"I feel pretty good that we've finally hit the bottom of the market, and we're starting to see some activity," says Cederstrand, adding, " There are about 50,000-sf of tenant requirements in the downtown market, and I expect they will land someplace in the next few weeks."
The gas in Tacoma's renewed velocity has the low-octane value of smaller deals--mostly 5,000-sf to 10,000-sf leases. But, Cederstrand explains Tacoma has traditionally been a "small company" market. As such, large-space transactions are sporadic at best.
Regardless of the size of average transactions, with Tacoma's office market (including all classes) measuring out at only 3.53 million sf, Cederstrand says it won't take too much activity to push the vacancy level here to more palatable numbers. And increased demand may not be too far off for Pierce County.
A new report out of Colliers says, "Tacoma can expect to see businesses relocating to the area from markets in King County…" Cederstrand agrees. While rents in the king pin markets of Seattle and Bellevue have fallen from loftier numbers, Tacoma--with Class A rents ranging around $20/sf to $24/sf--are still far easier on the bottom line.
Another perk for Tacoma-based offices is a break from the chokehold traffic of King County. Less congested thoroughfares and the light-rail inroads already made here can make a difference. Just ask Boeing. The aerospace company that has been pulling out of King County in bits and pieces recently said traffic here is a major factor in the area's ability to hold a competitive edge.
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