Another Tenant Percolates to the Top at 2+U

SEATTLE—A retail lease has been signed with Caffe Ladro at 2+U in a new location on Second Avenue adjacent to the 2+U lobby, according to development and construction firm Skanska. Designed by Graham Babba architects, Skanska will build out the custom tenant improvements, integrating the design with the aesthetics of the hospitality-focused building lobby.

The Seattle-based coffee institution’s ground-level retail store located near University Street is expected to open to the public in early 2020. The full-service coffee bar will serve Ladro’s locally roasted specialty coffee with fair trade, organic and micro-lot options.

Caffe Ladro amplifies the vision of 2+U’s Urban Village, which features more than 24,000 square feet of covered open and outdoor space under the lifted 2+U office tower. Skanska is passionate about creating compelling retail experiences that align with what its tenants and the surrounding community desire most. In the case of Caffe Ladro, it is craft coffee offerings and local baked goods, says Murphy McCullough, Skanska executive vice president.

“Our mission continues to be focused on how our projects can provide the best urban experience to our tenants and local community,” McCullough tells GlobeSt.com. “The Caffe Ladro lease fits in with this mission by providing an exceptional craft coffee experience at 2+U.”

With five access points including the refurbished alley off University Street and two welcoming access points from First and Second avenues, the Urban Village includes 16,000 square feet of restaurant and retail space, as well as approximately 1,100 square feet of arts and cultural space named The Studio. This outdoor space will feature local art installations and event programing in The Square and connect visitors with nature through its more than 220-foot long structural GeoWall made from local soils. In addition, The Lookout is where office tenants, shoppers and visitors can take in sweeping views of the Puget Sound.

“Skanska built a stunning retail experience at 400 Fairview’s Market Hall,” said Jack Kelly, Caffe Ladro CEO. “As a partner there, they proved incredibly cooperative and organized. So, we were thrilled when they invited us to 2+U. We find Skanska provides some of the most exciting environments for retail engagement. It’s guaranteed to be amazing.”

With construction nearly complete at 2+U, Skanska plans to open the Urban Village to the public in late August. Caffe Ladro will join Ethan Stowell’s newest Tavolàta restaurant concept, which will span 2,232 square feet of space including a full bar concept and dining for private parties.

2+U is a 686,000-square-foot office tower in the heart of downtown Seattle. Skanska engaged community stakeholders in the planning stages of the project to create a building that adds immediate value to the tenants and the surrounding community. Located at the corner of Second Avenue and University Street, the building is adjacent to Seattle Art Museum and Benaroya Hall, steps from the new waterfront. Through thoughtful design, 2+U becomes a connection linking the new waterfront, Pioneer Square and surrounding downtown neighborhoods. 2+U is now 60% leased.

This lease marks the second time Skanska has partnered with the coffee purveyor. In 2016, the developer also brought Caffe Ladro to its market hall at 400 Fairview in South Lake Union.

The retail market is holding steady. There are stiff challenges for all retail segments, but the market continues to evolve, according to a second quarter retail report by Kidder Mathews.

Like many coastal gateways, the Puget Sound region outperforms the national average with lower vacancy and better rent growth. In the second quarter, the direct vacancy rate was unchanged at 3.31%. Vacancy is down from the peak of 6.3% in the first quarter 2011. Total available space (total vacant as well as occupied but available) decreased 20 basis points from 4.66% to 4.46% and remains well below the recession peak at 8% in the fourth quarter of 2010, says the report.