Bellevue-based tech spending software company Apptio has downsized its physical footprint in Bellevue, a company spokesperson confirmed with the Business Journal Tuesday.
According to a second quarter office market report from the commercial real estate firm Broderick Group, Apptio now leases over 60,100 square feet at Plaza East in Bellevue. The lease is a reduction of 28,000 square feet, the report noted.
"The downsize was driven by the opportunity to provide our employees more flexibility with remote work, and we are fortunate to be able to adapt to our changing space needs," the Apptio spokesperson said in a statement.
Apptio isn't the only tech company to downsize its physical footprint in Bellevue recently. Palo Alto, California-based VMware on Friday confirmed to the Business Journal the app and cloud company has reduced its office footprint in Bellevue by 34,000 square feet, and it now leases 75,000 square feet at the City Center Bellevue tower.
Apptio, founded in 2007, helps clients monitor and understand their technology spending. The goal is to help clients get the most out of their tech investments. Apptio's clients include Bank of America, FedEx and Nike.
“Technology budgets have always been a black box,” Apptio co-founder and CEO Sunny Gupta previously told the Business Journal. “And there’s not a lot of transparency into where the money is going. ... You need more ways to manage that spend better, to optimize that spend, to free up capital, to reduce costs, to help reinvest that in new innovation.”
The company went public in 2016 but was taken private when Vista Equity Partners acquired Apptio for $1.94 billion in a deal that closed in 2019.
Office space in Bellevue is generally more expensive than in Seattle. According to a first quarter report from the commercial real estate firm Kidder Mathews on the region's office market trends, the average rent per square foot a year in Bellevue's central business district is $55.15. The average rate in Seattle's central business district is $44.52 per square foot a year.
