Seattle - A fading star?
It seems Seattle’s corporate image is getting a little tarnished. First, the city lost the headquarters of the area’s largest company, Boeing. Now, another major employer is expected to start packing (eventually), as Safeco shareholders voted to sell the company to Boston-based Liberty Mutual (I voted for the sale).
No doubt Safeco will remain around for a bit, but with insurance company acquisitions, most of the “home office” operations in downtown Seattle will be absorbed by the Liberty Mutual’s East coast operations. At best, Seattle will remain a regional office. Having worked for insurance companies prior to real estate I’ve been through or have witnessed from both sides the effects of several acquisitions. It’s safe to say Seattle will lose virtually all the company’s high-paying, intelligent jobs.
I suspect Starbucks will survive its current turmoil - the loss of 180 jobs at its SODO Center headquarters and closure of 600 stores. Now we hear, courtesy of the Daily Journal of Commerce, that Starbucks is selling two of its properties in Pioneer Square, including the new office building currently under construction on First Avenue.
The city’s other major employer, WaMu, is on shaky grounds as well. There seems to be no shortage of speculation about how long WaMu can survive as an independent company. And, they’re going through significant staffing reductions, too.
Seattle has lost two of its biggest companies in Boeing and Safeco while two others are fighting for survival. It seems the city’s once bright star is dimming. And, unfortunately, selfishly for me, this gut punch to the Emerald city’s psyche may impact the region’s economic and housing recovery.