Lower Unemployment Rate Coincides with Lower Vacancy Rates
SEATTLE, Jan. 24, 2017 – The latest report from Cushman & Wakefield shows an increase in business growth throughout Seattle’s office market as vacancy rates decreases on a quarter-over-quarter basis. The firm released its fourth quarter Marketbeat Snapshot reports detailing the office and industrial markets for Seattle, Seattle Suburban, and Puget Sound Eastside.
The Seattle-Tacoma-Bellevue unemployment ranks sixth best in the nation at 4.3 percent unemployment for a Metropolitan Statistical Area with a population of at least three million people. “The outlook for commercial real estate in the Seattle area is extremely strong,” said Dave Magee, market leader – Cushman & Wakefield’s Seattle office. “This past quarter, we saw both unemployment and vacancy rates decline, particularly in the central business district. As a result, we should continue to see companies look outside of that sector for a higher supply and more affordable rent prices.”
Seattle CBD Office Snapshot
- The Seattle CBD market closed 2016 having leased 4.3 million square feet, 8.66 percent increase from 2015, and finished with an overall vacancy rate of 6.0 percent. The CBD remains the ideal location for many of Seattle’s major companies.
Seattle Suburban Office Snapshot
- Year over year, the Seattle suburban market had a vacancy decrease from 14.9 percent to 14 percent. The suburban market continues to benefit from the rising rent and limited availability in the CBD and Eastside.
Puget Sound Eastside Office Snapshot
- The Eastside office market ended the year with a vacancy rate decrease to 8.8 percent. Leasing activity in the Eastside in 2016 totaled 3.3 million square feet, up 2.79 percent from 2015. The outlook for the Eastside remains bright. On a quarter-over-quarter basis, overall vacancy fell 50 bps, overall asking rent rose $0.47 per square foot, and leasing activity rose 31.8 percent.
Puget Sound Eastside Industrial Snapshot
- The Eastside industrial market’s overall vacancy decreased this quarter to 4.7 percent. And leasing activity totaled 2.5 million square feet. The area will continue to appeal to tenants in need of improved flex or high tech spaces, higher rates of occupancy, and a greater parking ration than what Kent Valley is able to offer.
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