Amazon, the world’s largest internet retailer, is to pay over $1 billion to secure the purchase of its Seattle headquarters. The price paid to Microsoft co-founder Paul Allen, for the 1.8 million square feet of office space, is the highest ever paid in Seattle and the biggest single commercial property deal of the year.
The deal equates to $644 per square foot which is more than double the average price for office space in the city. Amazon has been leasing the buildings in the South Lake Union district but hopes to take advantage of current low interest rates and conclude the deal by the end of the year.
Allen’s Vulcan Real Estate put the buildings up for sale during the summer and plans to use some of the money it receives from Amazon to continue the re-development of South Lake Union which the company was instrumental in instigating.
The former industrial district is now home to a number of high tech companies and fashionable restaurants. Vulcan is currently working on several residential and commercial projects in the area including a development for Amazon. The sale of the property will allow them to begin the re-development of the remaining 30 acres that it owns.
The internet giant has further plans to build new offices in the area to accommodate its growing number of staff which now totals more than 50,000. The new buildings will add a further 3.3 million square feet of office space to Amazon’s stock over the coming eight years.
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