SEATTLE—July 19, 2013— A stronger office market is being created as a result of increasing employment spanning the Seattle-Bellevue commercial markets according to new data by the Seattle branch of Cushman & Wakefield | Commerce. The firm released its most recent Marketbeat Snapshot reports detailing the Seattle and Bellevue areas’ commercial real estate market status.
Seattle’s Central Business District (CBD) area has continued to show a drop in vacancy rates and is currently showing the lowest level of vacancy rates since the middle of 2009. The Bellevue Central Business District (CBD) market is also showing a steady decline in vacancy rates on the Eastside, although the rate of decline is showing slower than that of the Seattle CBD. The Northend, however, saw a slight increase in vacancy.
“We are very pleased with the growth of Seattle’s CBD, with the growth of Amazon in particular,” said Dave Magee, Cushman & Wakefield | Commerce Senior Director and Managing Broker of the Washington Region. “The region has seen mixed port activity but an overall increase in GDP, which should boost the demand at the Ports of Seattle and Tacoma. In addition, investment activity is expected to remain strong, especially in the Bellevue market.”
Seattle CBD Office Snapshot
Activity strengthened during Q2 13 with the expansion of Amazon and Zulily. Signing leases totaling 556,000 square feet (sf), these deals are having a great impact on the market. The Seattle-Tacoma-Bellevue Metropolitan Statistical Area (MSA) has seen a 1.9 percent unemployment rate decline during 2013 due to the expansion of companies in the area. This job growth should result in CBD expanding and outperforming other markets throughout 2013. Read the Report
Seattle Suburban (Southend) Office Snapshot
The Southend market has seen an overall decrease in vacancy rates on a year-over-year basis by approximately 1.0 percentage points (pps). Additionally, the Southend is expected to capture some of the momentum being seen by CBD as tenants look for alternate locations with lower lease rates. Read the Report
Seattle Industrial Snapshot
The Kent Valley market has seen a large amount of space completed in Q2 13 and has been able to absorb the new space and have a declining vacancy rate through the quarter. The market remains healthy and stable as average asking rental rates have remained nearly unchanged over the last year. With nearly 2 million sf of construction that will enter the market over the next 18 months, the Kent Valley market should remain strong and vacancy rates should continue on a downward trend. Read the Report
Bellevue Office Snapshot
On a year-over-year basis, vacancy rates have up ticked by 0.7 pps, mainly contributed to space being vacated at the Frontier Communications Building. With the regional employment growth expected to increase by approximately 2.7% through 2013, vacancy rates are expected to decrease slightly. Investment activity is projected to remain strong as market fundamentals improve. Read the Report
Bellevue Industrial Snapshot
Overall vacancy rates are continuing to decline at a slow and steady pace in the Bellevue Industrial market. Leasing activity remains strong and on a year-over-year basis, activity has increased by 13.3%. Additionally, no new construction is underway, pushing vacancy rates down through year end. Port activity has remained mixed in the region with the Port of Seattle seeing a decrease in activity and the Port of Tacoma seeing a significant increase on a year-over-year basis. Read the Report
The full reports for each of these markets, as well as historical reports are available for download at: http://www.comre.com/research.cfm