Amazon To Spend $1 Billion To Buy-Out Their HQ Real Estate In Seattle

Posted Oct 7, 2012 will be spending around $1 billion to buy out their corporate headquarters in Seattle that they are currently leasing according to Reuters.  The $1.16 billion transaction is the largest commercial real estate deal for a single property in the United States this year.  The headquarters includes 11 buildings in the South Lake Union area of seattle, which has 1.8 milllion sq. ft. of corporate office space.

Amazon is acquiring the real estate from Vulcan Real Estate, a company that is owned by Microsoft co-founder Paul Allen.  Vulcan put the buildings up for sale as of the end of August.  Amazon is paying around $644 per square foot for an office building that has around 100,000 sq. ft., which is more than double the average rate of around $308 for Seattle office space.

Amazon started to move their staff to South Lake Union in 2010.  They gave up their former headquarters in the PacMed Center last year to accomodate increases in staff.