Now that most analysts have declared the real estate downturn is finished, Seattle has emerged as one of the bright spots among US cities.
The Emerald City is home to several large companies – including Amazon, Boeing, Starbucks and Microsoft – who have done well in spite of the economic challenges facing the country. As a result, the city has created 170,000 jobs in the past five years.
When it comes to adding jobs, Seattle holds the No. 8 position, having added 2.6 per cent more jobs since the start of 2014.
According to a study released by the W.P. Carey School of Business at Arizona State University, it is tied with San Francisco for job growth percentage in the first nine months of this year.
Commercial real estate development has been increasing over the last several quarters.
The Spring District development, which was started just over a year ago, is one of the largest construction projects on the West Coast.
A 54-story tower in the downtown core which is about to break ground will be a major landmark on completion.
Wright Runstad & Co. is the developer for both the Spring District and the Rainier Square tower projects.
The Spring District is located on 36 acres of east of downtown Bellevue. When it is completed, the $2.3 billion mixed use development will include shops, offices, hotel buildings, residential space, parks and a light-rail stop.
The Rainier Square project will be situated at Fourth Avenue and Union Street. The 54-storey building will provide 750,000 sq ft of office space, 30,000 sq ft of retail space and room for approximately 220 apartments.
In early October, Facebook announced that it was looking for at least 100,000 square feet of office space. The company is considering converting the historic Macy’s building located at Fourth & Pine in downtown Seattle for its new offices.
Office vacancy rates in Seattle are currently heading downwards. Figures in the third quarter are sitting at around the 13.7 per cent mark.
Office vacancies have decreased compared to the same period last year and the previous quarter.
The average lease rate in Seattle is about $30.50, with the highest asking direct lease rate in a submarket at the end of the third quarter coming in at $40.50.
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