Seattle Office Space News – November 2014

News

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

PROPOSED DEVELOPMENTS

Not surprisingly, Amazon was in the news related to office development in November.  Architects for the e-commerce company filed plans with the city of Seattle to build 3 more buildings near their headquarters in South Lake Union totaling 835,000 square feet. Amazon is the critical factor supporting the current construction boom in Seattle as they will occupy up to 10 million square feet of space within 5 years.

Urban Visions is dusting off plans for Stadium East, which would include 860,000 square feet of office space spread across seven buildings. The seven acre site is located at the south end of Seattle at the intersection of I-90 and Airport Way to the east of CenturyLink and Safeco fields.  The development company, led by Greg and Broderick Smith, is also revising plans for the full block site between Second and Third Avenues and Columbia and Marion Streets in the central business district.  Rather than a 77 story building, Urban Visions is now seeking city approval to build a 60-story high-rise at 888 2nd Avenue that will include up to 1.2 million square feet of office.  It remains to be seen whether Urban Visions will break ground on either project prior to having any pre-leasing.

Skanska USA Commercial Development is planning a 725,000 square foot office tower called 2&U at Second & University in the central business district of Seattle.  Skanska signed a long term land lease with the Samis Foundation for the site and the building is scheduled for completion in 2019.

Finally, the proposed office development at 9th & Thomas in Seattle’s South Lake Union is in design review.  Scott Redman of Sellen Construction is the owner of the site and is planning 153,000 square feet of office and 12,000 square feet of retail.

BUILDING SALES

The biggest office sale in November goes to Ivanhoe Cambridge, who is buying the two building office project at 1111 Third Avenue and 1100 Second Avenue from Walton Street Capital.  The Canadian pension fund is purchasing the 709,000 square foot project for $280 million or $395 per square foot blended.

Rockpoint Group of Boston sold the Pacific Building at 720 Third Avenue for $50.4 Million or $386 per square foot.  Brickman, a private equity firm based in New York, is the buyer for the mostly leased 130,500 square foot building.

Also, Shorenstein Properties put Blanchard Plaza on the market for sale in November.  The 15 story, 255,820 square foot office building at 2201 Sixth Avenue is 100% leased to Amazon.

Finally, Unico Properties is the reported buyer of the Smith Tower, a 257,000 square foot building at 506 2nd Ave in Pioneer Square.  The 100 year old building has 42 stories.

OFFICE LEASES

The biggest office lease reported in November belongs to online real estate company Zillow, who inked a deal for an additional five floors at 1301 2nd Avenue.  Zillow is now the largest tenant in the building as they occupy roughly 260,000 square feet on floors 29-40.

Like many other tech companies from the Bay Area, Apple is setting up shop in Seattle.  The tech giant is rumored to be leasing space at 1455 N.W. Leary Way in the Ballard submarket.

ECONOMY

Technology companies in Seattle are leading the surging economy.  This article provides some interesting data from E&Y on mergers and acquisitions of Seattle based companies.   Global technology M&A deal value was $73.7 billion in Q3 2014, which is a height not seen since the dotcom bubble.

The residential real estate market in Seattle remains strong as home sales are up 2.6% when compared to a year earlier.

OTHER NEWS

Finally, there were several articles in November providing a look into the office space of Seattle based companies including:  Redfin, Stoke StrategiesCompendium, and Howard S. Wright Construction.

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