Seattle Office Space News – February 2016

News

Below are comments and links to news articles and other topics relevant to the Seattle office space market from the month of February 2016.

OFFICE DEVELOPMENTS

Hudson Pacific Properties to bring some needed Class A office space to the Pioneer Square sub market.   The announcement suggests that construction will start within the next couple of months on the  160,000 square foot project at 450 Alaskan Way.  So far, there have been no pre-leases have signed.

In the Central Business District, the mega 102 story skyscraper planned by Crescent Heights, has been downsized from 102 stories to 100 stories to comply with a FAA injunction.  Initial filings show a 2017 start date for the half block mixed use project on Fourth Avenue between Cherry and Columbia.

Just down the street, the largest development currently under construction in Seattle, Madison Centre has received a $150 million equity deal. Developer Schnitzer West has joined with Cornerstone Real Estate Advisors on the equity portion and has closed on a construction loan with Blackstone Debt Strategies. The 754,000 square foot office project is scheduled for completion in spring of 2017.

Seattle developer Greg Smith of Urban Visions hopes that he can attract another tech tenant to a new building where Amazon once had space. The Launch Pad at 1516 Second Ave will be 170,000 square feet of creative space and is in the initial design phase.

Martin Selig will also begin construction on a project in the Ballard submarket this month. The 200,000 square foot building at the intersection of 15th and Market Street already has leases signed for the top two floors, although Selig declined to say who the tenant was.

BUILDING SALES

Seattle’s landmark Post Intelligence globe building has a new owner. Credit Suisse Group purchased the building for $40.4 million from Legacy Partners. That price is just over $397 per square foot for the 101,750 square foot property. The Landmark Globe is not part of the sale and is planned to be brought to MOHAI although a timeline has not been set for the move.

In its latest disposition, Vulcan has sold the commercial portion of Alley 24 on Yale and John Street to Met Life. Met Life paid $129.4 million or $600 per square foot for the 215,000 square foot office space.  Vulcan’s total sales in the past few years equates to nearly $2.93 billion.

A building mostly occupied by Amazon at 2001 8th Ave, sold for $370 Million or $740 per square foot to Rreef property Trust. Rreef is part of Deutsche Asset & Wealth Management and this is the second property they have acquired in the region recently.

OFFICE LEASES

This month, cloud company Oracle continued to grow its presence in Seattle by expanding to 90,000 square feet at the Century Square building in downtown Seattle. In addition, Qumulo announced an expansion in to 70,000 square feet at Century Square.

In anticipation of its move to the Seattle waterfront, Expedia has leased space along Elliot. The travel company signed a lease for 38,000 square feet at 645 Elliott owned by Martin Selig and will use the space to test the location and move from the Eastside.

ECONOMY

In no surprise, the Seattle area economy continued to show strong indicators even as national and international stock markets remained stagnant. A report by John L. Scott showed that year over year median home prices were up nearly 21% for condo sales in Snohomish county with other areas following closely behind. The report also indicated that the number of homes selling within 30 days is twice the amount of a normal “healthy” market.

The City’s job market is currently ranked the fourth hottest in the Nation according to CareerBuilder and is one of the main reasons the housing market is on fire.  Another indicator showed that Seattle is still a top moving destination in the country. Penske Truck Rental ranked Seattle as the 8th most popular moving destination, dropping slightly from 6th last year

There have been significant conversations around the revitalization of the central business district and several statistics confirm this statement. The City’s 12 greater downtown neighborhoods are the fastest growing in the state with nearly 70,000 people calling the core home. There are 46 active construction projects in this submarket which will add to the amount of bars, restaurants, and other entertainment that will stay open long after the work day ends. At the same time, the CBD has added nearly 30,000 jobs since 2010 which also helps to propel growth.

Finally, with rising rent for commercial space this article profiles five popular trends in office space design including: Integration, culture and the use of open space.

OTHER NEWS

For pictures and more information about King 5’s very tech friendly Sodo office click here.

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