Seattle Office Space News – June 2014

News

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

BUILDING SALES

Only a couple of small office buildings were reported to have traded hands in June.  First, the historic retail and office building located at 1101 E Pike Street in Seattle’s Capitol Hill submarket sold for $5.4 Million.  Liz Dunn bought the 18,725 square foot 103 year old building from an LLC managed by Susan Singleton for what equates to $288 per square foot.

Also, John & Shari Behnke bought the 13,400 square foot office building at 123 3rd Avenue South in Seattle’s Pioneer Square submarket for an undisclosed price.  The philanthropic couple plans to open a new arts and cultural center for non-profits on the property.

OFFICE LEASES

The rumors that Amazon would lease an additional ~568,000 square feet in four different buildings were finally confirmed in June.  The buildings, which are near Amazon’s 5.2 Million square foot campus in the South Lake Union submarket, are:

  • Blanchard Plaza – 2201 6th Ave (Amazon leased ~255,000sf of the 300,508sf building) – owned by Shorenstein Properties
  • 635 Elliott (amazon leased all ~187,000 sf of the building) – owned by Martin Selig Real Estate
  • 5th & Bell – 2301 5th Ave (Amazon leased ~100,000 on floors 1-3) owned by Hines
  • The Supply Laundry Building – 1265 Republican Street (Amazon leased ~26,000sf of the 36,000sf building) – owned by Vulcan Real Estate

Facebook is reportedly searching for a new office space of about 80,000-100,000 square feet, which should fit well over 500 people.  This signifies a good amount of growth for the Bay Area company which only employed 90 people in Seattle two years ago.

Also, HBO’s Seattle engineering office supposedly took another floor in Met Park East at 1730 Minor Avenue.  The typical floor size in the building is just over 18,000 square feet.

PROPOSED DEVELOPMENTS

There continues to be a lot of news about potential office development in Seattle.  First, Daniels Real Estate is showing signs that they will be going spec on 5th & Columbia, the proposed 45 story office building and hotel project.  ‘Drilling and other activity’ began in mid June with the official groundbreaking ceremony planned for August or September.

Also, renderings were revealed by Vulcan Real Estate for their proposed full block development at the corner of Denny Way and Westlake Avenue North in South Lake Union. The plans call for a 41 story apartment tower with 500 units and an 18 story office building.

The Washington State Convention Center is moving forward with a 1.2 Million square foot expansion plan that is being managed by Aecom and Pine Street Group.  The expansion could include office, a hotel project and lots of exhibit space, meeting rooms and ballrooms.  Some are anticipating that the development could lead to other projects in the neighborhood.

Next, Alexandria Real Estate Equities plans to develop an 11 story office/lab project at 400 Dexter Avenue North in South Lake Union.

Lease Crutcher Lewis received permits in June for the renovation of the 63,768 square foot office building at 2200 Western.  Tenants will include Lease Crutcher Lewis, Weinstein A/U architects, and HasOffers.

Lastly, Hunters Capital is starting a $28.4 Million renovation of 501 East Pike Street in Seattle’s Capitol Hill neighborhood.  The plans are for 7,000 square feet of office, 7,000 square feet of retail and 89 apartments.

TUNNEL/VIADUCT

Bertha, the machine built to bore the tunnel that will replace the Alaskan Way Viaduct along Seattle’s waterfront, has been stalled for months and isn’t expected to be repaired until March of 2015.  Despite the setback work continues to manufacture the 14,000 curved concrete segments that will line the tunnel.

ECONOMY

Indicators persist that the Seattle area economy remains one of the strongest in the nation.  This article provides statistics indicating that the average Seattle area worker earns 27% more than the national average.

Also, the housing market in the Seattle area remains hot as median prices in King County have risen 6% above this time a year ago.

OTHER NEWS

Unico Properties, upon the expiration of their 60 year land lease, has retained the management and leasing duties of the Metropolitan Tract.  The 1.6 million square foot contiguous parcel in the central business district has 1.1 million square feet of commercial and residential space and is owned by the University of Washington.

Many developers are continuing preparation and planning for when the viaduct is removed.  The Seattle Design Commission has approved a schematic design of an Overlook Walk which will connect the Pike Place Market and Victor Steinbrueck Park. Also, the city of Seattle will potentially buy $5-$7 Million of artwork for the new 20 acres of parks and public spaces there.

This report highlights the costs of Chris Hansen’s 12-acre holdings in Seattle’s Sodo neighborhood where he plans to develop an NBA and NHL arena and surrounding retail.  The 217,575 square feet of commercial space currently on the properties is apparently earning Hansen a measly 2.6% return while he waits to land an NBA team.

TRANSIT

Plans for a proposed First Avenue streetcar were to be up for a vote by the Seattle City Council.  The $100 million project would link up South Lake Union with Pike Place Market and the First Hill streetcar lines.

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One Response to Seattle Office Space News – June 2014

  1. Thanks for putting this together. Well done as usual.

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