Cushman & Wakefield | Commerce Reports Strengthened Puget Sound Commercial Real Estate Market in Q2
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
About Cushman & Wakefield |Commerce
Cushman & Wakefield |Commerce, an independently owned and operated member of the Cushman & Wakefield Alliance, has been the leading provider of real estate brokerage services for more than 30 years. Headquartered in Salt Lake City, the firm has offices throughout Utah, Nevada, Idaho and Washington. It offers consulting, brokerage, tenant and landlord representation, property and facilities management, and valuation services to corporations, institutions and investors throughout the Intermountain West and Pacific Northwest. For more information, and for property listings, broker information, market category reports and more visit www.comre.com.
About Cushman & Wakefield
Cushman & Wakefield is the world’s largest privately‐held commercial real estate services firm. The company advises and represents clients on all aspects of property occupancy and investment, and has established a preeminent position in the world’s major markets, as evidenced by its frequent involvement in many of the most significant property leases, sales and assignments. Founded in 1917 it has 243 offices in 60 countries and more than 14,000 employees. It offers a complete range of services for all property types, including leasing, sales and acquisitions, equity, debt and structured finance, corporate finance and investment banking, corporate services, property management, facilities management, project management, consulting and appraisal. The firm has more than $4 billion in assets under management through its wholly‐owned subsidiary Cushman & Wakefield Investors. A recognized leader in local and global real estate research, the firm publishes its market information and studies online at www.cushmanwakefield.com/knowledge.