Seattle Office Space News – October 2013

News

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

OFFICE LEASES

The biggest office lease reported in October was that of Tommy Bahama at 400 Fairview in South Lake Union.  The company will lease 110,000 square feet within the 13 story project owned by Skanska.

Also, online skin care company Paula’s Choice leased 21,000 square feet at 705 Union Station.  The company is relocating from Renton.

BUILDING SALES

Beacon closed on the Exchange building at 821 2nd Ave in Seattle for $66 million or $219 per square foot.  Ashforth Co. was the seller for the 22 story 300,500 square foot historic building.

The First Hill Medical Buildings in Seattle’s first hill were sold to Healthcare Realty Trust for $34.9 Million in October.  The purchase price equates to $427/SF for the 81,720 square foot campus.

Goodman Real Estate bought the Grand Central building located at 216 1st Ave S in Seattle’s Pioneer Square neighborhood for $11.5 million. The purchase price for the 72,500 historic office building equates to $158.62/SF.

Martin Smith purchased the Holyoke Building from Dina Corp. for $7.4 Million.  The sale of the 113 year old building at First and Spring equates to a price per square foot of $185.19.

PROPOSED DEVELOPMENTS

The University of Washington revealed that they will redevelop a portion of Rainier Square in the Seattle CBD.  While plans are very preliminary, the UW indicated that the site has the potential for one million square feet of office, residential, hospitality or retail space.  Construction is slated to occur between 2015 and 2017 and a developer could be selected as soon as November.  The redevelopment is part of the Metropolitan Tract that is the original UW campus in Seattle that has been managed by Unico for the past 50 years.

Daniels Real Estate is still preparing to develop the 43 story hotel and office project at 5th & Columbia.  The 528,000 square foot office portion is set to open in July of 2016 while the SLS brand hotel will open a few months later.

Amazon continues to refine design plans for their 3.3 million square foot campus at 2101 7th Ave in downtown Seattle, which will include three 65,000 square foot spheres.  The spheres won the approval of Seattle’s Design Review Board.

Dexter Station, a 342,000 square foot office project, got some press for being well suited for technology tenants.  The project is expected to be ready for tenant improvements in December of 2014.

Trammell Crow is planning to build a 14-22 story office building at the NW corner of Terry Avenue and Stewart street in the Denny triangle neighborhood.  The site is currently occupied by a 49 unit apartment building.

OTHER NEWS

This article provides information about significant leases in Seattle during Q3 2013.  Amazon is the leading absorber of space on the year and the vacancy rate in Seattle continues to drop.

Twenty three bus stops along Third Avenue in downtown Seattle are undergoing a redesign.  King County Metro and Seattle’s Department of Transportation are adding new shelters, lighting and signs for the bus stops in the hopes of increasing pedestrian appeal and traffic flow.

The Seattle Architecture Foundation held an event featuring ideas for improving the design of Westlake Park following news about crime and violence in the area.

A high end grab n go catering café called Gourmondo will open in Martin Selig’s 635/645 Elliott project.  Selig is encouraged that the amenity will attract tenants to the project that has been mostly empty since it was built a few years ago.

A walkway connecting Seattle’s Pike Place Market with the waterfront is expected to be completed in late 2015.  This should be an amazing amenity for the city when the Hwy 99 viaduct is torn down in 2016.

Seattle’s leading tenant representation firm, Flinn Ferguson, successfully recruited two of the region’s top brokers from JLL.

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