently employs more than 7,000 people in the Seattle area as of 2022 and has additional offices in Fremont and South Lake Union neighborhoods.
Broderick Group’s report revealed that Google has terminated a sublease with Salesforce-owned Tableau for 120,000 square feet of space at Kirkland Urban, which the company had initially viewed as a positive sign for future growth. However, Google has opted not to build out that space, adding to the existing 400,000 square feet of unfinished space in Kirkland. The company requires employees to be in the office three days per week, following a hybrid work policy. Kirkland Urban is also home to retail and dining establishments like Shake Shack and Topgolf, in addition to Google’s existing campuses in the area.
While Google’s growth plans in Kirkland may be on pause, the company remains a significant player in the Seattle region’s tech industry. Despite recent workforce reductions, Google continues to have a strong presence with over 200 open jobs in the area. Other tech companies like Amazon, ByteDance, and The Pokémon Company have been expanding in Bellevue, indicating ongoing growth in the region’s tech sector. Google’s initial investment in Kirkland paved the way for other tech firms to establish engineering offices in the Seattle area, contributing to the region’s reputation as a hub for technology and innovation. Google’s future plans in Kirkland and the broader Seattle area remain to be seen.
