Brokers Wager on Depth of Downward Spiral

SEATTLE-Not unlike a falling Nasdaq stock, analysts who follow the Puget Sound commercial real estate market have been seeking a landing pad – soft or hard. In reality, the Nasdaq and commercial property are closely linked – many of the companies that pushed the tech-laden index along have moved along out of buildings in this high tech region.

The Seattle area has been reeling in sublease space for the past six months, sparking “when-will” wagers from calloused brokers who once made a healthy living on the dot-com companies blamed for the glut. Businesses, unable to sublease space or maintain profitability, are being forced to write expensive monthly checks to landlords for empty space.

“I don’t know how you would judge that it’s over, that the end is near,” said Dan Dahl, office specialist in the Seattle branch of CB Richard Ellis. “I don’t think we can expect to see a bloody hand on the sidewalk. I would guess, though, most of the big chunks of space are on the market. I don’t see any other huge ones coming out of nowhere.”