August News: Seattle Office Space

7/ September 2012

NewsBelow are comments and links to news articles and other topics relevant to the Seattle office space market from the month of August.

There seems to be a lot of buzz about plans for Amazon’s new development in South Lake Union.  Office tenants should be happy that Amazon is entering another build to suit rather than absorbing space from the rest of the market, which drives up rents.

It’s no surprise that Schnitzer wants to sell the rest of the block at 818 Stewart.  They already made a killing when they developed and sold 818 Stewart and 1918 8th.  Amazon leased most of 1918 8th.

Developer Touchstone is assembling land near South Lake Union to develop some office buildings.  It will be at least a couple years before any office development is complete.

Vulcan and Group Health put their co-owned building in South Lake Union on the market for sale.  This frees up capital for Vulcan to develop some of their other land.

The Puget Sound Business Journal posted this article about the Seattle office market tightening.  Rents are going up.

Seattle is apparently the 13th most expensive city to run a corporate HQ based on a study of the costs of labor, power, amortization, taxes and travel.

A plan to allow the Seattle Housing Authority to move forward with a mixed use development (including office) on First Hill got some press.

Some big leases happened in Q2 of 2012 in the area.

A study performed by PayScale shows that people between the age of 18-29 love working in Seattle.  This is mostly due to the growing technology and engineering community here.

A brokerage firm compared Seattle’s tech office market with 19 other markets and concluded that rents are stagnant.  The report indicates that rents in South Lake Union are increasing.   In my experience rents are going up throughout the city and especially in the types of spaces that tech companies like.

Lots of articles about Mercer street opening up to two way traffic in August.  So far it has made traffic worse.

Groundspeak has some cool office space in Fremont.

Double Down Interactive is growing fast and leased 30,000 sf at 605 Union Station.

The Razore family bought the Watermark tower in anticipation of property values increasing in the area once the viaduct goes down.

Chris Hansen bought another piece of land for his plan to bring back the Sonics.

Washington Holdings has more planned development for a site at 1818 Fairview in South Lake Union.

The biggest news of the month for the Seattle office market is that Vulcan put their Amazon campus in South Lake Union up for saleHere are some of my comments on that.

Written by // Jade Rice