Seattle Office Space News – November 2015

News

Below are comments and links to news articles and other topics relevant to the Seattle office space market from the month of November 2015.

OFFICE DEVELOPMENTS

News of new office development continued in November of 2015.  New details were released for the proposed 101 mixed use project in downtown Seattle by Miami based Crescent Heights. The building, nicknamed 4C, would be the tallest on the West Coast and would contain retail, office and hotel space.

Kevin Daniels of Daniels Real Estate is developing the 43 story Mark at Fifth and Columbia and is confident he will have leased space by early next year.  Together with the new Madison Centre project across the street, there will be nearly 1.3 million square feet of office space added to the intersection. It appears that no leases have been signed for either project.

BUILDING SALES

Heading in to the end of the year, investment money continued to flow in to Seattle especially from foreign markets. Hong Kong based Great Eagle holdings purchased the historical Dexter Horton Building at 821 2nd ave for $124.4 million or $369.69 per square foot. Just two years ago the building was purchased for $76.4 million.

New York based Brickman Real Estate purchased a new building in Pioneer Square months after selling its previous holding at 111 S. Jackson Street. The Olympic Block was acquired for $22.4 Million or $317.73 per square foot.

Unico properties continued its buying spree in Seattle in November. The Seattle based company purchased 701 Dexter for $17.7 million or $285.48. With this latest transaction, Unico has spent nearly $139.5 million in the South Lake Union submarket.

OFFICE LEASES

In very disappointing news to Seattle Developers, Safeco Insurance announced it will consolidate into its existing building, the Safeco Plaza at 1001 4th Avenue. The company will occupy twenty-six floors or 500,000 square feet in the building by the end of 2016. Safeco would have been the perfect tenant for some of the speculative office space coming to the market in the central business district.

Seattle Metropolitan Credit Union capitalized on the red hot commercial real estate investment market by selling their building at 801 3rd Avenue and leasing space elsewhere. After operating on 3rd for several decades, the longstanding Seattle institution will move in to 43,500 square feet at the Home Plate Center at 1521 1st Ave S.

ECONOMY

The US bureau of Economic Analysis reported that the Seattle is the fourth richest city in the nation at an average GMP of $75,874.  With high paying job growth comes a massive population increase and thus The Puget Sound Regional Council predicts that another one million people will live in the region by 2040, outpacing the growth of San Francisco.

Contrary to most reports we have seen lately, a study by Mortenson Construction indicated a slight softening in the construction industry. The cost of building was up .4% from Q2-Q3, matching the lowest increase since the summer of 2013. However, the report cautioned this is is only data from one quarter and can not be taken as evidence of a larger slowdown.

TUNNEL/VIADUCT

In a rather slow month for Viaduct and tunnel news, the WSDOT reported that the viaduct has sunk slightly near Seneca Street. The sinking was less than a half inch and the WSDOT insists the structure is still safe to travel on.

OTHER NEWS

Here are looks inside the new offices of REI, and Facebook.

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