Seattle Office Space News – April 2014

News

Below are comments and links to news articles and other topics relevant to the Seattle office space market from the month of April 2014.

BUILDING SALES

Following a full building lease by Tableau Software, the former Sound Mind & Body Gym at 437 N 34th Street in Freemont closed on a sale for 11.6 Million in April.  First Western Development purchased the building from Richard & Vickie Harrington for roughly $232 per square foot.

Also, the 165,000 King (5) TV headquarters building at 333 Dexter Ave North was put on the market for sale.

OFFICE LEASES

Further confirmation that Amazon plans to lease 515,000 square feet in three different buildings was revealed when Interior Architects filed for buildout permits.   The rumor is that they will lease 228,000 square feet at 2201 6th Avenue, 187,000 square feet 635 Elliott and 100,000 square feet at 2301 5th Avenue.

The only other significant lease reported in April was that of Howard S. Wright Construction who will move into 20,000 square feet at 415 First Avenue North in Queen Anne.

In other news, the Interbay Work lofts in Seattle’s Ballard submarket is filling up.  The 105,000 square foot building located at 1631 15th Ave W and designed for startups and small companies is 40% leased as of early April.

Also, the Bullitt Center, Seattle’s greenest building at 1501 E. Madison in Capitol Hill, is 80% leased. After a year of operation the solar panels and rain water re-distribution systems in the 50,000 square foot building have proven to save on operating costs.

PROPOSED DEVELOPMENTS

Daniels Development, the owners of the proposed development at 5th & Columbia including 558,000 square feet of office, are eager to get started.  They have indicated that a July start date would be possible, but they are waiting for an anchor tenant.

C.D. Stimson Co. is ramping up marketing efforts for their 500,000 square foot office campus in Ballard.  The five building project at 5423 Shilshole Ave NW adjacent to the canal is also awaiting pre-lease.

Schnitzer West closed on a site at 501 Fairview Avenue North for $15.75 Million.  The plan for the South Lake Union location is to go spec on a 12 story building that will include 285,000 square feet of office and 6,000 square feet of retail.

TUNNEL/VIADUCT

Bertha, the stalled machine that will drill the 1.7 mile tunnel to replace the Alaskan Way viaduct, is undergoing the process of repair.  The hope is that operations will resume in March of 2015, which pushes back the opening until November of 2016.

ECONOMY

There were a lot of indications reported on the health of the regional economy in April.  Demand for residential real estate in the area is greater than the supply as prices rose 12 % over the last year and .6% last month.  Accrding to Redfin, 41% of homes in Seattle are selling in 2 weeks or less, which crushes the national average of 22.5%.  Salaries were up 1.1% in Q1 and Seattle’s wage growth rates second in the nation.  To top it off, PricewaterhouseCoopers reported that venture capital investments have reached heights that are similar to the dot.com bubble in Q2 of 2001.

OTHER NEWS

Plans continue to develop for the redesign of Seattle’s waterfront following the removal of the Alaskan Way viaduct.  The critical design elements being considered include the creation of pedestrian connections between the city and the water in a visually appealing way.

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