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Southend and Northend Office Rates Bucking the Trend

SEATTLE-Around most of Puget Sound, fourth quarter news about the office market is glum -- escalating vacancies and diminishing rents. Amid the turmoil, however, the Southend and Northend submarkets have managed to remain relatively stable.

By Janet Parker | Updated on December 18, 2001

SEATTLE-Fourth quarter figures released yesterday by the local offices of Cushman & Wakefield came as no surprise to those working in the industry. Over the course of the last four quarters — about Puget Sound’s cores — office rents dropped a good 10% to 15%. Oddly enough, though, rates in the Southend and Northend are relatively unchanged.

Measuring Class A averages alone, Seattle’s CBD moved from $38.05 in the fourth quarter of 2000 to a current $34.25 — a drop of 10%. During the same period, properties in the Eastside suburbs fell an average 12.7%, moving to $27.34 from $31.31. Leading the pack in terms of rate losses is the Bellevue CBD. Now averaging $30.88/sf, Bellevue’s rents are off a full 17% from its rates of just a year ago.

And then there’s the Southend office market, contained within the cities of Renton, Tukwila, close-in south Seattle, Federal Way, Kent and Auburn. Weighing in at only 8.5 million sf or so, it comes nowhere close in size to the Seattle and Eastside markets. But the relative stability of its rates is noteworthy in today’s market.

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