Given the price, the new owner is no doubt expecting rents to continue rising at a healthy pace. Cushman & Wakefield is reporting that the average annual asking rent in Downtown Bellevue has risen more than 16% in the past year, to $28.11 per sf from $24.16. Over the past three years, Downtown vacancy has fallen from 29% to between 5% and 6%, according to C&W.
The tight market has spawned several new office projects. Upwards of 2.5 million sf of office space is under construction or close to it, according to C&W. An executive with Brickman Associates could not be reached Wednesday morning for comment.
Civica Commons consists of dual mid-rise office towers joined by a glass atrium at108th Avenue Northeast and Northeast Second Street. The building is fully occupied at an average rent of about $31 per sf. The atrium, which features a granite fireplace, library and fountain, was well reviewed, prompting Schnitzer Northwest to reproduce it in other new developments, along with features such as the concierge service, valet parking and dry-cleaning pickup. Known tenants at Civica include Microsoft, Morgan Stanley and Anheuser-Busch.
In April, Met Park North, an 11-story Downtown Seattle office building that is substantially over-parked, sold for $88.5 million, or $475 per sf. The seller had paid $79.9 million for it six months earlier. The building is fully leased to Nordstrom Inc. and 24-Hour Fitness on a long-term basis and comes with a suburban-like parking ratio of 3:1,000 sf. In May, Market Place One & Two, a 125,000-sf Downtown Seattle office development with Puget Sound views, sold for $56 million, or $447 per sf.
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