Some tech companies still believe in the office.
Australian software company Atlassian has signed a 64-month lease for 15,000 square feet of space in the Bellevue Skyline Tower across the lake from downtown Seattle, according to a press release.
“As a remote-first, Team Anywhere company, we believe you can work from home, at a coffee shop, on the beach, or in the office,” said Scott Farquhar, Atlassian co-founder and co-CEO.[B]Our data shows that by intentionally bringing teams together, it can enhance team bonding and productivity for up to five months. Our new Seattle office, combined with other coworking community options, ensures Atlassians can choose how they work, connect and collaborate every day. “
The firm chose Skyline Tower because of its proximity to public transportation, its ability to customize the space to suit its needs, and the building’s on-site management, according to a release.
It’s a relatively small lease that seats 93 and provides a service center for the nearly 200 company employees who live in the Seattle metro area.
But it also runs counter to popular narratives of tech companies fleeing for the hills (or at least away from office buildings) or forcing employees back into the office.
Leasing volumes from tech companies to fall sharply in Q4 2022, 57% drop Savills data, reported by Bisnow, showed improvements across the country compared to the previous quarter. The report noted that leased space was 2.2 million square feet in the fourth quarter, only a quarter of the 8.5 million square feet in the same period last year.
The industry has spent more than a decade on office leasing. That leadership shifted in the second half of last year as economic headwinds for businesses sparked a wave of layoffs at major companies, reducing demand for office space.
Twitter, for example, canceled leases in Boston, Singapore and other cities after Elon Musk took over the company.
Musk also gave a noncommittal answer as to whether the company’s headquarters will remain in San Francisco.
Twitter leased 463,000 square feet of space on eight floors at 1355 Market Street, which is owned by San Francisco-based Shorenstein. lawsuit filed by landlord in january For non-payment of rent.
Shorenstein said Twitter failed to pay $3.36 million in rent for the final month of December 2022 and $3.49 million in rent for January, the lawsuit said. The landlord of an Oakland skyscraper is also suing Twitter for nearly $1.3 million in unpaid rent.
Atlassian says it takes a different approach, looking at metrics like cost, occupancy and usage to help make real estate decisions.
“For example, when we learned that 50 percent of our employees working in our New York office were flying in from out of town to spend face-to-face time with teammates, we added a 65-person Intent Together space to allow teams to connect better.” Annie Dean, head of Atlassian Team Anywhere, said in a press release.
