Seattle Office Space News – January, 2013

15/ February 2013

Below are comments and links to news articles and Newsother topics relevant to the Seattle office space market from the month of January 2013.

Excitement continued to build about the prospect of Seattle getting a NBA team in January. Here are some new images of the proposed arena in SODO.  The International Longshore and Warehouse Union continues to oppose

the arena being built there.  Others are also making an effort to block the arena deal.  Despite the backlash, investor Chris Hansen who has the Sacramento Kings tied up continues to acquire land in the neighborhood.

There has been lots of discussion about the rezoning of the South Lake Union neighborhood to allow for taller buildings.   This article includes pictures of how views might be affected.  If the rezone is allowed, Vulcan plans to build a 12 story, 290,000 square foot building there.  Some city planners continue to cry out against the rezone and the Seattle City Council is also concerned.

There was a fair amount of news in January providing indication that office building owners are confident about the market continuing to tighten.  First, Capstone is going spec on a 240,000 square foot 10 story office building at 1101 Dexter.  The building should be finished in early 2015 and could also be used as a lab facility by life science users.

The owners of the site at 5th & Columbia have switched back to a plan to build office space along with hotel. Daniels Real Estate and equity partner Stockbridge Capital Partners are going spec this fall on the $400 million 660 foot tower that will include more than 500,000 square feet of office.  The project scheduled for completion in 2016 will be the tallest building built in Seattle for more than 20 years.

Urban Visions has switched their focus and now plans to make their 325 foot tall building at 2nd and Pike mostly office.   Plans for the building will include 140,000 square feet of office, 20 apartments, 15,000 square feet of retail and 4 levels of parking.

Vulcan has been chosen as the developer for Yesler Terrace which will include up to 5,000 residences, 900,000 square feet of office space and 153,000 square feet of retail and community space.

It didn’t take long for the former Schnitzer execs who formed a new Trammell Crow office in Seattle to make an acquisition.  They purchased a 1.4 acre site 1124 Columbia Street in Seattle’s First (Pill) Hill for $42.6 million and plan to develop 190,000 square feet of medical office.

The Union Station project continues to fill up with news lease that Intel signed a lease for 50,000 square feet at 705 5th.  After inked deals by Intel and Avvo the project is now 76% occupied.

Online real estate services company Zillow continues to expand at Russell Investments Center.  They took another ~22,000 square foot floor in addition to the ~66,000 square feet they already occupy there.

As always, Amazon’s expansion plans were in the news this month as the Seattle Department of Planning gave conditional approval for a new two building project between Westlake and 9th Ave N.  The buildings will total 377,000 square feet.

Skanska broke ground in January on the 120,000 square foot build to suit for Brooks Sports in Fremont.

Kilroy Realty purchased the Westlake Terry property for $170 million from Vulcan and Group Health.  The price of the 317,7000 square foot building occupied by Microsoft, Group Health, and retail tenants equates to $535/SF.

A surface parking lot at 5th & Stewart hit the market for sale in January. The zoning for this land allows for a 500 foot tower.

Finally, the U.S. Army Corps of Engineers won an award for green development of their 209,000 square foot headquarters in Seattle.

Written by // Jade Rice