Verizon Communications Inc. (NYSE: VZ) is taking space along Interstate 90 in Bellevue.
According to the second quarter Eastside Office Market Overview from the commercial real estate firm Broderick Group, the telecommunications giant is subleasing 32,682 square feet from rival T-Mobile at 90 North, located at 3255 160th Ave. SE.
Verizon previously had a 71,000-square-foot office in Bellevue's Eastgate neighborhood off I-90, but a project application filed in November indicated plans to raze the building and turn it into townhomes.
Verizon didn't respond to requests for comment. Representatives from commercial real estate firm CBRE, which lists 90 North, declined to comment.
Verizon's sublease from T-Mobile provides a much-needed boost to the struggling I-90 corridor office market. According to the Broderick Group report, the vacancy rate for the I-90 corridor in the second quarter was 39.8%, the highest in the Eastside and almost double that of Bothell's 21%, the second highest rate on the Eastside.
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Just two years ago, the I-90 corridor's vacancy rate was 13.9%. In June 2023, however, T-Mobile confirmed to the Business Journal it was either vacating or not renewing a series of leases along the I-90 corridor near its Bellevue headquarters. The decision added roughly 330,000 square feet of space to the market, the largest chunk being more than 175,000 square feet of space at 90 North.
Microsoft had about 1 million square feet of office space along I-90 that it let expire in 2023. According to the Broderick Group report, there are 2.17 million square feet of vacant office space along the I-90 corridor.
Verizon, based in New York City, offers cell and broadband service. The company generated $33 billion in revenue during the first quarter, up 0.2% year over year.
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