Seattle Office Space News – November 2013

News

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

OFFICE LEASES

After years of speculation, it was finally confirmed that Bank of America has restructured their lease at 800 5th Avenue in Seattle’s central business district.  The bank leases about 780,000 square feet under a 35-year deal that expires in 2016. Of that amount, the bank subleases 270,000 square feet and occupies 510,000 square feet, according to bank spokeswoman.  The rumors are that the bank gave back roughly 200,000 square feet and now only occupy 310,000 square feet of the 934,000 square foot high rise.

Throughout most of 2013 it has been rumored that Amazon will be leasing almost all of 5th & Bell and Blanchard Plaza, two office buildings in the Denny Regrade.  If the transaction closes, the fast growing online retailer will take another 275,000 square feet off of the market near their campus in South Lake Union.  Amazon currently leases over 2.2 Million square feet in Seattle and has plans to develop another 4 Million square feet.

The Washington State Department of Commerce has leased 205,000 square feet at the Pacific Medical Center for the nursing and healthcare programs of Seattle Central Community College.  The former Amazon headquarters atop Seattle’s Beacon Hill will now be roughly 75% leased.

The Georgetown area of South Seattle got a boost when Sur La Table announced the lease of roughly 50,000 square feet for their corporate headquarters.  The space at 6100 4th Avenue South in a building owned by Benaroya Co. will include office space, a mock retail store, a rooftop deck and a test kitchen.

BUILDING SALES

Talon Private Capital and Prudential have begun marketing 1800 9th in downtown Seattle for sale.  The 312,700 square foot office building recently underwent a major renovation designed by LMN Architects after Amazon signed a lease for roughly 200,000 square feet earlier this year.  Talon bought the building in 2011 from Regence who leases roughly 30% of the 97% occupied building.

One of the buildings that housed the former headquarters of the Seattle Times was purchased by Omni Group out of Vancouver B.C for $29 Million.  The block bounded by Fairview and Boren avenues north and John and Thomas streets is part of an assemblage by Omni Group that is planning redevelopment based on new zoning rules allowing for taller buildings in the South Lake Union area of Seattle.

PROPOSED DEVELOPMENTS

13 Coins announced it will be opening its first new restaurant in 40 years at Stadium Place, the 1.5 million-square-foot mixed-use complex in Pioneer Square developed by American Life.  The restaurant will occupy 9,500 square feet in the East block of the complex, which will also include 680,000 square feet of office. Construction is expected to begin in the middle of next year and be done in the summer of 2016.

Development of Stone34, the 129,000 square foot office building at 34th & Stone Way in Seattle’s Fremont neighborhood, is progressing nicely.  The future headquarters for Brooks Sports was designed by LMN Architects and is being built by Skanska

R.C. Hedreen’s plans to develop a $500 Million mixed use project at the Greyhound terminal block, bounded by Eighth and Ninth avenues and Stewart and Howell streets, is on hold.  Despite confidence that they had city approval for the 2.1 Million square foot project, new guidelines and requirements presented by the city recently has frustrated the developer.

Sabey Corporation has been chosen by King County to redevelop portions of Harborview Hall, a 10 story building located at 326 Ninth Avenue on First Hill.  The plans are to demolish parts of the 82 year old building and add new a medical office building and a landscaped plaza. As part of the project, Sabey plans to add an extra floor and build a seven-story addition.

Legacy Companies announced plans to redevelop the century old Pine and Value Village Buildings on Capitol Hill. Pine Building is an 18,200 square foot building at 1021 East Pine Street and Value Village Building is a 36,900 square foot building at 1525 11th Avenue.  The plans are to create a mixed-use project with office, ground-floor retail, and residential components. The architect on the project is Ankrom Moisan.

PROPOSED ARENA PROJECT

Analysis from Private Valuations Inc. of Bellevue is suggesting that the proposed NBA and NHL arena in Seattle’s SODO area will end up costing Seattle tax payers roughly $732 Million in tax breaks and other services.   The study was paid for by Seattle attorney Cleveland Stockmeyer who opposes the arena plans.  There has been no recent news about potential NBA teams that could occupy the arena.

ECONOMY

The Urban Land Institute and PwC released their ‘Emerging Trends’ report for 2014.  The report suggests that Seattle is the 4th best market in the country to invest thanks to foreign investment interest and growth in the tech industry.  Seattle ranked 7th in both development and homebuilding.

OTHER NEWS

After 25 years, the façade of 1201 3rd will be cleaned.  The process is to take 3 years.

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