Below are comments and links to news articles and other topics relevant to the Seattle office space market from the month of August 2016.
Although the weather may be turning, there seems to be no slowdown in Seattle’s office space market. A new report from August predicts that Amazon will occupy twelve million square feet of space by the year 2022, which is 20% more than projected two years ago.
Also in August, the exterior of the new Madison Centre began to take shape. The entry will feature a 70 foot wide and 60 foot tall glass rotunda. The 746,000 square foot building is scheduled to open in the second quarter of 2017.
Starwood capital released new renderings of the Macy’s renovation in downtown Seattle. The building located at 300 Pine, is being updated to include a rooftop deck and will have more than 300,000 square feet of office space available space.
Martin Selig is reportedly downsizing the scope of his development project on the former Federal Reserve building site. Fillings show that Selig now plans to add eight stories to the existing structure, totaling 125,000 square feet of office space. Previous plans had shown as many as 44 floors added to the historic building at 1015 2nd Ave, which must be kept intact.
Unico unveiled recent updates to the “Speakeasy” type bar on the 35th floor of Smith Tower, which offers visitors a glimpse into the building’s historic past. In addition, a new Tenant amenity floor has been added on 22.
There was no news of significant office building sales in August.
Darigold will be moving its headquarters from South Seattle to the Georgetown neighborhood where it has leased 37,000 square feet in the newly renovated Georgetown Squared. Darigold will join Anderson Construction, ClearResult, and OpenSquare which have all recently signed leases in the building.
For the first time in several months, there seems to be a few signs of a slowdown in the local and global economy. In the second quarter, 18% of venture capital investments valued a company for less than the previous financing round. This so called “down round” represents nearly triple the amount as previous quarters, in a sign that the VC market is cooling.
In related news, Redfin released a report about residential real estate indicating that price bidding wars may be slowing down as housing inventory increased 7.6% in July. However, Seattle is still tied for Denver as having the lowest inventory in the nation and is still very much a seller’s market.
The average rental price in Seattle jumped 8.4 % in the last year, making the region the second highest for rent growth in the nation.
There were a few articles in August pointing to the fact that Seattle’s economy is incredibly healthy and one of the fastest growing in the nation. A new report from Indeed shows Seattle is the highest paying city in the nation for software engineers, data analysts, and quality analysts when factoring in the cost of living.
Thankfully, there was no news of another delay this month in the construction of the tunnel that will replace the Alaskan Way viaduct along Seattle’s waterfront. The WSDOT did release a video showing how each 36,000 pound piece of the tunnel is constructed and pieced together.