The future of downtown Seattle is in question as Amazon implements a new policy requiring employees to return to the office five days a week. This move comes after the tech giant’s previous three-day policy and signals a return to pre-COVID office work. With around 50,000 employees in Seattle, Amazon’s decision could set a trend for other companies looking to determine their own work policies. According to Gallup, most companies have settled into hybrid policies that allow for some remote work, making Amazon an outlier in the tech industry.
The impact of remote work has been felt acutely in downtown Seattle, where many tech companies are based. In November, the area saw a significant decrease in the number of workers compared to pre-pandemic levels. City leaders see the return of office workers as crucial to revitalizing downtown Seattle. Downtown Seattle Association President Jon Scholes anticipates Amazon’s move will lead more companies to adopt three or more days in the office per week, potentially accelerating a broader trend toward increased in-office presence. Amazon’s decision could also benefit surrounding small businesses that rely on worker foot traffic.
Increasing the number of office workers in downtown Seattle is not only important for revitalization but also for public safety, a priority for Mayor Bruce Harrell. Scholes believes that more people in public spaces will increase real and perceived safety downtown, which could have a positive impact on the overall atmosphere of the area. The Downtown Seattle Association’s year-end development guide focused on residential growth in the downtown area and highlighted the need for more foot traffic to support small businesses.
Office vacancy rates in downtown Seattle have reached over 30%, with some developers defaulting on office debt due to the high number of vacant spaces. Amazon has also given up a significant amount of office space in Seattle this year as they let leases expire and transition employees to nearby Bellevue. The shift in office space utilization is creating challenges for the commercial real estate market in Seattle, but some real estate developers are optimistic about the potential impact of Amazon’s return-to-office policy on the market.
Overall, Amazon’s decision to require employees to return to the office five days a week has significant implications for downtown Seattle and the broader tech industry. As the city’s largest employer, Amazon’s move could influence other companies to reevaluate their work policies and increase in-office presence. The return of office workers is seen as crucial for downtown revitalization and public safety, and the shift could have positive impacts on the area’s commercial real estate market and surrounding small businesses.
