Office Buildings

With Demand Growing & Vacancies Shrinking, Puget Sound Office Rents Rise

With Demand Growing & Vacancies Shrinking, Puget Sound Office Rents Rise

Colliers InternationalColliers 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:

Seattle office rental rates chart, 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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RT @EW: ICYMI: Netflix says more #ArrestedDevelopment is in the works: http://t.co/ZbHdbixpKF http://t.co/Lqg5jBp69i

Address of Real Bluth Model Home REVEALED #ArrestedDevelopment: http://t.co/1qNT2TPwz0 http://t.co/gjcWN8U7HL

Art Stable, by Olson Kundig Architects, Seattle, Wash. The live/work loft project includes a seven-s http://t.co/6Oi9pWs1BS

Aros: Federal Center South Building 1202, Seattle, Washington. Commercial Real Estate #commercialre http://t.co/lRX2VhtOZ5

Contemporary chandeleir with quirk at Seattle's The Whale Wins [Restaurant] | Heliotrope Architects http://t.co/FJPMPmle5G

🇺🇸 Happy 4th of July, Seattle! 🇺🇸 #IndependenceDay #July4th http://t.co/pHlhgbvAwo

Broadway by night. http://t.co/toOP3e4BzI

Seattle waterfront http://t.co/TYED2Xa4SQ

RT @AirbnbHelp: We are aware of the 503 error and we're working hard to fix this as soon as possible! Thanks everyone for reporting this!

Mike Meisenbach (mikemeisenbach) on about.me http://t.co/V33hoFULEn

RT @EW: ICYMI: Netflix says more #ArrestedDevelopment is in the works: http://t.co/ZbHdbixpKF http://t.co/Lqg5jBp69i
Address of Real Bluth Model Home REVEALED #ArrestedDevelopment: http://t.co/1qNT2TPwz0 http://t.co/gjcWN8U7HL
Art Stable, by Olson Kundig Architects, Seattle, Wash. The live/work loft project includes a seven-s http://t.co/6Oi9pWs1BS
Aros: Federal Center South Building 1202, Seattle, Washington. Commercial Real Estate #commercialre http://t.co/lRX2VhtOZ5
Contemporary chandeleir with quirk at Seattle's The Whale Wins [Restaurant] | Heliotrope Architects http://t.co/FJPMPmle5G
🇺🇸 Happy 4th of July, Seattle! 🇺🇸 #IndependenceDay #July4th http://t.co/pHlhgbvAwo
Broadway by night. http://t.co/toOP3e4BzI
Seattle waterfront http://t.co/TYED2Xa4SQ
RT @AirbnbHelp: We are aware of the 503 error and we're working hard to fix this as soon as possible! Thanks everyone for reporting this!
Mike Meisenbach (mikemeisenbach) on about.me http://t.co/V33hoFULEn