More and more tech giants are knocking on the doors of Seattle’s real-estate agents begging for office space with each passing week, it seems. Last week, Expedia announced that it would vacate its Bellevue offices and head to the Seattle waterfront in 2018. Crossing a much larger body of water could be China’s Alibaba, the world’s largest e-commerce company, which, as Geekwire reported last week, is considering Seattle as its U.S. homebase. Add Amazon’s ongoing office-space grab, and it’s clear that the industry is literally changing the shape of the city. Here’s how.
More people: As more tech moves in, Seattle should continue its streak as one of the fastest-growing cities in the U.S., which means things will only be getting cozier. So the upcoming migration of Expedia to the former Amgen Inc. campus (which it bought for a cool $228.9 million) begs a telling question. With 75 percent of its 3,000 employees currently living on the Eastside, will those workers move or drive? The former will squeeze a tight housing market, the latter will exacerbate our traffic problems. It’s enough to make you want to jump on the next plane outta here. Brought to you by Expedia.
More jobs: A study released last month by the Washington Technology Industry Association found that for each new techie hired here in Washington state, 2.7 jobs are added. Additionally, companies within the information and communication technology (ICT) sector paid $22 billion in wages in 2013. Not bad. “Despite the smaller stature as a startup ecosystem, the Washington ICT sector has been a consistent pioneer in the most successful new products and services,” the report says. “The region’s prowess in Cloud Computing and high density of ICT talent has attracted significant private investment.”
More expensive: More expensive. Last but definitely not least the tech takeover is making things more expensive. The residential and business rental markets have tightened as Amazonia has spread. And this won’t be ending anytime soon—Amazon announced last week that it would soon occupy another 817,000 square feet of office space in South Lake Union. According to the Zumper National Rent Report released last week, Seattle is the 10th most expensive city to rent in. Ironically, companies like Alibaba are said to be choosing Seattle to house their flagship because of cheaper rents. But with demand driven by more tech companies moving in and more high-paid tech workers following, how long can we stay “cheap”? Can the cranes build fast enough to keep up? Will that even matter? Stay tuned.
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