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CBD Office Market Report: Bellevue Tight, Seattle Tightening

SEATTLE-For the fifth quarter in a row, overall vacancy in the Seattle CBD falls 90 basis points and now stands at 11.6%. Across the lake in the Bellevue CBD, overall vacancy is at 7.9% and falling, with no significant new office space expected to come online until mid-to-late 2007.

By Brian K. Miller | Updated on January 19, 2006

SEATTLE-Overall office vacancy in the Seattle CBD continued its steady decline during the final three months of 2005, falling 90 basis points for the fifth quarter in a row to end the year at 11.6%, while overall vacancy the much tighter Bellevue CBD fell 40 basis points to 7.6%. When sublease space is taken out of the equation, the vacancy rates fall to 9.7% and 6.4%, respectively, according to the latest numbers from Cushman & Wakefield.

Tom Bohman, C&W’s director of Eastside leasing tells GlobeSt.com that space will get “really tight” through the next 12- to 18 months in Downtown Bellevue and surrounding markets. That means tenants looking for space in the near term will find it difficult to find the right space in the right configuration in the right place, and whatever they find they will be paying more for it, he says.

“Part of the reason is we have had continued strong leasing and a lack of new construction in the pipeline,” says Bohman. “There are five new office buildings teed up to be built Downtown, but the earliest they will start coming online is mid-to-late 2007, and there’s no significant new construction in the suburban market except for Schnitzer Northwest’s project on the I-90 corridor (Eastgate), which also won’t be tenant ready until mid 2007.”

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