Microsoft Plans for 2M-SF HQ Expansion

REDMOND, WA-Microsoft Corp. is planning two million sf of new development and renovation at its headquarters campus over the next 10 to 20 years, according to a proposed development agreement submitted to city officials this week. As part of the would-be agreement, Microsoft would support the growth with up to $30 million in local transportation and infrastructure improvements.With eight million sf built already, the Microsoft campus is one of the largest in the world. Design of the first new building is slated to begin this year, with occupancy scheduled for 2007. It will be located near our six original buildings on the Redmond campus. Little else is set in stone. “The development agreement we’ve submitted today doesn’t include a detailed list [or timeline] of new buildings, renovations or locations,” states Microsoft SVP and general counsel Brad Smith in a prepared Q & A on the topic. “We will make these decisions over the coming years, based on our actual growth in workers and the needs of different product and development teams.” Generally, says Smith, “the campus will take on more of the look and feel of a university, with outdoor common areas surrounded by buildings.” No information was immediately available regarding whether the buildings will be more vertical this time around or continue to be horizontal in nature. Microsoft executives say the additional development is expected to ultimately house between 10,000 and 12,000 workers. The company has said it expects to hire as many as 7,000 new employees worldwide this fiscal year, with 3,000 of those expected to work in the Puget Sound area. Last fiscal year, about two-thirds of the company’s employee growth occurred in the Puget Sound. All told, Microsoft employs about 28,000 people in the Puget Sound and 57,000 worldwide. Microsoft is giving a 10-year cushion to its growth plans because it has consistently met or exceeded its growth projections earlier than anticipated, “and do not foresee this trend changing,” says Smith, which is why the company has acquired 63 acres in the Issaquah Highlands. When needed, that acreage can support an additional 1.2 million sf of buildings, which translates to about 5,000 additional employees.