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SEATTLE-With new buildings being delivered on its main campus in Redmond, WA, and hard commitments for multiple high-rise buildings still under construction in Bellevue, Microsoft Corp. confirmed this week that it has rescinded long-standing LOI for 2201 Westlake, a 300,000-square-foot development in Downtown Seattle by Vulcan Inc., the real estate arm of billionaire Paul Allen, who founded Microsoft in 1975 with Bill Gates.

“When our discussions began the economy wasn’t like this,” Microsoft Spokesman Lou Gellos tells GlobeSt.com, explaining that while it decided not to lease 2201 Westlake it’s still in growth mode. “We are still in the process of constructing several new buildings at our Redmond campus, two of which were recently completed and are now being occupied, and have leased three high-rise buildings in Bellevue that are still under construction” or are just now being occupied.

If nothing else, the news means more competition for the two other new office buildings set for delivery in 2009, Schnitzer West’s 660,000-square-foot development at 1918 Eighth Ave. and West 8th, a 500,000-square-foot building by Touchstone Corp. at the corner of Eight Avenue and Westlake Avenue. No tenants have been revealed for any of the projects, though a couple of large requirements are reportedly being shopped in the market.

Russell Investments is reportedly seeking 500,000 square feet, though it may simply be using the search to secure a better deal at its current location 30 miles south of the city in Tacoma, WA. In addition, the Seattle law firm Perkins Coie, currently at 1201 Third Ave. on a lease that expires in 2011, is considering its options as well. Nancy Williams, managing partner of the Seattle office, confirmed for Globest.com that the company is looking for approximately 250,000 square feet, which is slightly more space than it currently leases, and considering both new and existing space, including the space it currently leases.

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