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Costco finalizes plans for long-awaited Issaquah headquarters expansion

 

Costco and the City of Issaquah reached a deal on a new 640,000-square-foot building, expected to open in 2020.

The retailer plans to add a nine-story, 620,000-square-foot office building and adjacent parking garage with about 1,650 stalls at its Issaquah campus.

The new building will mark the first construction after an agreement from a few years ago that allowed Costco to build 1.5 million square feet of new office space, and in exchange, the city and Costco agreed to partner 50/50 on nearly $50 million in new street improvements.

Costco is by far the biggest employer in the Seattle suburb. The retailer moved its headquarters to Issaquah in 1994. The new office building and parking garage at Costco’s Issaquah campus could make room for as many as 4,000 employees as the club retailer seeks to consolidate and create some breathing room at its longtime corporate headquarters.

The approval comes four years after Costco and Issaquah entered a 30-year development agreement granting the company rights to grow by as much as 1.5 million square feet, said Keith Niven, economic and development services director at the city.

Among the stipulations in the development agreement are commitments by Costco to fund half the cost of three road projects in the vicinity of its campus.

The projects dovetail with a broader redevelopment plan designed to shift central Issaquah from the lower-density suburban retail outlets of today to a more dense mix of businesses, stores and housing. On the far horizon is the expected arrival, in 2041, of light rail.

Niven said construction on the new Costco buildings is expected to begin next year with the company targeting occupancy in 2020.

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