Why Microsoft is reversing its office space exodus

Why Microsoft is reversing its office space exodus

By @byalexhalverson
Publication Date: 2026-01-09 14:00:00

After years of shedding office space, Microsoft is slowly reversing course as it calls workers back to the office.

The Redmond-based tech giant confirmed to The Seattle Times this week that it renewed the lease for its almost 400,000-square-foot office at Redmond Town Center, a shopping complex that includes office buildings. A report from local brokerage Broderick Group listed it as the largest lease transaction on the Eastside for the final three months of 2025.

Microsoft also said it’s reoccupying 480,000 square feet of office space in the Millennium Corporate Park near downtown Redmond, confirming rumors among the real estate industry from last year after the company pulled the listing. Microsoft offered the offices for sublease in 2023.

Microsoft was one of the last holdouts supporting remote work in the tech industry. As peers like Amazon and Meta enacted return-to-office policies in 2023 and 2024, Microsoft maintained a hybrid work philosophy with little enforcement for…