Microsoft has increased the size of its search for an office in the Reading area from around 35,000 square foot to 80,000 square foot and is shortlisting options, CoStar News can reveal.
The US computer giant has appointed CBRE on the requirement. It remains unclear what the status is of the group's larger expected 500,000-square-foot move in London, which was put on hold last year after it recommitted to offices in Paddington.
In the South East, in 2020 Microsoft centralised its occupation at its long-term campus at Thames Valley Park in Reading into Buildings 1, 2 and 3, which provide 241,000 square foot of offices.
It sold Buildings 4 and 5 which comprised 69,350 square feet and 85,900 square feet, to Baumont Real Estate, which alongside V7 has redeveloped them as the 146,000-square-foot Here and Now campus.
Microsoft subsequently handed back Building 3, comprising around 50,000 square feet, to its landlord at Thames Valley Park, meaning it currently leases close to 200,000 square foot in Buildings 1 and 2.
Market sources have suggested Microsoft is focusing its attentions on 2 Forbury Place in the centre of Reading, the Here building on Thames Valley Park and staying put.
It is thought the move is being worked on alongside a proposed revival of its larger London requirement.
The US group launched a requirement around four years ago for space in the capital. It was expected that it would consolidate its offices in London and Reading into one campus building. In the capital it has offices in Paddington and Victoria. It shut down its "Experience Centre" on Regent Street earlier this year.
The search was put on hold last year after the group had confirmed in January 2023 it would be cutting staff numbers by 10,000 or 5% of the workforce.
In November of 2023, the group pledged £2.5 billion of investment to build artificial intelligence infrastructure in the UK, putting developers on alert for opportunities to develop AI data centres and bring thousands of graphic processing units to the UK. In April of 2024 it confirmed it would be launching an AI hub in Paddington.
In November of 2024 it emerged it had recommitted to the space it occupies at British Land and GIC's 2 Kingdom Street at Paddington Central. British Land, in its results, said Microsoft had signed for 103,000 square feet at 2 Kingdom Street.