Quick Links

Mobile Security Industry News

[April 11, 2012]

Seattle's office towers getting fuller, brokers report [The Seattle Times]

(Seattle Times (WA) Via Acquire Media NewsEdge) April 11--Downtown Seattle's office market continued to bounce back over the winter, according to recent reports from four brokerages.

More tenants moved into more empty office space during the first quarter, all say, driving the vacancy rate down. The last time the rate was lower was in spring 2009, according to brokerage Cushman & Wakefield/Commerce.

Since brokerages use different parameters to develop their statistics, their estimates of the vacancy rate vary widely, from 12 percent to 18.

But all agree on the trend. And they say it's likely to continue.

"I see the demand for space continuing to grow, and if you look at the amount of supply [under construction], it's virtually zero," said Greg Inglin, a senior vice president with Colliers International.

Amazon.com's seemingly exponential growth has accounted for much of the drop in vacancies, brokers agree, but the online retailer isn't the only player.

"Now we're starting to see some movement from the non-Amazon class, the companies where you don't wear shorts and flip-flops to work," said Richard Briscoe, a vice president with brokerage Kidder Mathews.

Those traditional office tenants -- law firms, insurance companies and the like -- until recently were cutting back on office space or holding steady, he said. Now, some are starting to expand.

Space in the most prestigious buildings is particularly tight, brokers say. Brokerage Broderick Group calculates the vacancy rate in what it considers downtown's top 10 towers is just 6 percent.

Empty space also is more difficult to find in downtown's northern reaches. The total vacancy rate in South Lake Union and the Denny Regrade is under 10 percent, according to Broderick, compared with 15 percent in the central business district and 23 percent in Pioneer Square.

Downtown's first "speculative" office building in several years -- no pre-signed tenants -- broke ground in South Lake Union last quarter: Spear Street Capital's 202 Westlake project.

"We think it'll do well," said Broderick's Damon McCartney.

Other brokers agreed, noting its location a block from Amazon's headquarters and its relatively small size -- just 110,000 square feet of office.

While other developers reportedly are dusting off long-dormant plans for new office towers, Colliers' Inglin said he doubts any will build without tenant commitments.

Several downtown buildings with high vacancies changed hands recently, or are expected to shortly.

An affiliate of CBRE Capital Markets acquired the 80 percent vacant Smith Tower through foreclosure.

Goldman Sachs affiliate Whitehall Street's 11-building Seattle-area portfolio -- which includes half-empty 1111 Third Avenue -- also could have a new owner soon. Whitehall is expected to default when its high-balance, interest-only loan matures this month.

Such ownership changes are good for the market, said Kidder Mathews' Briscoe: New owners, especially ones that haven't overpaid for a building, can apply more resources and fresh energy.

The overall vacancy rate on the Eastside also declined during the first quarter, according to brokerage reports. But Cushman & Wakefield/Commerce's statistics suggest that was entirely because of increased occupancy in downtown Bellevue.

The vacancy rate there slipped from 13.8 to 13.4 percent during the quarter, the brokerage said, while outlying areas remained flat at 13.6 percent.

Eric Pryne: 206-464-2231 or epryne@seattletimes.com ___ (c)2012 The Seattle Times Visit The Seattle Times at www.seattletimes.com Distributed by MCT Information Services

[ Back To Mobile Security Homepage's Homepage ]

Request a Demo

Weekly Demonstration: SAP Mobile Secure
Solution including SAP Afaria Cloud

Free 30-day Trial

Best MDM in the cloud. Best MDM
Analytics. Best MDM price.

Featured Whitepapers

What Is Your Mobile Content Policy? A Checklist for Content Risk Mitigation
We are living in a world that only 20 years ago was the realm of science fiction. Devices once just barely imaginable have become common consumer items, carried casually in pockets and purses, with constantly growing capabilities.

SAP Enterprise Mobility: Bringing a Cohesive Approach to a Complex Market
Mobility and consumerization are creating complexity in the enterprise, but embracing the change can lead to more productive mobile workers as well as better communications with employees, partners, customers, and consumers. The trends in the enterprise mobility landscape drive a need for technology solutions to emerge.

View All

Featured Datasheets

Securing Enterprise Mobility for Greater Competitive Advantage
We are living in a world that only 20 years ago was the realm of science fiction. Devices once just barely imaginable have become common consumer items, carried casually in pockets and purses, with constantly growing capabilities.

Secure Mobile Content Management for the Enterprise
Every day employees move business files onto their mobile devices so they can work at home, on the road, or at client sites. The mobile workforce is a reality, as 80% of employees say they need to access work documents from outside the office.1 Instead of insecure, consumer-based tools, enterprises need a safe, reliable platform for managing content on mobile devices.

View All

Featured Webinar

Mobile Drives Field Service Productivity at Satellites Unlimited
Field service has never been more competitive or faster changing than it is today. Going mobile is a must to stay ahead of the competition, provide improved services, and keep up with ever-increasing customer expectations.

View All

Featured Webcast

End to End Mobility Requirements: IDC and SAP explore the 3rd Platform
A new IDC study states that we're in the midst of a shift that takes place once every 20 - 25 years - introducing a new technology platform that will inspire growth and innovation for enterprises of all sizes. IDC calls it the 3rd Platform - built on mobile devices and apps, cloud services, mobile broadband networks, "Big Data", analytics, and social technologies.

View All

Featured On-Demand Webinar

Analyst Webcast: Secure Content Management in a Mobile Age
Securing and managing content is taking on new importance as organizations try to cope with the explosion of business-oriented file sharing services while at the same time taking advantage of the proliferation of "smart" mobile devices.

View All