Seattle Office Space News – May 2014

News

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

BUILDING SALES

720 Olive is tied up by a partnership between Talon Private Capital and Prudential Realty Group.  The 301,000 square foot – 20 story building is expected to be sold by Hines for $120 Million or ~$399 per square foot.

PROPOSED DEVELOPMENTS

The University of Washington is getting serious about redeveloping a portion of Rainier Square in downtown Seattle.  First, the UW selected Wright Runstad as the developer for the 1.2 Million square foot mixed use project.  Next the UW distributed conceptual design renderings of the building that will include office, hotel and retail space.  Wright Runstad has indicated that it will cost up to $10 Million just to get through the design and permitting phase of the project.

Vulcan Real Estate has more plans to develop different product types in South Lake Union.  After having already built 5.2 Million square feet of space in the neighborhood, Vulcan has several sites ready for further development.  Future projects will be taller and more dense after the Seattle City Council passed a rezone last year.

Urban Visions is still hoping to land an anchor tenant for their 200 Occidental project that will include 155,000 square feet of office and 15,000 square feet of retail.

TUNNEL/VIADUCT

The stalled machine, known as Bertha, that is creating the tunnel that will replace the Alaskan Way viaduct is in the process of repair.  Drill rigs are digging a 120 foot-deep pit so they can access and fix the clogged cutter head.

ECONOMY

There was lots of news in May providing economic indicators for the Seattle area.  According to the Census Bureau, Seattle is the fastest growing city in America in terms of population.  The Seattle office market has been fortunate to be supported by strong job growth in the tech market while wages for these positions are historically high.

Although the amount of residential real estate sales have decreased,  brokers say there are more listings and that demand is exceeding supply as prices continue to rise.  Despite many positive statistics in the residential real estate market, it seems that the dramatic price increases may be on the verge of steadying.

OTHER NEWS

The city of Seattle is advertising available office space above the historic King Street Station in Seattle’s Pioneer Square neighborhood.  The rareness of the 23,500 square foot office space leaves the city feeling confident that it will lease quickly.

Finally, competitive office buildings throughout Seattle have been racing to build amenities including in-building workout rooms, shower facilities & bicycle lockers/storage.  The Dexter Horton building has created a new type of amenity – a dog bathroom.

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