Boeing first admitted it could sell its local commercial airliner headquarters in Renton almost six months after it officially listed Longacres University for sale on Tuesday.
As Boeing seeks to drastically reduce epidemic aviation, the 215-acre Longacres site joins five other Boeing properties in the Puget Sound area that are now up for sale. other large office buildings in Renton և Bell.
The company aims to shed approximately 2.5 million square feet of office space, a 7% reduction in Boeing’s total office space in the region, plus more than 300 acres of unused land.
Conrad Chun, vice president of communications for the Commercial Aircraft division, denied that the sale of other headquarters sites showed Boeing’s gradual removal from its Puget Sound roots.
“The sale of these buildings does not mean a change in our commitment to the Puget Sound region,” he wrote. “The executive officers are still here, they live here, but their presence is not connected with the building.”
Chun said the sale reflects a reassessment of the aviation space giant’s office needs, given Boeing’s 15,000 job cuts in the state last year փորձ the experience during the COVID-19 epidemic that remote work is a viable option.
He said that the headquarters of the Commercial Aircraft will still be here, just not in the building.
“We will be more flexible about where people work and how,” Chu said. “People are not connected to big offices, but when necessary, they will be closer to where production and delivery take place.”
This includes the boss.
Commercial Aircraft Executive Director Stan Deal has been relocated to the Seattle Boeing Field 737 Delivery Center.
“There is a headquarters, but it should be thought of differently than the traditional headquarters building,” Chu said. “The flag is being flown temporarily as Stan և and his leadership team move from place to place.”
This is definitely a reduction for the CEO of Boeing Commercial. At 220 square feet, Dili’s new office is only a quarter the size of its CEO in Longares, which overlooks Mount Rhine.
Other Senior Commercial Aircraft Managers will also move and work, depending on their schedule.
Chun has an office next door to Deal, which is shared with Stephen Poe, Vice President of Human Resources, Elle ell Denny, and Chief Financial Officer.
The Visitor Office has an adjoining visitor office. Collaborate with Deal.
But those leaders will not settle there. Munir և his sales team moved from Longacres կունեն will have a base at Boeing’s office near the Renton 737 assembly plant, as will Chun’s communications team.
Two other Boeing buildings on Renton Street are also for sale.
So there are seven buildings in the Bellow Eastgate office park with Boeing Archives and some IT support teams.
In 2017, Boeing already sold four buildings in the park. The planned sale means Boeing will be completely out of Eastgate, although it will initially lease some buildings for two years.
A large warehouse of Bomarc property in Everett is for sale. 310 hectares of unused land is the Frederickson plant near Pierce, where Boeing makes 787 և 777 carbon composite tails, as well as metal wing skin panels.
A small, empty quarter-acre Boeing site that once housed a radio tower is for sale on Seacon Beacon Hill.
In the same phase of real estate sales last fall, Boeing waived a lease and moved և 1,500 engineers from its offices at Mukilteo’s Harbor Pointe, near the Everett assembly plant, to 1,500 engineers.
Concerns about the future
The sale of the property is part of Boeing’s efforts to overcome the worst downturn since the early 1970s.
For almost two years, the rationale for the 737 MAX had already drained Boeing’s finances when the epidemic paralyzed air travel and cash flow became shocking.
In response, Boeing had to implement short-term plans to launch a new aircraft; instead, it reduced the rate of jet production; last year, it cut 20,000 jobs across the company, and 10,000 jobs.
Continued cuts and purchases in this state saw Boeing cut 15,000 jobs last year.
Last month, Boeing assembled the 787 Dreamliner in South Carolina, abandoning Everett’s initial assembly line.
Boeing is closing its production research and development center across the Boeing Field, along the Marginal Way, or the facility, which includes various defenses, is not for sale.
In the fall, corporate finance director Greg Smith said the company was “reviewing every property, every building, every lease, warehouse, every site” with the goal of reducing the company’s total real estate by 30%.
Boeing CEO Dave Calhoun has repeatedly said that Boeing will be a small company in the downtrodden market on the other side of the epidemic.
“COVID-19 has dealt a huge blow to the commercial aviation industry, this is another time,” Chu said on Monday. “Our business has changed, so are we.”
However, no matter how difficult the current circumstances, there is an undeniable long-term tendency of Boeing to reduce its presence here.
Over the past eight years, Boeing’s workforce has shrunk from 87,000 to less than 57,000.
This is partly due to the deliberate policy of sending thousands of engineering jobs from here to other Boeing sites in South Carolina, Missouri and California. After one of those moves was to relocate airline customer support engineering to Cell Beach, California, in 2018 Boeing sold the two large office towers in Tucville that had previously housed the work.
And, of course, the heated debate over Boeing’s future dates back to 2001, when the company relocated its headquarters to Chicago.
So it is not surprising that many here doubt Boeing’s commitment to the region where it was born more than a century ago.
The reality is that the long-term future of aerospace in Washington state will ultimately be determined by Boeing’s choice of location when it launches its new aircraft, probably in three or four years.
Regular statements by Boeing executives that they remain committed to the region are not entirely certain, without specifying how the aircraft will proceed in the future.
But Boeing has repeatedly refused to do so during an exchange on Monday to give its local employees a moral boost in the wider community, with a firm commitment to build its next aircraft here.
The consensus among aviation նախկին former Boeing executives is that the company’s management will never make such a final commitment, as it would mean abandoning the leverage of local unions.
Boeing spokeswoman Essika Koval said the company had invested $ 1 billion in the 777X composite center in Everett, with previous investments in Everett and new aircraft delivery centers in Boeing Field.
He noted that Boeing will build the MAX in Renton at least until 2031, when Southwest Airlines will make the final delivery of orders for its last 100 aircraft.
“This is a testament to our long-term commitment to the region,” Koval said.
Good review on Longacres
Tuesday’s move to Longacres headquarters was expected. Chun telegraphed the expected sale in October.
And last month, former employees at the Renton headquarters were instructed to find their belongings. On Tuesday morning, they received a memorandum confirming what was already clear. They will not return!
The large rental headquarters building in Renton was built 30 years ago on the site of the former Longacres racetrack.
It has 855,000 square feet of office space in two large, glass-walled buildings, the Commercial Aircraft Headquarters, the company’s even larger flight training center, a large lake of green meadows, and large parking spaces for each building.
Limousines were often delivered to VIP airlines from all over the world to visit the Commercial Aircraft management and sales staff at the headquarters building.
This impressive corporate showcase is within easy reach of nearby Southcenter Mall և Renton car portals, retail outlets և fast food joints.
The unusual location of the site often surprised airline executives who flew to Seattle to fly miles through the suburban landscape to meet Boeing executives far from the skyscrapers they had hoped for in the downtown world. ,
Inside, Boeing unveiled expensive gifts from Middle East և Asian customers to celebrate the multi-billion dollar aircraft sales և relationship created by decades of transactions.
Koval said that the screenings of those corporate cups will be shown on different websites. New Sales Team Office in Renton, Aircraft Delivery Centers in Everett, Seattle, South Carolina, as well as some of the company’s overseas sales offices.
The Flight Training Center once hosted pilots from all over the world who came to train on Boeing flight simulators, until in 2013 Boeing moved the simulators to Miami.
Since then, various teams have moved to the building, which until now has been used to train airline service technicians.
Koval said Boeing would continue the training elsewhere in Puget Sound and would offer more virtual training.
Corporate records show that in 1993, Boeing had 45 million square feet of factory-office space in the Pugget Sound area, leasing 9 9 million square feet.
When the final phase of the property expropriation is completed, Boeing’s footprint will be reduced to 35.5 million square feet.