OpenAI has more than quadrupled its Seattle-area office footprint through a major lease at City Center Plaza in Bellevue, providing a vital lift to the challenged commercial real estate sector. The AI powerhouse added about 223,130 square feet, bringing its total occupancy to over 272,000 square feet in the 575,000-square-foot tower. This expansion demonstrates that increasing demand from AI firms is one of the few bright spots counteracting broader struggles in the office market.
Expansion Specifics at City Center Plaza
OpenAI launched its Bellevue presence with a 2024 announcement and a 2025 lease at 555 110th Ave. NE. The recent agreement makes OpenAI the anchor tenant across the building’s top levels, occupying nine additional full floors previously vacated by Microsoft, which consolidated to Redmond.
Permits outline engineering-focused amenities, including kitchens, cafes, and interconnecting stairways. While the exact headcount for the expansion isn’t public, OpenAI lists around 169 Seattle-area roles, tapping the region’s talent amid its $1.1 billion Statsig acquisition and Microsoft partnerships. Proximity to Big Tech investors supports OpenAI’s growth in a heated AI race.
Impact on Seattle-Bellevue Office Market
Seattle’s office vacancy remains elevated, with downtown at 35.6% in late 2025 and Eastside suburbs like Bellevue at 22-25%. Bellevue landlords secure rents 45% above the metro average for premium properties, even as new supply pressures absorption. OpenAI’s lease exemplifies how surging AI sector growth is directly driving increased transactions, alongside AI players like Anthropic and Nvidia, which now account for one-fifth of recent U.S. office deals.
In a sector hit by remote work and caution, this move fills high-quality voids left by tech giants, signaling selective recovery in amenity-rich assets. Bellevue’s appeal to firms like Snowflake and Zoom further cements its status as a tech hub.
OpenAI’s Strategic Push
The expansion strengthens OpenAI’s Pacific Northwest engineering base, complementing large subleases in San Francisco. It leverages Seattle’s talent pool and Microsoft connections, key amid funding speculation, as AI firms seek flexible space in secondary markets.
Market Outlook and Insights
OpenAI’s quadrupling underscores that AI companies are now a concrete driver of office revival in places like Bellevue, where 23-25% vacancy now faces upside pressure. This resurgence is concentrated in buildings favored by fast-growing AI firms, forcing landlords to upgrade or be left behind.
Expect Bellevue rents to rise in prime areas, spurring upgrades and local housing demand. Nationally, AI tenants reshape leasing. OpenAI’s move in 2026 illustrates CRE thriving with AI, widening the gap between top and average properties.
Image Credit – substack.com
