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BOEING TO MAKE SIGNIFICANT CUTS IN PUGET SOUND AREA BUILDING LEASES

 SEATTLE, March 2 /PRNewswire/ -- Consistent with its production cutbacks, work-force reductions and completion of new facilities in the Puget Sound area, The Boeing Co. (NYSE: BA) today announced it will vacate more than 1.5 million square feet of leased space in the Puget Sound area during 1993.
 "Boeing is constantly evaluating its lease situations in an effort to control overhead costs," said Andy Gay, corporate vice president, Facilities. "Controlling our costs is a significant part of Boeing's effort to remain globally competitive."
 Currently, Boeing occupies more than 50 million square feet of office, manufacturing and warehouse space in the Puget Sound area. Of that, the company owns nearly 40 million square feet and leases approximately 10.4 million square feet of space. With the completion of several facilities in 1993, Boeing-owned space will increase to 43.8 million square feet, with leased space decreasing to 8.2 million square feet. Historically, Boeing has maintained approximately one-fifth of its covered area in leases as a hedge against declines in its cyclical business.
 "Boeing will continue to lease some of its office and warehouse space," Gay said. "Owning the property saves money in the long run. However, leasing provides the company with flexibility."
 While Boeing will be vacating some of its leases as they terminate, others will be vacated prior to lease termination. Boeing has retained Cushman & Wakefield to work with property managers to explore options, such as subleasing, to facilitate the phase-out of the leases as smoothly as possible.
 "By vacating these leases, facilities will be made available for other industries which, hopefully, will help contribute to greater diversification of the Puget Sound economy," said Gay.
 -0- 3/2/93
 /CONTACT: Sherry Nebel of The Boeing Co., 206-655-6123/
 (BA)


CO: The Boeing Co. ST: Washington IN: AIR ARO SU:

SW-JH -- SE004 -- 8020 03/02/93 11:19 EST
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Publication:PR Newswire
Date:Mar 2, 1993
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