Impacts of Boeing Decision Trickle Down

LYNNWOOD, WA-Last month’s announcement by The Boeing Co. that it would relocate its world headquarters to Dallas, Denver or Chicago at first was viewed by Puget Sound residents as a huge psychological loss – not unlike the loss of a family member. However, the economic consequences continue to trickle in from separate towns that will suffer rising vacancy rates and the loss of sales-tax revenue.

When Boeing’s material-buying unit vacated the Quadrant Center’s 295,000 sf of office space, Lynwood’s office-vacancy rate ballooned from 10% to 23% almost overnight. While area tenants pay $15/sf- $20/sf – significantly lower than the Seattle and Bellevue range of $35/sf – it’s going to take some time to fill the space.