The Seattle office market is coming to a dynamic year, featuring important delivery and development. According to the CommermerCialedge data, the subway from the beginning to August was ranked second in the gateway market, with 3.8 million square feet.
Microsoft plans to replace 12 old office buildings on the main campus of Redmond with 17 new office buildings with a total of about 3 million square feet. Rendering by Microsoft
Market transactions have increased tripled year -on -year. Nevertheless, the average price per square foot is still the lowest in the same large cities. Emerald City is also facing a vacancy problem, and 24.9 % of the office space remains vacant and is more than 5 % higher than the national average.
With the continued hitting of office sex, the increase in development is increasing concerns. As a result, switching from office to housing has been featured as a means of providing housing stocks in urban market while solving some of the concerns of office owners. Commercialedge has introduced tools to evaluate the possibility of reusing real estate in various markets. According to the data provider’s conversion feasibility index, Seattle is at the highest level and about 2.4% of office stock is likely to be converted.
2nd place in Japan
In the Seattle office category from the beginning of the year to August, about 3.8 million square feet office spaces were handed over to 10 properties, increasing four times from the previous year. These developments accounted for 2.1 % of the total stock of the subway.
An advertising technical company concludes a 68,880 square -foot rental contract at The Eight in Belview, Washington: Skanska
In the gateway market, Boston surpassed the Emerald City, the only office completion of about 4.3 million square feet. Los Angeles (731,234 square feet), Manhattan (2.9 million square feet) and San Francisco (1.9 million square feet) were on the other side.
Recently, Scanska has completed the 729,000 -square -foot office building “The Eight” in Belview, Washington. The 25 -story tower, which is expected to acquire LEED platinum authentication, has more than 80 % in advance before completion, and it can be seen that leasing contracts have also occurred. Classes with high -level amenities. A for assets.
Seattle has decreased ongoing development
The Seattle office is under construction of about 2.1 million square feet as of August. When completed, these developments will account for 1.4 % of the entire stock, which will slightly exceed the national average of 1.0 %.
Metro was delayed in the gateway market, and Boston (11.2 million square feet) gained attention again. Miami (2.8 million square feet), Manhattan (2.7 million square feet), and Washington DC (2.2 million square feet) were also strong.
Microsoft is still working on redevelopment of the main campus in Redmond, Washington, replacing 12 old office buildings with 17 new office buildings, has a total area of 3 million square feet, and the completion is scheduled for 2025. . The expansion of 1.1 million square feet was also planned, but was canceled last year.
Achieves more transactions at a fairly low price
Seattle’s first skyscraper, The Smith Tower, has recently changed its owner. Image provision: FreeStone Capital Management
As of August, the investment in Seattle’s office division was $ 399 million from the beginning of the year. Market assets were traded for $ 190 per square -foot, one of the lowest prices in the gateway metropolitan area.
Los Angeles ($ 437 per square) was the top, followed by Manhattan ($ 386 per square feet) and San Francisco ($ 278 per square feet). However, the subway exceeded the average national average of $ 173.
Last month, the Smith Tower, the first skyscraper built in Seattle, changed the owner. Goldman Sachs sold a 42 -story tower to a GT Capital local investor group. The area of the building was about 268,700 square feet, completed in the 1910s.
The vacancy rate of Emerald City continues to rise
Seattle’s office vacancy rate continued to rise this year, reaching 24.9 % as of the end of August. This figure is more than 5% higher than the US average. In the gateway market, San Francisco had the worst vacancy rate of 27.6 %, but Manhattan (16.6 %), Los Angeles (16.7 %), and Chicago (19.0 %) were good.
Tiktok has expanded the space of Lincoln Square North Tower by 150,000 square feet. Image provision: commercial edge
In June, Tiktok has decided to expand the office space of the 27 -story tower in Bell View downtown Lincoln Square North Tower. Social media giants will add 150,000 square feet to the already promised 132,000 square feet in January. The new space was previously borrowed by Microsoft, and Microsoft abandoned the office last December.
In addition, technology companies are still expanding their domain. Last month, an ad tech company concluded a 68,880 square -foot rental agreement by The Eight, one of the scans buildings in Belview. You will be moving in for the second quarter of next year.
The co -working department is equivalent to the national scale
As of August, Seattle’s co -working space consists of 2.9 million square feet shared spaces, accounting for 1.9 % of subway stocks. Only Washington DC (1.6 %) in the market exceeded the market, and Manhattan (2.3 %) and Los Angeles (2.1 %) were the opposite. However, subway numbers were slightly larger than 1.8% of the national average.
The Flex Office provider, which has the largest installation area in Seattle, is still 447,121 square feet and REGUS 420,608 square feet. EXTRASLICE (269,403 square feet) and Industrious (151,740 square feet) were followed by these companies.
