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Turner reboots construction on Amazon office tower

April 10, 2024
in Business
Turner reboots construction on Amazon office tower
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Dive Brief

Work will continue on the top 22 floors of the 1 million-square foot building, named 555 Tower, where Amazon paused its efforts in July 2022.

Published April 9, 2024

Sebastian Obando's headshot

Positioned at the heart of Bellevue’s central business district, 555 Tower stands taller than any existing building in Bellevue.

Positioned at the heart of Bellevue’s central business district, 555 Tower will be the city’s tallest building.

Courtesy of Vulcan Real Estate

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Dive Brief:

After a two-year hiatus, New York City-based Turner Construction will resume work on 555 Tower, a 42-story Amazon office tower in Bellevue, Washington, according to a recent announcement from the e-commerce giant.
Amazon had paused construction on five towers in the Bellevue area in July 2022, including 555 Tower, around the same time it pulled back on its warehouse development pipeline. CEO Andy Jassy said at the time changing work habits since the pandemic caused Amazon to reassess its office plans.
Now, almost two years later, the tech giant is once again betting on the office market, despite overall unstableness in the sector since the COVID-19 pandemic. Once complete later this year, 555 Tower will house more than 4,500 employees total, according to Amazon.

Dive Insight:

Positioned at the heart of Bellevue’s central business district, 555 Tower will stand taller than any existing building in the city. 

The project, spanning 1 million square feet, has already completed work through the 19th floor. However, construction remains to be completed on the remaining top 22 floors. 

That will bring online an additional 500,000 square feet of collaborative workspace in Bellevue, according to Amazon.

“Amazon’s continued investment in Bellevue is another show of confidence that our city is growing and open for business,” said Joe Fain, president and CEO of the Bellevue Chamber. “As the office market across the globe continues to show signs of post-pandemic strain, Bellevue is bucking the trend and breathing fresh life into its downtown.”

Unstable office market

Office construction has long been touted as a sector of concern for 2024. Value of office commercial real estate will likely plunge 26% by the end of next year, according to Moody’s Analytics.

For example, Jay Paul Co., a Bay Area real estate firm, recently delayed its massive tech campus project in San Jose, California, according to The Mercury News. That office, retail and restaurant complex hit pause on construction due to the region’s unstable office market.

Nevertheless, Amazon is renewing its bet on the Seattle area office market. The company praised Bellevue, a suburb of Seattle, for its business-friendly environment and deep talent-pool.

Since 2020, the tech giant has brought more than 12,000 jobs to the city and remains committed to its long-term plans to bring 25,000 total jobs to the area, according to a company release.

>>> Read full article>>>
Copyright for syndicated content belongs to the linked Source : ConstructionDive – https://www.constructiondive.com/news/turner-construction-amazon-office-tower-seattle/712729/

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