APRIL SHOWERS BRING MAY TOWERS

Big leases lurk downtown

Pictured above: the new "F5 Tower" towering over the Rainier Club.

 

The Three Worlds of Seattle

 

The real estate market downtown is extremely interesting right now. There are 3 worlds: new construction, existing "big blocks" of space, and everything else. New construction is getting sucked up by Amazon, who is now rumored to be looking at the Rainier Square development in the heart of the city.  This is significant since Amazon would be crossing south of Stewart Street into the downtown core.

 

Most recently F5, another tech titan, announced that it will be leasing "The Mark" (the new sexy highrise at 5th & Madison). This leaves just Madison Centre as the only new tower coming online downtown in the next few months.

 

For existing "big blocks" (spaces greater than 50,000sf) there are a lot downtown that are not leasing well.  That will likely change in the near future since all the new construction is getting leased up.

 

"...half of the available space is tied up in those 'big blocks' so the rest of the world is really limited on available space."

 

"Big block" landlords are still holding out for big users. This includes 800 5th, 2nd & Seneca, Macy's, 1201 3rd, Russell Investments Center, Yale & Thomas, Elliott Bay Office Park, 520 Pike, 83 King, 1600 7th...etc.

 

Until large portions of these spaces start leasing, landlords will be less likely to entertain smaller multi-tenant floor deals, which means less inventory for more normal sized tenants (for now).

 

For normal size tenants, i.e. the rest of the world, it is tough to find good spaces in the <15,000sf realm. This is because half of the available space is tied up in those "big blocks"; so the rest of the world is really limited on good options.

 

ITRA Global Website

On May 8th, ITRA Global launched its new website.  It was designed and developed by local design firm, Bizango.  Be sure to visit.

 

 
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Got Space?

The sublease market is still hot, so if you have extra office space, please let us discuss ways to assist you to mitigate that rent obligation.  We just successfully unloaded subleases in Waterfront Place and Olympic Block that offset the future rent due by our clients.

 

1326 5th Avenue #625, Seattle, WA
206-264-9000

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