Colliers International statistics are showing that Puget Sound office rental rates continue to rise into the fourth quarter of 2014, as tenant demand grows and vacancy rate drops.
Check out their chart showing the change across time from 2006 through 2014:
Puget Sound office rental rates continue to rise as tenant demand grows and vacancy drops. 4Q 2014 recorded nearly 500,000 square feet of positive net absorption capping off a year in which 1.89M SF was absorbed while just 700,000 SF was delivered. This has resulted in a drop in the overall vacancy rate to 10.21%, which is below the pre-recession low set in 4Q 2007. The market continues to be dominated by the technology sector with more than half of new leases in the Seattle area going to technology tenants. There is currently over 6M SF of new office buildings under construction concentrated in the tech favored submarkets of South Lake Union, Belltown/Denny Regrade and Bellevue CBD. Expect notable leases to be executed in 2015 as technology titans including Google, Tableau, Facebook, Amazon and Alibaba are expected to expand their local operations.
For commercial property investors, watching the rents rise over time is very exciting!
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