Brokerage Exec Finds First Quarter Much Like Last

SEATTLE, WA-The Downtown Seattle office market has changed much since the first of the year, says Rob Aigner, executive managing director of Colliers International in Seattle. “I had 15 office brokers around the table this morning getting a handle on what’s going on in the market,” says Aigner. “It’s more of the same.”

By some early estimation, overall Downtown vacancy is registering near 10%, but Aigner many of what he calls the “true Class A” high rises are faring much better. “With the exception of Bank of America tower, most buildings–like Washington Mutual, Key Tower and Two Union Square–are very, very well leased,” says Aigner. “The US Bank building may be at 10%, but Key Tower is at about 3% and Two Union is under 3%.”

Aigner then turns to the less rosy part of the picture, “What goes along with those vacancies are where Class A rents are today.” About 40% off where they were at in the salad days of just a few years ago. “According to our brokers, the highest-priced space in downtown right now is $42/sf fully serviced,” says Aigner. “That’s a long way down from the upper $50′s we were seeing a few years back.”