Nearly 211,000 square feet of office space at Bellevue Connection appeared on the sublease market Sept. 2, adding to downtown Bellevue's rising vacancy.

The Puget Sound Business Journal (PSBJ) reported Wednesday, Sept. 2, that a new LoopNet listing for the space lines up with Bungie, the video game studio behind Halo and Destiny.

Bungie had not publicly confirmed the sublease as of the PSBJ report.

The listing follows deep cuts at the studio. Sony Interactive Entertainment, Bungie's parent company, announced in June 2026 that it was eliminating a significant number of Bungie employees, according to Yahoo Tech.

The cuts hit most of the Destiny team and some Marathon team members.

For downtown Bellevue, the Bungie space is one more block on a rising stack. The vacancy rate stood at 25.4% at the end of 2025, according to a Broderick Group report cited by GeekWire in January 2026. That figure reflected Microsoft's exit from downtown. At a December 2024 Bellevue Downtown Association panel, industry expert Colin Tanigawa estimated the departure would clear 1.7 million square feet.

Since then, the vacancies have kept coming. Meta listed a 212,000-square-foot tower in the Spring District for sublease in June 2026, the third property it released from its local portfolio, according to a report by Sheley Bressler.

A separate PSBJ report from Wednesday, Sept. 2, noted that a closure early next year would leave a major vacancy at the 140,000-square-foot James Center.

The Bellevue Collection, a separate 5.5 million-square-foot mixed-use complex owned by the Freeman family's Kemper Development Co., is also for sale after 80 years of family ownership, the Seattle Times reported.

Not all the signals point down. Amazon still employs more than 12,000 people in Bellevue.

The same Broderick report noted that companies including OpenAI, Snap, Anduril, Shopify, Snowflake, Walmart and Chewy had signed new or expanded Eastside leases.

Still, the market uncertainty is shaping new development decisions. Tristie Tajima, senior manager of real-estate development for Skanska USA Commercial Development, said in July 2026 that construction timing for Bevel, a planned 200,000-square-foot mass-timber office tower downtown, would depend on "… market conditions and customer demand," as we reported July 26.

The Bungie sublease listing does not yet have a confirmed asking rent or lease term.