Amazon reportedly pulls plans to expand into new Seattle skyscraper after abandoning HQ2 plans in NYC

Amazon reportedly pulls plans to expand into new Seattle skyscraper after abandoning HQ2 plans in NYC

Amazon is cutting back on its expansion plans in its hometown of Seattle, GeekWire reported Wednesday. The change of plans marks the second time in the past month Amazon has pared down its real estate expansion after the company said it was abandoning plans to build part of its second headquarters in New York’s Long Island City.

GeekWire obtained a marketing flier that confirmed Amazon is seeking tenants for office space in a building under construction in which it leased all 30 floors. All of the space in the Rainier Square building, which will be the second-tallest skyscraper in Seattle, will be leased to other companies, GeekWire reported, citing the flier and conversations with commercial real estate agents.

Amazon did not immediately respond to CNBC’s request for comment.

The scale-back could signal more conservative expansion efforts for the company, which laid off hundreds of Seattle-area employees last year, according to The Seattle Times. Seattle residents and officials have questioned Amazon’s future in the city after the company convinced local lawmakers to repeal a corporate tax by threatening to pull out of the Rainier Square location.

Amazon’s hard line on Seattle tax policy echos its recent fight with local officials in New York. City council members repeatedly pushed back on the nearly $3 billion in tax incentives the city and state had offered Amazon to move there and the company faced scrutiny from trade union officials who hoped to get Amazon to cooperate with them.

Amazon has reportedly been eyeing space in nearby Bellevue, where the company is leasing over 1 million square feet of space. In the meantime, a Seattle real estate broker told GeekWire companies like Apple, Dropbox and Oracle were considering Amazon’s Rainier Square space.

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Amazon reportedly pulls plans to expand into new Seattle skyscraper after abandoning HQ2 plans in NYC

How Amazon's situation in New York compares to Uber's   

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