Kidder: Seattle Office Market Continues to be Volatile
A Kidder Mathews report on 2nd-quarter office vacancy, sales and rents in the Puget Sound region continues a trend of volatility. Vacancies shot up to 10.19%, the first time that number has been over 10% since the end of 2013, with the Seattle market spiking to 12.94%. Meanwhile, three of the five market areas saw declining rent quotes in Q2, with just the Southend and Tacoma recording nominal increases.
Sales activity has slowed thanks to lingering pandemic uncertainties and current market conditions, but demand for trophy office assets remain high. There was a flurry of 2nd-quarter office building purchases for redevelopment along with a steady flow of smaller investment and owner-user office transactions.
At the end of June, there are 17 major office projects under construction in the region, all within the Seattle and Eastside markets. There were also two notable deliveries in Q2, a Google-leased project at 520 Westlake in Seattle and 136,000-square-foot building on 6th Street in Kirkland, also leased to Google.
Mark comes to ConnectCRE with an extensive background as a business and news reporter in San Francisco radio, as well as 35 years as a traffic reporter on several stations including KGO, KNBR, KCBS and KFRC. As a business reporter, Mark covered the tech world in Silicon Valley where he became familiar with real estate transactions in the hot Bay Area marketplace. He attended San Jose State University with a BA in Radio and TV Broadcasting and currently resides in the Lake Tahoe area where he gets to frequently enjoy all of his favorite activities: Golfing, Fishing, Hiking and Skiing.