SEATTLE, April 27, 2017 – The 2017 first quarter commercial real estate report from Cushman & Wakefield shows that leasing activity in Seattle’s central business district doubled from this time last year. The quarterly report also indicated that the industrial vacancy rate in Kent Valley is at a historic low, putting upward pressure on asking rents.
“Global brands such as Amazon and Facebook are continuing to add to their footprint in Seattle,” said Dave Magee, SIOR, market leader – Washington region with Cushman & Wakefield. “With 60 construction cranes on the skyline, both the office and industrial markets in the Puget Sound region are significantly growing and adding to the economic stability and expansion of Seattle.”
The following data points are highlights of the office and industrial markets in Seattle, the Eastside and Kent Valley. For additional detail and to access the full reports, please visit www.comre.com/research.
Seattle CBD Office Snapshot
The Seattle CBD office market opened the year with an overall vacancy rate that decreased to 6.3 percent, while the overall asking rent increased by 9.7 percent to $40.78 per square foot on a year-over-year basis. Nearly 1.4 million square feet were leased in the CBD in the first quarter, which was double the activity of the first quarter of 2016.
Seattle Suburban Office Snapshot
The Seattle Suburban office market ended Q1 with an overall vacancy rate of 12.3 percent and an overall asking rent increase of 9.0 percent to $26.68 per square foot on a year-over-year basis.
Leasing activity in the suburban market in the first quarter totaled 332,131 square feet, a 140.7 percent year-over-year increase.
Puget Sound Eastside Office Snapshot
Vacancy in the Eastside office market is currently at 8.8 percent with overall asking rents $34.26 per square foot, which is up slightly from last year. Leasing activity on the Eastside is up significantly, totaling 590,185 square feet, which is a 25.60 percent year-over-year increase.
Puget Sound Eastside Industrial Snapshot
The industrial market on the Eastside opened the year with an overall vacancy rate that was down 260 basis points on a year-over-year basis, to 4.3 percent. The overall average asking rent increased $2.38 per square foot from first quarter 2016 to $12.27 per square foot.
Kent Valley Industrial Snapshot
The industrial market in Kent Valley opened the year still at historical lows with an overall vacancy rate of 3.4 percent. The overall average asking rent was $7.15 per square foot, a $1.30 per square foot increase from first quarter 2016.