The coffee rumor mill is hard at work in Seattle. The subject of this particular tea party? A potential relocation for one of the brands most synonymous with the city: Starbucks. The coffee chain is said to be eying office space in Nashville, Tennessee big enough to house 2,000 employees amidst a fresh round of layoffs and store closures.
As reported by The Seattle Times, Starbucks had previously announced it would move some of its logistics operations to Nashville as a means of establishing “a strategic presence in the Southeast region of the U.S.” At the time the relocation was said to impact just “dozens” of folks working at the Seattle HQ. But a new report suggests Starbucks is looking for something a little larger. According to real estate publication CoStar News, the company is considering leasing a 250,000-square-foot office space in Nashville as well.
The six-story office space is part of a five-acre, 1.2 million-square-foot complex that includes a 27-floor resident tower, a plaza, and 50,000 square feet of dining and retail. Estimates put the office capacity between 1,000 and 2,000 workers.
According to The Seattle Times, as of 2023 Starbucks had around 3,750 workers in the Seattle corporate office. In 2025 some 1,100 of these employees were laid off amidst a flurry of store closures and restructuring. At the same time, Starbucks renewed the lease of their Sodo neighborhood HQ, where it has been since 1997. CEO Brian Niccol stated after taking over in 2024 that relocating was “not on the list of things to do,” and Starbucks leadership has denied plans to close the Seattle HQ as recently as March 4th.
But the story seems to be evolving quickly. Further complicating the matter is the timing, coming on the heels of the state of Washington passing what is being called a “millionaire’s tax,” which would apply a 9.9% income tax on an individual’s annual earnings per year exceeding $1 million. The money, according to the bill, would go to fund education, healthcare, housing, and tax credits for working families.
Former Starbucks CEO and presidential flameout Howard Schultz has since announced his move to Miami, purchasing a modest $44 million dollar penthouse at the Surf Club, a Four Seasons Private Residences address in Surfside. Meanwhile, The Seattle Times notes that Tennessee is aggressively courting businesses and offering “substantial tax incentives” for those that move into the state.
The rumor mill around this topic is now in heavy rotation across the Pacific Northwest, particularly amongst coffee professionals and on forums like the r/Seattle Reddit page—a recent post there on the search for a Nashville facility had hundreds of comments as press time. It’s reminiscent of another Seattle institution’s relocation to middle America. Back in 2008 the Seattle Supersonics basketball team moved to Oklahoma City and became the Thunder, just two years after none other than Howard Schultz sold the team. But at least they are in talks of getting an NBA team back.
Zac Cadwalader is the managing editor at Sprudge Media Network and a staff writer based in Dallas. Read more Zac Cadwalader on Sprudge.
