TENANTS REMAIN ACTIVE
Tenants have leased 8.0 million square feet (msf) in the four most recent quarters, on par with the region's long-term average.
AVAILABILITY RATES INCH HIGHER
Seattle’s overall availability rate inched up by 10 basis points to 13.8%. The Class A availability rate rose by 30 basis points to 12.2%, due primarily to a spike in the Southend's availability rate.
SPIKE IN ASKING RENT
The overall asking rent rose by 2.7% to $36.40. The Class A average rent fell slightly, dipping by 1.4% to $46.29 as new product continued to lease up. Asking rent for some space in the newest properties is pushing into the mid-$50/sf range.
SALES SPIKE
Office property sales during the first seven months of the year totaled $3.4 billion, a 67% increase compared to the first seven months of 2017.
"Amazon, Google, Facebook and WeWork were all active in Seattle's office market in recent months. As these companies absorb entire buildings at a time, the sense of urgency among larger tenants to secure big blocks of space intensifies. Competition for the largest Class A space is brisk, but smaller and mid-sized tenants have more options across most of the market."
Eric Leland, Senior Managing Director