Bellevue-based work management company Smartsheet Inc. (NYSE: SMAR) is significantly downsizing its footprint at Bellevue Place, the company confirmed to the Business Journal on Wednesday.
The Broderick Group's third quarter 2022 Eastside market report noted Smartsheet is subleasing 73,000 square feet of space at the downtown Bellevue property. A Smartsheet spokesperson said the sublease represents 60% of its space that will come up for renewal in 2026. Smartsheet has another floor at Bellevue Place on that same lease cycle and an additional 50,000 square feet at Bellevue Place on a 2024 lease cycle, the spokesperson added.
The company said it also has 125,000 square feet at City Center Bellevue, which now serves as its headquarters, a move that happened this year. The spokesperson said Smartsheet has occupied the space in City Center Bellevue since 2018.
Smartsheet was founded in 2005 and went public in 2018. The company's software helps with content management, collaboration and task automation. Smartsheet in September acquired Outfit, a brand management company headquartered in Australia, for an undisclosed amount. In its fiscal Q2 2023 earnings report released in early September, Smartsheet said it generated $186.7 million in revenue, a 42% year-over-year increase.
Some of the space in Bellevue Place is already being snatched up by other companies. Walmart on Monday confirmed it is subleasing space in downtown Bellevue. The Broderick Group report noted Walmart subleased almost 20,000 square feet at Bellevue Place from Smartsheet.
According to the Broderick Group report, office tenants downsizing their space will put pressure on landlords to compete.
"With many tenants resizing their office space as leases roll, there will likely be a flight to quality as tenants seek to maximize the experience and surrounding amenities for employees when they are in the office," the report read. "With this in mind, Class A+ assets will not be as negatively impacted by remote work as lesser quality and poorly located projects."
