October News

6/ November 2012

NewsBelow are comments and links to news articles and other topics relevant to the Seattle office space market from the month of October 2012.

Amazon stole the office space headlines again in October with the news that they are purchasing their 11 building, 1.8 million square foot campus in South Lake Union from Paul Allen’s Vulcan Real Estate for $1.16 Billion.

Seattle ranked number 54 out of America’s 102 largest cities according to a report by On Numbers Economic Index.  The study is developed by an 18-part formula that assesses private-sector job growth, unemployment, earnings, housing-price appreciation, and construction and retail activity.

Here is an article indicating that Amazon is responsible for half of the office space absorption in Seattle since 2010.

Good news for Seattle’s Denny Triangle neighborhood that Tom Douglas is opening a 4 part food venue on 6th Ave.

Mike Nelson and Craig Dobbs, formerly of Seattle office developer Schnitzer West, aligned with Trammell Crow to invest capital in acquisition and development.

Seattle based Gibraltar sold a 36,000 square foot historic office building in Seattle’s Pike Place market called the AE Doyle building for $8.55 Million to Fana Group of Companies.  The largest tenant in the building is SEOMoz who is rumored to be pursuing a relocation.

A couple of brokerage firms released market reports indicating that office vacancies are decreasing in Seattle.

Local developer Unico bought a building near Seattle’s waterfront for $15.88 Million.  The building is currently occupied by the Art Institute of Seattle and is near the Hwy 99 viaduct that is scheduled to be demolished and replaced by a tunnel.

A property on 5th and Virginia went on the market for sale.  The site near Amazon’s future new 3 Million square foot campus addition will likely be redeveloped into a high-rise.

1201 Third, an icon of Seattle’s office space skyline, was tied up by a partnership between Met Life and Clarion for $550 Million.  The 1.1 Million square foot building is home to law firm Perkins Coie and has over 250,000 square feet of available space.  The seller is a partnership between Beacon Capital and Wright Runstad.

Talon private capital has been tasked  with the repositioning of a distressed 11 building portfolio comprised of over 2.6 Million square feet that is 37% vacant.  The office portfolio has been tied up in bankruptcy proceeding for years as the former owner, Archon, chose not to service their debt.  Archon originally paid too much for the buildings on a flip by Beacon Capital after they purchased the Equity Office Properties portfolio in 2007.

Written by // Jade Rice