Former Microsoft Towers in Seattle Suburb Risk Equity Wipeout

Australian Retirement Trust, the nation’s no. 2 pension fund, is defaulting on a loan that funded the purchase of a US office complex once occupied by Microsoft Corp., underscoring the continued fallout for global investors as companies revise their office space.

The two towers in a Seattle suburb seemed like a safe bet for their Australian buyer in early 2020, packed with thousands of Microsoft workers. But the tech giant vacated the complex as hybrid work trends and job cuts allowed it to consolidate offices in the years following the pandemic, leaving both buildings empty in an area where nearly a fifth of space is now vacant.