According to an SEC filing, Amazon have entered into an agreement to buy the office space they currently lease in Seattle, Washington for a mind boggling $1.16 billion. They’ve already put down a $23 million deposit, which will increase to approximately $51 million on the 22nd of October and the whole lot will be forfeit if they don’t complete in the fourth quarter of the year.
Reports from Reuters say that they’re buying around 1.8 million square feet of office space and the $644 per square foot is the highest price ever, more than double the average of $308 per square foot office buildings would normally attract in Seattle.
Mind you despite the price tag it’s probably a lot less disruptive to Amazon’s business than moving would be. If they didn’t buy the buildings that they’ve leased for many years then who know’s who their next landlord would be. It’s always nice to know that you can’t be kicked out of your home, and Seattle has been home to Amazon for over a decade, although they only moved from Beacon Hill to the South Lake Campus in 2010.
The $1.16 billion looks set to be the highest value property deal anywhere within the US in 2012.
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You might not be aware of this but Amazon has only been at that location since 2010. I visited their old offices around the time they were planning to move to their current place.