PROFILED ON THE FOLLOWING PAGES

• Amazon.com HQ Creates New Hub

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AMAZON.COM HQ CREATES NEW HUB

In 2007, Amazon.com was experiencing unprecedented growth. With year-over-year sales up 35%, the company had outgrown its 200,000-square-foot headquarters in the Beacon Hill neighborhood of Seattle and occupied multiple buildings throughout Seattle's Downtown core as a temporary solution. With a need for a new headquarters in a central location, the tech giant faced a critical juncture.

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This same year, the urban center neighborhood plan for the South Lake Union community was updated to reflect a changing development environment. Vulcan Real Estate owned about 60 acres in South Lake Union and had developed 17 acres with 1.2 million square feet of office/life sciences research space and 600 residential units. The company's vision for South Lake Union and its work in the neighborhood to date provided a foundation for the goals set forth in the city's updated neighborhood plan. With more than 40 acres remaining for redevelopment, Vulcan held the largest urban land portfolio in Seattle. Importantly, the company had 600,000 square feet of commercial space designed and permit ready. Vulcan's development track record, as well as its ability to deliver the large and complex project within the compressed time frame, solidified Amazon.com's decision to move forward with Vulcan and its relocation and expansion in South Lake Union.

Amazon.com's move marked a high point in the area's revitalization and created nearly 4,000 union construction jobs during the down economy. The new headquarters allowed Amazon.com to remain in Seattle with a unified location to accommodate its growing employee base, supporting the vitality and competitive edge of Seattle and the region as a whole with thousands of creative class employees. The deal involved negotiating six 14- to 16-year leases with Amazon.com.

Amazon was so satisfied with the campus development and its eventual purchase that it signed three more build-to-suit leases with Vulcan for another million square feet. This success between Vulcan and Amazon.com has translated into immense benefits for other stakeholders as well. The tech company's corporate headquarters has produced positive social, cultural, educational, economic and financial outcomes for the city of Seattle and the local community. It has resulted in 7.4 million square feet of commercial office and life sciences research space; 5,680 units of for sale and for rent housing; 500 hotel rooms (including two proposed projects); an increase in land values of 45% since 2007; an average residential occupancy of 95%; and improved public infrastructure through a number of completed and/or funded investments totaling $594 million.

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After Amazon.com's tenancy was secured, a large number of like-minded businesses moved to the South Lake Union area. The neighborhood became a hub for innovation and collaboration across companies and sectors. Soon, start-ups, life science companies and tech companies alike were relocating to South Lake Union because of its unique atmosphere. In 2014, South Lake Union was recognized as one of seven “innovation districts” in the country by the Brookings Institute.

With the completion of Phase VII and VIII later this year, the Amazon.com campus will reach 14 buildings and 2.7 million square feet. Thoughtfully designed as an urban tech campus near retail and residential uses and incorporating pocket parks, plazas and street-level amenities, the headquarters blends with the neighborhood, which was one of Vulcan's most important goals. Additionally, the streetcar line that initially served as a catalyst for attracting Amazon.com to South Lake Union in 2007 will continue to grow, creating a circuit of increased transit flow and connectivity between the campus and outlying areas of Seattle.

Vulcan's completion of this five-phase development for Amazon.com's new global headquarters represented the largest office lease transaction in Metro Seattle's history. To date, the campus includes 1.7 million square feet of office space, 100,000 square feet of street-level retail space and two historic rehabs. The development of the campus and its subsequent sale have generated more than $70 million of tax revenue for the city of Seattle.

Vulcan plans to continue investing in the growth of South Lake Union, bolstering the Amazon.com offices with an increasingly diverse mix of surrounding retail, hospitality and residential properties. The online retailer has already made an immense impact on the local economy, and it will continue to do so by attracting an increasing range of other innovative companies and urban dwellers to the neighborhood. By utilizing a community-centric approach to development, rather than focusing on only adding more office assets, Vulcan will continue to make a difference in the community by building an infrastructure for the future.—Lisa Brown

KEY FIRMS ON THE PROJECT TEAM