Bungie Puts 210,984 Square Feet of Its Downtown Bellevue Headquarters Up for Sublease

Bungie, the video game studio behind the Halo and Destiny franchises, has listed nearly all of its downtown Bellevue headquarters for sublease, putting one of the largest blocks of office space in the central business district back on the market.

The listing covers 210,984 rentable square feet at 550 106th Avenue Northeast, the mixed-use building known as The Bellevue Connection. It went live in early September and is being marketed by Dan Foster of Flinn Ferguson Cresa. Asking rent is available on request.

What Is Being Offered

Marketing materials break the space into four components, all listed as available now:

• First floor: 19,570 square feet, including motion-capture and streaming studios
• Mezzanine: roughly 21,000 square feet
• Second floor: 84,207 square feet, including playtest rooms and server infrastructure
• Third floor: 86,207 square feet, including work areas and a cafe

A 10-page leasing brochure reviewed by The Game Post puts the master lease term through September 30, 2035, meaning a subtenant could take the space for close to nine years. Separately, about 17,500 square feet of street-level retail at the property is also being marketed.

The building totals 227,811 square feet, according to owner Unico Properties, so the sublease represents the overwhelming majority of the property’s leasable area.

Bungie’s Position

A Bungie spokesperson confirmed the decision in an emailed statement to the Puget Sound Business Journal, saying the move “reflects the team’s evolving workplace needs and the effectiveness of its remote collaboration.” The spokesperson pointed to the digital-first work model the studio adopted several years ago and told the publication that Bungie will continue to maintain an office in Bellevue, without providing further details.

In a statement to The Game Post, a spokesperson said the studio is exploring options to sublease its campus and will continue to maintain a physical office presence in Bellevue.

Bungie has not said how large that remaining space will be, where it will be located, when the studio expects to vacate the listed floors, or whether Bellevue will remain its headquarters.

The Listing Follows a Major Round of Layoffs

The sublease comes roughly ten weeks after Bungie cut 292 jobs at the same address. A Worker Adjustment and Retraining Notification filed with the Washington State Employment Security Department listed the reductions at 550 106th Avenue Northeast, Suite 207, with separations beginning July 9, 2026. The filing classified the action as a layoff rather than a facility closure.

Bungie said at the time that Destiny 2 had fallen short of expectations and that, following the game’s final content update and with future projects still in early incubation, the studio could not continue operating at its previous size. Hermen Hulst, chief executive of Sony Interactive Entertainment’s studio business group, told employees in June that the cuts affected most of the Destiny team and some members of the Marathon team, along with parts of Bungie’s operations staff.

Sony Interactive Entertainment acquired Bungie in 2022 for $3.6 billion. The studio cut roughly 100 positions in late 2023 and about 220 more in mid-2024. Pete Parsons stepped down as chief executive in August 2025 after a decade in the role, and longtime employee Justin Truman took over leadership of the studio.

A Building Bungie Helped Define

Bungie’s connection to the property dates back nearly two decades. The studio was reported to be taking over office space at what was then the Bellevue Galleria in 2009, two years after separating from Microsoft, which had purchased the studio in 2000 and retained the Halo franchise.

The four-story building, constructed in 1998 over three levels of below-grade parking, opened as an indoor mall before shifting toward a mix of office and retail. Partners Group and Unico Properties acquired the property at the end of 2019, and renovation plans designed by ZGF Architects were submitted to the City of Bellevue in 2021, converting interior space from retail to office and recreation use. Venture General Contracting handled construction, and the work wrapped in 2022 with a new facade, mechanical and electrical systems, roofing, windows, and elevators.

Bungie announced in 2021 that it planned to expand to more than 208,000 square feet at the building by late 2022, a figure that closely matches the square footage now listed for sublease.

Retail Tenants Remain Open

The sublease applies to office space, and the property’s street-level businesses continue to operate.

BA Artisan Bakehouse, which specializes in artisanal breads and baked goods, opened at the property in January 2026. Don’t Yell at Me, a boba tea chain, opened in 2024. Men’s Wearhouse also occupies retail space at the property.

Fox & Kit, a coffee shop and indoor playground concept from interior designers Devin and Kyoko Westberg, is still planning to open at the property in what would be the brand’s first Washington location.

One street-level tenant has departed recently. Itadaki Yakiniku, the Japanese steakhouse, closed in August after opening in September 2024.

What It Means for the Office Market

The listing returns a large block of space to a market that had been absorbing them. Downtown Bellevue’s office vacancy rate fell to 23.2% in the second quarter of 2026 and availability dropped to 23.6%, declines of roughly 2.5 and 3 percentage points from the first quarter, according to Broderick Group’s Eastside Office Market Report. The Pokemon Company’s 369,800-square-foot occupancy at The Eight was the single largest driver of that improvement.

That same report tracked a shrinking pool of full-floor options in the central business district, with large-block tenants facing 51 fewer choices than at the market’s July 2024 peak. Bungie’s three full floors and mezzanine add back to that pool.