With the higher rent rates and traffic nightmares inherent in Puget Sound's central business districts, Heed says he believes this development will lure Class A tenants to Lynnwood. "We are seeing good activity from Eastside tenants looking for renewal. It's still cheaper up north, and a lot of companies' employees live there. If they can get the Class A environment and amenities they're used to, it makes sense to move," says Heed, adding.
As for similar properties in the area, Heed says, "The closest comparable property are the two Fisher Business Center buildings located on 188th St. Built in 1984 and 1986, they each contain 98,518 rsf of Class A office space, with rents at $17.50 net.
Rents in the Cosmos Lynnwood six-story building will run $20.50/sf NNN, with nets estimated at $6.50, a low number in contrast with the high $20's to mid-$40's for Class A space in downtown Seattle and Bellevue.
Add to the attractive pricing the fact that Lynwood is situated at the intersect of Interstates 405 and 5—plus the city's push to create a CBD--and Heed says many business will find Cosmos Lynnwood's Class A an inducement to move. "The city is really pushing the creation of a CBD. Right now it has a proposal in the works to raise the high limitations (on commercial buildings). A CBD here would be great not only for Lynnwood but the entire Northend market," he iterates. The Cosmos' site is located within the newly proposed 77-acre area currently dubbed the "Lynnwood Central Business District."
The project at 19020 33rd Ave. W. is a development of Bellevue-based Cosmos International Corp. Another of the company's developments is the Mountlake Corporate Center at the 220th and Interstate-5 interchange. Completed in the fall of 1999, Heed says Mountlake is currently 98% leased at effective five-year rates of $26.50 full service.
The slightly lower rate Heed explains as the difference in construction costs, which were lower two years ago. Now nine months into construction, Cosmos Lynnwood is expected to complete on time this September. The brick and emerald-tinted glass building is being constructed by E. Kent Halvorson, and the architect is Curtis Beattie & Associates.
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