LEASING HOLDS STEADY
Tenants have leased 6.9 million square feet (msf) in the four most recent quarters, on par with the region's long-term average.
AVAILABILITY RATES DROP
Seattle’s overall availability rate fell by 70 basis points to 11.2%. The Class A availability rate decreased by 60 basis points to 8.7%. Compared to a year ago, the Class A rate has fallen by 260 basis points.
ASKING RENT JUMPS
Overall regional asking rent was flat, inching down from $31.42 to $31.41 in the first quarter. The Class A rent rose by 2.3% to $41.56, though, and has spiked by 8.0% year-on-year.
SALES ACTIVITY INCREASES
Office property sales during the last six months (through February 2018) totaled $2.0 billion, a 5% increase compared to the previous six-month total of $1.9 billion.
"There was no relief in the challenging conditions that larger tenants continue to face in Downtown Seattle and Bellevue. The supply shortage is not as acute in suburban Seattle. Additionally, smaller tenants still have more options to consider even in prime CBD properties. Meanwhile, potential passage of an employee head tax could create more impetus for tenants, including Amazon, to consider leasing in Bellevue or Tacoma."
José Oncina, Senior Managing Director