SOURCE: Cushman & Wakefield | Commerce
SEATTLE, WA--(Marketwired - Oct 30, 2013) - The Seattle-Tacoma-Bellevue Metro continues to outperform the national commercial real estate market according to new data by the Seattle and Bellevue branches of Cushman & Wakefield | Commerce. The firm released its most recent Marketbeat Snapshot reports detailing the Seattle and Bellevue areas' market status.
The entire market has seen a decrease in vacancy and increase in direct asking rents which shows continued strength and economic upturn. Large construction projects in the Bellevue area will create jobs and bring more than 6 million square feet of new space to the market.
"We are very pleased to see the consistent economic upturn in the Seattle and Bellevue market," said Dave Magee, Cushman & Wakefield | Commerce Senior Director and Managing Broker of the Washington Region. "The steady decline in vacancy rates and rise in asking rents are just two of the indicators of strength that sets the Puget Sound market apart from others nationally. Additionally, economic growth is expected to continue its upswing due to millions of square feet of construction underway bringing thousands of jobs to the market."
Seattle CBD Office Snapshot
Seattle CBD has seen a decrease in vacancy rates by 1.0 percentage point (pp) on a year-over-year basis. The biggest improvements occurred in Denny Regrade and Pioneer Square/International District, decreasing by 4.5 pps and 7.2 pps respectively. Year-to-date leasing activity has increased in addition to direct asking rents which increased by 3.2%. Overall, Seattle CBD will continue to see rental rates increase and vacancy rates decrease with tech companies such as Amazon, Zulily and Google continuing to shape the economic and physical layout of the Puget Sound.
Seattle Suburban (Southend) Office Snapshot
The Southend market has seen little movement over the past several quarters, although vacancy rates have decreased by 0.3 pps and average asking lease rates have increased by 1.7%. The Southend looks to remain consistent throughout the coming quarters but should see a meaningful recovery in 2014.
Seattle Industrial Snapshot
The Kent Valley market has seen a 0.3 pp decrease in vacancy rates on a year-over-year basis. Direct asking rents have seen a dramatic increase of 17.8% to $0.53 per square foot per month (psf/mo) driven by rent increases in High Tech and Office Services spaces. Several large construction projects are currently in the pipeline for Kent Valley. Overall, the market continues to see steady improvement and is expected to fill large vacancies quickly as new construction comes online.
Bellevue Office Snapshot
On a year-over-year basis, vacancy rates have remained the same while direct asking rents have increased by 3.1%. Within the Bel-Red corridor, over 6 million square feet (msf) of commercial, retail, residential and underground parking space projects are currently underway. Additionally, Google is nearly doubling its Kirkland, WA space size and the University of Washington, Bothell campus began construction on a new building valued at $62M. The Bellevue Office market will continue to improve upon trends throughout the year and is expected to bring a significant increase in jobs to the market.
Bellevue Industrial Snapshot
Overall vacancy rates continue to decrease in the Eastside/Northend markets by 0.9 pps on a year-over-year basis. Direct asking rental rates have increased by 2.3%, increasing for the first time since Q2 12. Port activity in the Puget Sound area is mixed with the Port of Seattle experiencing decreased activity and the Port of Tacoma seeing a significant increase in activity over the same period. Overall, vacancy rates are projected to continue to decline through the end of the year, port activity should increase.
The full reports for each of these markets, as well as historical reports are available for download at: http://www.comre.com/research.cfm
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About Cushman & Wakefield |Commerce
Cushman & Wakefield |Commerce, an independently owned and operated member of the Cushman & Wakefield Alliance, has been the leading provider of real estate brokerage services for more than 30 years. Headquartered in Salt Lake City, the firm has offices throughout Utah, Nevada, Idaho and Washington. It offers consulting, brokerage, tenant and landlord representation, property and facilities management, and valuation services to corporations, institutions and investors throughout the Intermountain West and Pacific Northwest. For more information, and for property listings, broker information, market category reports and more visit www.comre.com.
About Cushman & Wakefield
Cushman & Wakefield is the world's largest privately‐held commercial real estate services firm. The company advises and represents clients on all aspects of property occupancy and investment, and has established a preeminent position in the world's major markets, as evidenced by its frequent involvement in many of the most significant property leases, sales and assignments. Founded in 1917 it has 243 offices in 60 countries and more than 14,000 employees. It offers a complete range of services for all property types, including leasing, sales and acquisitions, equity, debt and structured finance, corporate finance and investment banking, corporate services, property management, facilities management, project management, consulting and appraisal. The firm has more than $4 billion in assets under management through its wholly‐owned subsidiary Cushman & Wakefield Investors. A recognized leader in local and global real estate research, the firm publishes its market information and studies online at www.cushmanwakefield.com/knowledge.