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Seattle Office Leasing Activity Dips, Tech Still Drives Market

The latest report by Savills found office leasing in Seattle dropped for the second consecutive quarter, to 1.9 million square feet in Q4 2019. The firm notes this is down 4.8% compared to the previous quarter and 7.7% year-over-year. Q4 2019 leasing activity was down (18.5%) below the five-year average of 2.3 million square feet per quarter, notes Savills.

Meanwhile, Kidder Mathews’ reports Seattle’s CBD vacancy hit 6.7% at the end of Q4, up 100 basis points from last quarters’ 5.7%, due to “lackluster” leasing activity.

Savills points out six of the 10 largest leases seen in the quarter came from the tech sector, with notable tech giants particularly active. The Downtown submarket captured 52.2% of the large transactions, with tech companies accounting for 69.2% of the quarter’s major transactions.

Kidder Mathews notes, year-end net absorption hit nearly 5.8 million square feet, as tech titans (Amazon, Google, Facebook, Microsoft and Apple) again continued their appetite for close-in office space heading into the new year. Though it points out cranes remain active in both Seattle and Bellevue, with developers pursuing new construction in both of those CBDs, as downtown Class A space becomes increasingly scarce.

Researchers at Kidder Mathews found 11 major construction projects underway totaling roughly 3.8 million square feet, with about half of that space expected to deliver in the next two quarters, though 75% of it is pre-committed.

For comments, questions or concerns, please contact Dennis Kaiser

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Read more Savills’ ReportRead more at Kidder Mathews Report

About Dennis Kaiser

Dennis Kaiser is Vice President of Content and Public Relations for Connect Commercial Real Estate. Dennis is a communications leader with more than 30 years of experience including as a journalist and in corporate and agency marketing communications roles. He is responsible for Connect’s client content operations and is involved in a range of initiatives ranging from content strategy, message development, copywriting, media relations, social media and content marketing services. In his most recent corporate communications roles, he led a regional public relations effort across Southern California for CBRE, played a key marketing role on JLL’s national retail team, and was responsible for directing the global public relations effort at ValleyCrest, the nation’s largest commercial landscape services company. In addition to his vast commercial real estate experience, Dennis has worked on communications and launch strategies for a number of residential projects such as Disney’s Celebration in Florida, Ritter Ranch in Palmdale California (7,200 homes, 22,000 acres), WaterColor in Florida and PremierGarage in Phoenix. Dennis’s agency background included firms such as Idea Hall and Macy + Associates. He has earned an outstanding reputation with organization leaders as a trusted advisor, strategic program implementer, consensus builder and exceptional collaborator. Dennis has developed and managed national communications programs for Fortune 500 companies to start-ups, both public and private. He’s successfully worked with journalists across the globe representing clients involved in major-breaking news stories, product launches, media tours, and company news announcements. Dennis has been involved in a host of charitable and community organizations including the American Cancer Society, Easter Seals, BoyScouts, Chrysalis Foundation, Freedom For Life, HOLA, L.A.’s BEST, Reach Out and Read, Super Bowl Host Committee, and Thunderbirds Charities.

  • ◦Development
  • ◦Lease