A judge in Seattle issued a preliminary injunction against Kalshi, finding that Washington state is likely to prove that the fast-growing prediction market is running illegal online gambling.

The ruling by King County Superior Court Judge John McHale, issued Monday, does not immediately halt Kalshi’s operations in the state. McHale granted the injunction in the case brought by Washington AG Nick Brown, but deferred the specifics until early next month.

McHale rejected Kalshi’s argument that oversight by the U.S. Commodity Futures Trading Commission preempts state gambling laws. That has been the basis of Kalshi’s defense against regulators across the country. Washington is the latest state where a court has shot it down.

Kalshi quickly pushed back on the ruling.

“States don’t have jurisdiction to regulate prediction markets. Many courts — including the Third Circuit — have made this clear,” spokesperson Jacki McGavick said in a statement. “We’re disappointed to see Washington State continue wasting taxpayer dollars.”

In his ruling, McHale said Kalshi “willfully ignored” a December 2025 notice from the Washington State Gambling Commission that event-based contracts were not authorized in the state, and cited a Kalshi ad showing a text exchange where one user tells another: “I found a way to bet on the NFL even though we live in Washington.”

Kalshi’s platform lets users bet “yes” or “no” on thousands of events across sports, elections, entertainment, and so-called “mention markets” — wagers on whether public figures will say specific words. The New York-based company, which markets itself as a federally regulated “prediction market,” takes a transaction fee on each bet.

Washington has some of the strictest gambling laws in the country: the legislature banned internet gambling in 2006, and while the state allows a lottery, horse racing, and tribal-casino gambling, online betting is broadly prohibited and sports wagers are legal only in person on tribal lands.

The order requires Kalshi to preserve all records tied to Washington users, including logs, communications, geolocation data and marketing materials.

The specific operational terms of the injunction are still being determined: McHale gave both sides until Aug. 3 to submit proposed language, with a full order to follow by Aug. 5.

For the first time in several years, there are indications that the worst may be over for the Seattle region’s battered office market — and artificial intelligence companies appear to be playing a leading role.

The regional office market (spanning Seattle, Bellevue and the surrounding Eastside) posted positive net absorption during the second quarter, meaning companies occupied more office space than they vacated, according to a new report from commercial real estate firm JLL. It’s a notable shift after years of downsizing driven by remote work, layoffs and corporate cost-cutting.

Technology companies accounted for 42.5% of all leasing activity during the quarter, easily outpacing every other industry. JLL said AI-related leasing is on track for a strong year as companies establish engineering hubs in the Seattle region to tap its deep talent pool while taking advantage of office costs that remain well below San Francisco and New York.

In fact, leasing by AI companies has accounted for 21.6% of activity in the Seattle and Eastside year to date, and now the entire AI footprint in the region is 855,000 square feet. That’s double the amount in 2024, according to JLL.

The quarter’s largest deals reflected that trend.

• Databricks signed a 142,000-square-foot lease at Four106 in downtown Bellevue, the biggest office transaction of the quarter.
• DocuSign committed to 116,000 square feet at Seattle’s JPMorgan Chase Center.
• Pokémon moved into The Eight office tower in Bellevue, taking 369,800 square feet of space.

The Pokémon deal helped push the region to 372,000 square feet of positive net absorption for the quarter — reversing a run of quarters in which tenants gave back more space than they took.

The numbers offer an encouraging change after years of gloomy office market reports, but they hardly signal a full recovery. Regional vacancy remains elevated at 23.9%, while overall availability sits at 25%.

Companies continue to consolidate space, landlords are still offering concessions, and asking rents remain under pressure as tenants retain significant negotiating leverage, JLL said in the report

Still, there are indications the market’s fundamentals are improving.

Availability has now declined for two consecutive quarters and has fallen from a peak of 26.5% a year ago. At the same time, JLL reports there is currently no new speculative office construction under way — buildings started without tenants committed — meaning even modest growth in demand could have a greater impact on occupancy than in previous years.

Rather than signaling a broad-based office comeback, the latest leasing data suggests a more nuanced story: AI companies and other fast-growing technology firms are helping stabilize a market that had spent years moving in the opposite direction.

The report reinforces a trend GeekWire has been tracking over the past year as AI companies expand their presence across the Seattle region. Alongside Microsoft and Amazon, companies including OpenAI, Anthropic, xAI, Armada and Anduril have been building engineering teams in the area, drawn by one of the country’s deepest concentrations of AI and cloud computing talent.

Whether that momentum continues will depend on how quickly AI hiring expands and whether more companies decide they need additional space for a new generation of engineers. But after several years defined by shrinking footprints and empty offices, the second quarter offered the first meaningful indication that Seattle’s office market may finally be finding its footing.

Salesforce’s Tableau business has renewed its lease for roughly 114,000 square feet at the Data 1 office building in Seattle’s Fremont neighborhood, extending its long-term home in the city.

The lease renewal takes effect after the current agreement expires in 2029, according to an announcement Monday first reported by the Puget Sound Business Journal. It marks the largest office lease renewal in Seattle this year.

The renewal continues Tableau’s long association with Fremont, where the company added offices over the years to accommodate its rapid growth before its $15.7 billion acquisition by Salesforce in 2019. Salesforce CEO Marc Benioff once said the Seattle region would become the company’s “HQ2” with the Tableau deal.

However, the years following the acquisition brought significant change. Salesforce conducted multiple rounds of layoffs that affected Tableau employees and trimmed its Seattle office footprint as hybrid work reshaped demand for office space.

Former Tableau CEO Mark Nelson also departed in 2024 after leading the business for two years. Before the acquisition, Tableau had grown to about 4,200 employees worldwide, about half of them in the Seattle region. 

Salesforce originally planned to sublease the Data 1 building at 744 N. 34th St., which Tableau opened in 2018. But it then quickly reversed course in 2023, instead choosing to put its nearby Fremont headquarters building on the sublease market.

The Tableau news also comes at a changing time for Fremont.

Last year, Google announced plans to leave its Fremont campus, bringing all of its employees in Seattle together at its South Lake Union campus. At the time, it cited a desire for better collaboration and community. The pending departure has meant a large chunk of prime office space remains available for lease along the Lake Washington Ship Canal.

However, other companies and organizations have discovered the so-called “Center of the Universe.” Chip maker Nvidia recently leased 28,000 square feet of space at The Fremont Lake Union Center building and the global biotech nonprofit PATH last year took over offices formerly occupied by Tableau in Fremont’s West Dock building.

We’ve reached out to Salesforce about the Tableau lease, and we will update this post as we learn more.

UPDATE with statements from Salesforce and Hess Callahan Grey Group:

“Data 1 has been a critical hub for our local employees and customers, and we are thrilled to continue our presence in Fremont,” said Rob McCorkindale, VP of Global Real Estate Portfolio & Transactions at Salesforce. “This renewal underscores our continued investment in the Seattle region and our focus on creating spaces that inspire our people to do their best work.”

“Salesforce has been an exceptional tenant and a valued presence in the Fremont community since Data 1 was completed,” said Mark Grey, partner at Hess Callahan Grey Group. “Their decision to extend their commitment to the building speaks to the enduring appeal of Fremont and the importance of creating great environments for leading employers. Salesforce is an integral part of the neighborhood’s technology ecosystem, and we are proud to continue supporting their long-term presence in Seattle.”

Seattle-area startups raised $2.7 billion in venture funding through the first half of 2026, across 163 deals, down about 40% from $4.5 billion in 210 deals during the same period a year ago.

The figures come from the recently released PitchBook-NVCA Venture Monitor report for Q2 2026. The decline in capital reflects fewer deals across the board in the Seattle region, with much of the funding going to a handful of large rounds for energy, cybersecurity, and space startups.

Here is the region’s top 5 for the second quarter, as tracked in the report:

• Helion Energy’s $465 million Series G round was the biggest deal of the quarter.
• Starcloud raised $170 million for space-based data centers.
• XBOW pulled in $155 million for autonomous cybersecurity systems.
• Starfish Space closed about $110 million for spacecraft servicing.
• Gradial raised $65 million for its agentic enterprise software platform.

Against the AI grain: In Q2 2026 specifically, startups in the Seattle area closed 85 deals totaling $1.5 billion. That was down from 101 deals and $2.3 billion in the same quarter a year ago, but up from Q1 2026, which PitchBook revised to 78 deals and $1.2 billion as part of its regular data updates.

Heavy infrastructure investments by Microsoft and Amazon have helped to establish the Seattle area as an AI hub, but the region’s pure-play AI startups, on the whole, aren’t seeing investment on the same scale as some of their peers in Silicon Valley and other tech hubs around the country.

That creates a disconnect with the larger U.S. venture capital market. AI companies accounted for 86% of all U.S. venture dollars in the first half of the year, according to the PitchBook-NVCA data.

Nationally, it was a record half: U.S. startups raised $412.7 billion through June, already surpassing the full-year record of $358.6 billion set in 2021. But the number is misleading. Deals of $100 million or more accounted for 87.5% of the total, and AI companies captured 86 cents of every venture dollar.

OpenAI and Anthropic alone absorbed roughly 43% of all global venture capital in the first half of the year, by one estimate. The Bay Area, home to both, pulled in $319 billion, about three times its H1 2025 total.

Strip out those two companies and the national picture looks very different. Seed funding fell 27% nationally in the first half, and first-time fund formation is on pace for its lowest year since 2016.

Regional trends: In that way, what’s happening in the Seattle area reflects the current realities of the market. However, the region is also slipping relative to its peers in the latest numbers.

Among the 10 largest U.S. metro areas for venture funding, Seattle ranked seventh by capital invested in the first half of the year, down from fifth in H1 2025. By deal count, the region was last in the top 10.

The data used in this analysis covers the Seattle-Tacoma combined statistical area (CSA), a broader regional boundary that includes communities beyond the core metro region.

Political climate: Washington’s shifting tax and economic landscape adds another variable.

The state now taxes capital gains at up to 9.9%, a new millionaires’ tax takes effect in 2028, and legislators this year floated taxing the federal QSBS exemption that startup founders and early employees rely on when they sell shares at exit. That bill didn’t pass, but generated enough alarm to cause a backlash from startup community leaders and investors.

Looking ahead: Blue Origin, Jeff Bezos’ Kent-based space company, is reportedly seeking up to $10 billion in what would be its first outside funding round. A deal that size would be larger than every other Seattle-area venture round this year combined.

For the second time in the past 60 days, former Starbucks CEO Howard Schultz has penned an opinion piece in the Wall Street Journal that takes direct aim at the state’s political leadership, calling Seattle Mayor Katie Wilson “inept” and noting that Gov. Bob Ferguson continues to “burden businesses with one tax increase after another.”

Like GeekWire contributing columnist Charles Fitzgerald earlier this month, Schultz also points out that Gov. Ferguson’s recently-formed economic development council has no real startup representation, and is packed with big institutions. 

In his piece, Schultz points specifically to Kent-based Stoke Space, the reusable rocket startup that has raised more than $1 billion in funding, as the kind of company Washington needs to fight to keep.

Schultz, who decamped for Miami earlier this year, is obviously concerned about the well-being of his former state. And the one-time presidential hopeful certainly has a lot of ideas for the place he just left — arguing that the reindustrialization of the U.S. could be sparked by matching entrepreneurs with young people seeking apprenticeship opportunities in the trades. 

In May, Schultz wrote a separate piece in the Journal titled: Seattle Turns Hostile to the Great Businesses It Made.

Schultz makes some good points, and he echoes the statements of many in the business community who are concerned about the current direction. We’ve also reported recently on how other states — including Ohio — are out to eat the lunch of Washington state.

And we’ve pointed out the the long slide in Washington state’s business climate, reporting on CNBC’s report this week that ranks Washington No. 11 for business. That’s down from No. 2 four years ago, and No. 1 in 2017.

But you have to wonder: Is the coffee magnate really the best messenger for what ails Washington state? And what’s his end game? It seems his words would carry more weight had he decided to stick around, and try to fix the broken system. 

Then again, Florida has its own challenges. Perhaps his next editorial will tackle a few of those.

This story originally appeared on Real Estate News.

A federal court has turned down the Federal Trade Commission’s request to declare a rentals deal between Zillow and Redfin “presumptively unlawful” before trial next month.

On Wednesday, July 8, Judge Anthony J. Trenga of the U.S. District Court for the Eastern District of Virginia denied the FTC’s motion for partial summary judgment in its case alleging Zillow and Redfin violated antitrust laws when Zillow paid $100 million to become Redfin’s exclusive multifamily rental listings provider in early 2025.

After a hearing Wednesday morning, Trenga said he found “genuine disputes of material fact” regarding the FTC’s ask.

Last October, five states joined the FTC in suing Zillow and Redfin over their rentals partnership, and the cases were merged in November. The defendants sought a dismissal earlier this year, which the judge denied, and on May 20 filed an official response to the FTC’s claims.

The complaint is scheduled for a bench trial, meaning the judge will hear and decide the case without a jury, on Aug. 24.

What the states and FTC asked for

In their June 10 motion, the plaintiffs asked for declarations that would have put more of a burden on Zillow and Redfin at trial if they had been granted. Specifically, they asked the court to:

• Deem the nationwide market for internet listing service (ILS) advertising for rental properties and for multifamily rental properties as the “relevant markets” for the case
• Declare the Zillow-Redfin deal an “acquisition of assets” under Section 7 of the Clayton Act, which prohibits mergers and acquisitions that would substantially lessen competition
• Declare the deal “presumptively unlawful” for further concentrating already highly concentrated relevant markets and therefore lessening competition

Zillow, Redfin dispute FTC assumptions

On June 24, the defendants asked the court to reject the FTC’s motion outright. 

Regarding the relevant markets, they said rental competition is local, not national, and non-ILS companies such as Google and social media outlets compete for rental advertising dollars with ILSs like Redfin and Zillow. Thus, those types of companies should not be excluded as competitors in the same market. 

In response to the FTC’s request to to define the Zillow-Redfin deal as an acquisition of assets that is presumptively unlawful, the defendants argued that it is an open question whether the deal was a merger and that the presumption request was improper at this stage of the proceedings.

Judge convinced by defendants’ arguments

In his July 8 ruling, Trenga agreed with the defendants, finding that “genuine disputes of material fact existed” regarding “the relevant product market, relevant geographic market, and the presumptive illegality of Defendants’ challenged activity for purposes of Plaintiffs’ claim under Section 7 of the Clayton Act.”

The defendants, not surprisingly, supported the ruling. 

“The FTC asked the court to partially resolve this case before Zillow has the opportunity to present its full evidence at trial — evidence that will demonstrate the pro-competitive effects of this partnership for renters and housing providers,” Zillow said in a statement on its website. 

“We are pleased with the court’s decision today, and look forward to presenting the full record at trial next month.”

Similarly, a Redfin spokesperson told Real Estate News the company “strongly” disagrees with the FTC’s allegations and is eager to present “the full facts” at trial.

“The reality is simple: Redfin’s actions are pro-competitive and benefit consumers,” the spokesperson said in a statement.

“Redfin pursued the Zillow partnership to maintain and grow Redfin’s rental business.  And because of that decision, Redfin’s websites have more rental listings than ever before and Redfin can invest even more in search innovations that directly benefit our customers.”

The FTC declined to comment for this story. 

For much of the past year, the narrative surrounding Washington state’s business climate has taken a decidedly negative turn.

Business leaders have criticized a wave of new taxes approved by lawmakers. High-profile companies have announced expansions elsewhere. Entrepreneurs have questioned whether Washington remains as welcoming to innovation as it once was, prompting Gov. Bob Ferguson to launch a new Economic Development Council aimed at strengthening the state’s competitiveness.

But a new national ranking released Thursday complicates that narrative.

Washington climbed three spots to No. 11 in CNBC’s annual America’s Top States for Business rankings, up from No. 14 last year, suggesting that many of the state’s underlying competitive strengths remain intact even as debate over its business climate has intensified.

That’s the good news. The bad news: Just four years ago, Washington ranked No. 2 in the same survey. In 2017, the state was No. 1

Certainly, Washington is at a crossroads when it comes to how it thinks about its business community. The CNBC ranking and the big fluctuations over the past four years speak to the seesaw-like narrative that has taken shape.

The business climate also has been front-and-center in GeekWire’s recent coverage.

Washington lawmakers approved billions of dollars in new taxes during this year’s legislative session, including new taxes affecting many technology companies.

Ferguson subsequently created the Economic Development Council composed of leaders from companies including Microsoft, Amazon, Boeing and T-Mobile to identify ways to strengthen the state’s economy amid growing concerns about competitiveness. (GeekWire contributing columnist Charles Fitzgerald questioned why the council did not include anyone from the startup community in his recent piece: Governor’s new economic council snubs startups, forgets AI).

We also recently traveled to Cleveland to examine why Ohio has emerged as one of the country’s fastest-growing destinations for business investment and technology jobs. State leaders there have aggressively positioned Ohio as an alternative to coastal technology hubs, touting lower costs, business-friendly policies and major investments in manufacturing, semiconductors and artificial intelligence infrastructure.

That strategy appears to be paying off.

Ohio claimed CNBC’s top spot this year, overtaking last year’s winner to become America’s Top State for Business in 2026. It has been an historic climb for the Buckeye state, which ranked No. 30 in the inaugural survey in 2007 and just cracked the top 10 last year.

One of GeekWire’s key takeaways from our visit to northeast Ohio is that the entire community is unified, rowing in one common direction, from Gov. Mike DeWine to real estate developers to entrepreneurs to philanthropic organizations.

“I don’t give advice to other areas,” DeWine told us on our recent visit. “But my advice to people is, come to Ohio. Come work in Ohio. You will not find a better place, better people, quality of life. Cost of living is low compared to the two coasts.”

The ranking also comes as several prominent Washington employers have announced significant investments outside the state. Starbucks recently unveiled plans for a major corporate expansion in Nashville, while aerospace supplier Janicki Industries said it will build a large new manufacturing campus in Montana, fueling concerns among some business leaders that Washington is becoming a more difficult place to grow.

At the same time, CNBC’s methodology highlights many of the advantages that have long made Washington one of the country’s leading innovation economies. Here’s how Washington ranked per CNBC:

The network evaluates states across 10 categories using 138 metrics, including workforce, infrastructure, economy, technology and innovation, business friendliness, education, cost of doing business and quality of life. The methodology is updated annually to reflect the factors companies say matter most when making investment decisions.

While Washington continues to face challenges related to business costs and taxes, it remains home to one of the nation’s deepest concentrations of technology talent, world-class research universities, global companies including Microsoft and Amazon, and a robust startup ecosystem — strengths that continue to score well in CNBC’s analysis.

The results also underscore how different rankings can produce different conclusions depending on what they measure. The nonpartisan Tax Foundation, which focuses specifically on state tax policy, ranked Washington 45th in its 2026 State Tax Competitiveness Index, citing the state’s gross receipts-based Business & Occupation tax, taxation of business inputs and recent changes to its capital gains tax.

Seattle also recently declined in a new ranking of the best places in the U.S. to attract foreign businesses and investment. The fifth annual list compiled by British newspaper Financial Times and stock market index Nikkei ranked Seattle 13th among 95 U.S. cities — a drop of 11 places from last year’s second-place position.

Together, the rankings illustrate the complexity of evaluating a state’s business climate.

Washington continues to enjoy many of the assets that have made it one of the nation’s leading centers for technology and innovation. At the same time, business leaders have become increasingly vocal that higher taxes and rising costs could erode those advantages over time if policymakers fail to address competitiveness.

Add another name to Bellevue’s growing list of AI tenants.

Taiwan-based eNeural Technologies is setting up its North American headquarters in the city, joining a wave of AI companies — from CoreWeave to xAI to OpenAI — that have staked out office space east of Seattle over the past year.

eNeural plans to invest $3.5 million in the Seattle region over the next three years and create about 30 jobs, more than 20 of them AI engineering positions, according to Greater Seattle Partners, the regional economic development group that announced the expansion.

The company said it eventually envisions its Bellevue office growing into a core edge AI research and development center with more than 500 employees over the next decade.

The company builds lightweight, low-power AI software and chips that let devices — logistics equipment, vehicles, smart city infrastructure — run AI directly on-site rather than relying on the cloud. eNeural says its portfolio spans model optimization tools, self-learning edge platforms, and neural processing unit silicon IP, along with vision-language and large language model tools built for private, secure deployments.

eNeural founder and Chairman Jiun-In Guo called the region “one of the most innovative technology ecosystems in the world” and said establishing an HQ in Bellevue gives the company access to “a unique combination of world-class AI talent, global technology leadership, and proximity to key enterprise customers.”

eNeural’s path to Bellevue ran through Greater Seattle Partners’ SelectUSA Seattle Spinoff program, which introduced the company to the region’s AI and tech ecosystem in 2025.

eNeural’s arrival adds to a run of AI companies moving in alongside tech giants Amazon and Microsoft and staking claims on the Eastside over the past year:

• CoreWeave recently doubled its footprint to 36,000 square feet at One Bellevue Center, expanding its engineering hub with dozens of open roles in the region.
• Elon Musk’s xAI unveiled a 25,000-square-foot office in the former Epic Games space at Lincoln Square South.
• OpenAI moved into a new engineering office at City Center Plaza, a space built for 250 employees with room to grow to as many as 1,400.
• Denver-based Crusoe opened a 7,400-square-foot office in the Key Center building.

Seattle did notch a win of its own this week with the news that Anthropic is leasing 113,000 square feet of space across multiple floors in a South Lake Union development.

The Bellevue office will serve as the eNeural’s primary hub for customer engagement, strategic partnerships, business development, and advanced AI engineering across North America.

Anthropic is embarking on a major expansion in Seattle, underscoring how artificial intelligence companies are emerging as one of the few bright spots in the region’s office market.

The maker of the Claude AI model recently finalized a lease at Dexter Yard North in Seattle’s South Lake Union neighborhood, capping months of speculation about the company’s expansion plans in the region.

Terms of the deal were not publicly disclosed, but CoStar News reports that the company leased 113,000 square feet of space across multiple floors in the north tower at 700 Dexter Avenue North. CoStar called it one of the largest office deals of the year so far in Seattle.

The expansion would significantly increase Anthropic’s footprint in Seattle, where the San Francisco-based company established an engineering office in 2024 as it recruited talent from the region’s deep pool of AI researchers and software engineers.

It would also place Anthropic next door to Amazon. The companies in April expanded their existing partnership: Amazon committed to invest up to $25 billion in Anthropic, which simultaneously made a $100 billion-plus spending commitment to AWS over 10 years. 

The following month, Anthropic announced $65 billion in funding at a $965 billion valuation, thought to be the last venture round before an initial public offering later this year.

On Thursday, Anthropic released Claude Sonnet 5, which the company says “can make plans, use tools like browsers and terminals, and run autonomously at a level that, just a few months ago, required larger and more expensive models.”

Also this week, The U.S. Department of Commerce removed export controls on the company’s Claude Fable 5 and Mythos 5 models, part of an ongoing back-and-forth with the Trump administration.

Anthropic’s Seattle lease provides hope that demand from AI companies could help revive parts of Seattle’s office market after several years of elevated vacancy driven by remote work and tech industry cutbacks. Seattle’s office vacancy rate inched up to 28% during the first quarter, the highest in the region.

Other AI firms, including OpenAI and Databricks, have also expanded their Seattle-area office footprints in recent months. In those instances, the companies chose to grow in nearby Bellevue.

Dexter Yard, a two-building office and life sciences campus developed by BioMed Realty, opened in 2022 and was designed to accommodate both technology and biotech tenants. The north tower contains approximately 163,000 square feet of office and lab space.

Anthropic has a number of open engineering roles spread across Seattle, New York and San Francisco. The company says it expects all staff to be in one of their offices at least 25% of the time.

A spokesperson for Anthropic acknowledged the new lease, but did not respond to requests for additional comment.

Gov. Bob Ferguson last week recruited top executives from Microsoft, Amazon, T-Mobile, Boeing and other major employers to help shape Washington state’s economic strategy, launching a new advisory council as concerns mount that the state is becoming less competitive for business.

The 26-member Governor’s Economic Development Council is the first such governor-led economic advisory body in roughly two decades, reviving an approach last used under former Gov. Christine Gregoire in 2006. The group includes leaders from technology, aerospace, organized labor, higher education, tribal governments, ports and economic development organizations who will advise the governor on policies aimed at strengthening Washington’s economy. (See full list below).

One missing ingredient: No members from Washington’s venture capital or startup ecosystem are on the council, even though they are often considered the bench strength of a growing economy.

The announcement comes as executives, startup founders and business organizations have increasingly warned that higher taxes, rising costs, permitting delays and an uncertain regulatory environment are making Washington a more difficult place to build and grow companies. Ferguson recently signed the so-called “millionaires tax” — a proposed 9.9% tax applied to taxable, personal annual income that exceeds $1 million.

Some of the region’s wealthiest and most prominent entrepreneurs — including Zillow and Expedia co-founder Rich Barton; Amazon founder Jeff Bezos and former Starbucks CEO Howard Schultz — have publicly announced moves out of Washington state in recent years.

Starbucks also recently announced a major expansion in Nashville, and Montana Gov. Greg Gianforte of earlier this month announced that Sedro Wooley, Wash.-based Janicki Industries chose Great Falls for the site of an $800 million manufacturing center expected to create 1,000 jobs.

“Washington is our home, and that is not changing,” said John Janicki, president of Janicki Industries, in a press release. “Our footprint in Washington has continued to grow but is slowing due to ever-increasing regulations and lack of business understanding at an executive and legislative level.” 

Meanwhile, a recent survey from the Association of Washington Business found that 24% of businesses are considering a relocation out of the state, up from 17 percent in the prior quarter.

Washington’s economic climate was also one of the reasons why GeekWire recently traveled to Cleveland, where we explored how the Midwestern city was positioning itself for a changing economy, and the lessons that Washington could learn from it.

“We cannot take our strength for granted,” Ferguson said in announcing the council. “I’m launching a historic convening of top leaders from around Washington state to help guide the next chapter of economic prosperity for our state.”

The council will help develop Washington’s long-term economic strategy, identify opportunities to create family-wage jobs, evaluate the state’s competitiveness against other states and global markets, recommend ways to attract new employers and review regulatory barriers that may be slowing economic growth. The group will meet quarterly and submit recommendations to the governor.

The council’s creation comes after months of growing unease within Washington’s technology and business community.

GeekWire has reported extensively on criticism surrounding this year’s tax package, which raised business taxes on many employers and expanded the sales tax to additional services, including advertising. Business groups warned the measures could discourage investment and expansion in Washington, while lawmakers argued the revenue was necessary to close a multibillion-dollar budget gap and preserve essential public services.

The broader economic backdrop remains mixed. Washington continues to rank among the nation’s strongest state economies and remains home to global leaders in artificial intelligence, cloud computing, aerospace and life sciences. At the same time, employers are navigating higher borrowing costs, federal policy uncertainty, trade tensions and intensifying competition from states aggressively courting new investment.

As one example, Ohio Gov. Mike DeWine recently encouraged people and businesses from places like Washington to consider Ohio.

“Come work in Ohio,” DeWine noted after a question from GeekWire about advice he’d provide to Washington. “You will not find a better place, better people, quality of life. Cost of living is low compared to the two coasts.”

In the press release announcing Janicki Industries’ Montana expansion, Gianforte was a bit more blunt.

“The Treasure State is proud to attract job creators like Janicki that choose to expand from high-tax, high-regulation blue states to take advantage of our unmatched quality of life, lower taxes, and strong workforce,” he said. “I look forward to seeing the impact of this significant investment.”

Ferguson has sought to make economic development a central priority during his first year in office. His administration has highlighted efforts to speed permitting across state agencies, increase housing production and invest in sectors including quantum computing, advanced manufacturing and clean energy.

However, some have argued that the governor’s efforts come a bit too late, and are only be instituted in response to criticism. Gov. Ferguson shot back at that contention in the press conference last week, saying he doesn’t worry about critics and he’s interested in “solving problems.”

“I didn’t wake up last week and think about forming this council,” he said. “To be clear, as I mentioned in my talking points, this was an effort we really started last year and was an outgrowth of having conversations with many of the folks behind me and many other people across the state.”

Whether the new council ultimately leads to meaningful policy changes remains to be seen. But its creation sends a signal that Ferguson intends to place economic competitiveness — and closer engagement with Washington’s business community — near the center of his administration.

Amazon Chief Global Affairs and Legal Officer David Zapolsky, a member of the newly created council, called the formation of the group an “important step.”

“When the public and private sectors align around shared goals, communities benefit,” he said.

Governor’s Economic Development Council members:

• Michael Cade — Incoming Board Chair, Washington Economic Development Association; Executive Director, Thurston County Economic Development Council
• Dr. Betsy Cantwell — President, Washington State University
• Leonard Forsman — Chairman, Suquamish Tribe
• Denny Heck — Washington State Lieutenant Governor
• Kris Johnson — President, Association of Washington Business
• Trevor Johnson — CEO, Blackwood Homes
• Dr. Robert Jones — President, University of Washington
• Mike Katz — Chief Business & Product Officer, T-Mobile
• Mary Kipp — President & CEO, Puget Sound Energy
• Heather Kurtenbach — Executive Secretary, Washington State Building & Construction Trades Council
• Dr. Thomas J. Lynch Jr. — President & Director, Fred Hutchinson Cancer Center
• Julianna Marler — CEO, Port of Vancouver
• West Mathison — President & CEO, Stemilt Growers
• Stephen Metruck — Executive Director, Port of Seattle
• Denise Moriguchi — President & CEO, Uwajimaya
• Stephanie Pope — President & CEO, Boeing Commercial Airplanes
• Heather Rosentrater — President & CEO, Avista
• Michael Senske — Chairman & CEO, Pearson Packaging Systems
• April Sims — President, Washington State Labor Council, AFL-CIO
• Brad Smith — Vice Chair and President, Microsoft
• Rachel Smith — President, Washington Roundtable
• Bill Sterud — Chairman, Puyallup Tribe
• Shane Tackett — President and Chief Financial Officer, Alaska Airlines
• Monique Valenzuela — Executive Director, Ventures
• Dr. Rebekah Woods — President, Columbia Basin College
• David Zapolsky — Chief Global Affairs & Legal Officer, Amazon