Cushman & Wakefield | Commerce Reports Strong Q2 2014 for Puget Sound Commercial Real Estate Market
SEATTLE—Aug. 19, 2014—The Seattle office of Cushman & Wakefield | Commerce released its Marketbeat Snapshot reports for Q2 of 2014 today. The reports detail the commercial real estate activity for the Seattle and Bellevue markets.
“We’re seeing a lot of cranes along the skyline and activity is heating up, particularly on the Eastside,” said Dave Magee, Market Leader for the Cushman & Wakefield | Commerce Washington Region. “Development companies are prepping land for construction and the race is on to build office space in the Bellevue area. Competition for space in Seattle is also on the rise and the market is expected to respond with increased lease rates looking forward.”
Seattle CBD Office Snapshot
The Seattle Central Business District continued to perform well and experienced a 1.2 percentage point decrease in the overall vacancy rate this quarter, dropping to 11.5 percent. Competition for space is heating up downtown which will likely cause the vacancy rate to drop into single digits and put upward pressure on lease rates.
Seattle Suburban (Southend) Office Snapshot
Leasing activity started off the year strong in the Southend office market, but the recovery has been sluggish compared to neighboring markets. That said, positive changes are starting to show and vacancy rates are down 0.6 percentage points to 19.5 percent.
Seattle Industrial Snapshot
While construction continues and vacancy rates are holding steady, the Kent Valley area saw a temporary decline in leasing levels and the overall vacancy rate slightly increased by 0.3 pp to 7.0 percent. However, increased leasing activity is expected in Q3 with large leases already signed shortly after the quarter ended.
Bellevue Office Snapshot
The Eastside market saw huge drops in vacancy in Q2 across all submarkets. In the past 12 months, the overall vacancy rate for Bellevue CBD dropped dramatically by 2.3 percentage points to
9.0 percent, while the Eastside Suburban market’s overall vacancy rate fell by 3.5 percentage points. New construction of 461,700 sf (929 Office Tower) broke ground in the Bellevue CBD.
Bellevue Industrial Snapshot
The vacancy rate continued to decline across the Eastside/Northend markets improving to 10.5 percent. The high tech sector was vigorous this quarter and led much of the leasing activity. Vacancy rates are trending downward, as they continue to do so, lease rates will begin to increase which may lead to expected new construction.
The full reports for each of these markets, as well as historical reports are available for download at: http://www.comre.com/research
Social Links Connect with Cushman & Wakefield | Commerce:
About Cushman & Wakefield | Commerce
Cushman & Wakefield | Commerce, headquartered in Salt Lake City, Utah, is an independently owned and operated member of the Cushman & Wakefield Alliance with offices throughout Utah, Nevada, Washington and Idaho. The firm partners with its sister company Cushman & Wakefield | NorthMarq to provide innovative commercial real estate solutions to occupier and investor clients, offering transaction services, capital markets services, occupier and investor services, and real estate advisory. Together the firms manage more than 52 million sq. ft. of retail, industrial, and office assets, have annual revenues of more than $100 million, and employ more than 750 professionals. Learn more at www.comre.com; www.cushwakenm.com. C&W | Commerce and C&W | NorthMarq are part of the Cushman & Wakefield platform, which is the world’s largest privately-held commercial real estate services firm with 250 offices in 60 countries globally. www.cushmanwakefield.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 250 offices in 60 countries, employing more than 16,000 professionals. 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. A recognized leader in local and global real estate research, the firm publishes its market information and studies online at www.cushmanwakefield.com/knowledge.