Seattle Office Space News – March 2013

News

Below are comments and links to news articles and other topics relevant to the Seattle office space market from the month of March 2013.

BUILDING SALES

The Dexter Horton building located at 710 2nd Avenue sold in March for $76.6 Million.  The 15 story, 328,000 square foot building was purchased by Portland’s Gerding Edlen from a subsidiary of Prudential UK. The sale price equates to roughly $233.00 per square foot.

The McCaw family sold 605 & 625 Union Station for $96.9 million to the LA County Employees Retirement Association.  The price for the 320,806 square feet of office equates to just over $301 per square foot.

The buildings that are home to F5 Networks’ Seattle HQ are for sale.  The buildings at 351, 401 and 501 Elliott Ave W total roughly 300,000 square feet of office and are currently owned by Clarion Partners.

LEASE TRANSACTIONS

Boeing vacated the top 2 floors of Russell Investments Center despite leasing the space for 10 years less than 2 years ago.  Boeing plans to sublease the space.

Amazon is rumored to lease over 100,000 square feet of space at Metropolitan Park North located at 1220 Howell street.

Law firm Cooley LLP moved their 22,000 square foot Seattle office to Clise owned 1700 7th Avenue.

PROPOSED PROJECTS

Schnitzer West has received press recently about the planned Madison Center office tower at 505 Madison.  The building would total 750,000 square feet and would likely require significant preleasing to get started although Schnitzer may start on the parking garage later this year.

Preliminary renderings of Urban Vision’s proposed mixed use project at 2nd & Pike were released.  The project at 1430 2nd Ave will include 133,500 square feet of office space along with housing and retail.

Seattle Children’s 330,000 square feet expansion project on Sand Point Way is scheduled to open April 21st.

A small mixed use building on 11th & Pike is planned by developer Liz Dunn. Initial designs for the building call for 7,700 square feet of retail and 21,000 square feet of office.

R.C. Hedreen revised plans to develop mixed use projects at the Greyhound bus terminal site near 9th & Howell.

SOUTH LAKE UNION

In anticipation of a successful rezoning policy in South Lake Union, Vulcan revised plans for the site at 400 9th Ave in the hopes of building a 312,600 square foot office building.  More commercial development is planned for the neighborhood by other developers.

The Space Needle LLC is running radio ads that call for discretion of development in South Lake Union to protect view corridors.  These ads are in response to the city’s review of proposed rezone changes that would allow for taller buildings.

The debate on the rezone continued within the city council.

ARENA PROPOSAL

More images of the proposed NBA/NHL arena were released.  The idea is that the exterior will look like a supersonic jet turbine while the interior designs are focused on efficiency and viewing angles.

Images of the interior of the hockey rink were also released.

Seattle’s Downtown Design Review Board approved preliminary designs of the arena.

The Longshore Union continued their effort to be an obstacle to the arena plan

OTHER NEWS

The 2nd phase of the Mercer Corridor transportation project is scheduled to start in April.  The project is expected to finish in mid 2015 and will hopefully improve the traffic mess in the area.

The unemployment rate in the Seattle/Bellevue/Everett area dropped to 5.9 % in February, which is the lowest in years.

By one study, the Seattle office market is reported to have to have achieved more net absorption than any other U.S. market in 2012.

Seattle ranks #17 in the U.S. for having the most energy efficient buildings.

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