Microsoft Office 2016 reporting not enough memory

I have 2016 MBP with Touch Bar, Radeon Pro 460, macOS Sierra 10.12.2 installed. Word 2016 is sluggish and keeps reporting that I either won't be able to undo an action or am not able to perform it at all because I do not have enough memory.

I have 16 gigabytes of RAM, Word consumes about 350MB while working on 40-page document. It doesn't matter if I have 1 or 10 gigs free memory, the message appears regardless of that. I have over 800GBs free on my SSD. Is that another bug in Microsoft's product?

Solution 1:

The problem disappeared when I turned off SourceTree, which was locking files during periodic refresh. I also noticed that Office for Mac has issues with synchronization while working on files that were opened from OneDrive. So if you're having a similar memory problem, make sure that while you work on the document no other program accesses it.

It seems that Microsoft's products just don't handle file access denial well and I'd consider this behavior a bug.