Commercial Space Online's "Third Quarter Statistical Report" shows that between July 1 and Sept. 30, five new downtown Seattle projects were completed and 16 projects broke ground, bringing new construction in Seattle to 8.2 million sf -- an 11% increase. During the same period, the Eastside saw the launch of 7 new office buildings, pushing its space under construction there to 5.2 million sf.
Thankfully, according to the report, 42% of all office space currently under construction in Seattle and on the Eastside has been spoken for with signed lease agreements. The activity has pushed to-date absorption in the two markets up a whopping 55% from 1999. Through the first three quarters, the Seattle/Bellevue markets absorbed 4.13 million sf. In 1999, the first nine months saw only 2.66 million sf preleased.
"The pre-leasing we've been seeing is previously unheard of in the Northwest marketplace," says Rob Aigner, executive managing director for Colliers International in Seattle. "Nearly 85% of new buildings are pre-leased before they open for occupancy."
Ainger cites the market's ability here to fill its offices in part to expansion within telecom industries. Substantial companies such as AT&T, American Express, Goldman Sachs, Real Networks and Safeco are looking to establish a strong presence in this market. "Seattle is now on the global map," Aigner tells GlobeSt.com. "Certain industries are saying 'we've got to be there'. It's sort of a herding instinct."
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