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Sublease Space Clouds Eastside Office Market

BELLEVUE, WA-Eastside vacancies have climbed to an average rate of 12.66%. However, the direct rate is 5.99%. While the overall number is high, the key is the difference between direct and subleases.

By Janet Parker | Updated on October 26, 2001

BELLEVUE, WA-The last time direct vacancies in the Eastside office market approached this third quarter’s rate of 5.99% was five years ago, when a small, upward blip in the third quarter of 1996 pushed the rate to 5.80%. But it took only 12 months to lose all that ground the market had gained as vacancies have rocketed more than four full percentage points from a squeaky-tight 1.92% in the third quarter of 2000.

These figures, provided by the local offices of Colliers International, paint a picture of sharp turns — but when subleases are factored into the equations, the lines on analysts’ graphs become even more dramatic.

The Eastside’s office inventory totals just a bit more than 25.9 million sf, with 1.55 million sf of that running as direct vacancies. But, add to that 1.73 million sf of sublets, and the number spikes to 12.66%.

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