Preleases in buildings under construction have become a necessity for tenants looking to grab large contiguous spaces in Downtown Seattle or the Eastside. This trend spans the Puget Sound, from Qualtrics’ 275,223 sq. ft. lease at 2&U in the Seattle CBD to Facebook’s 200,000 sq. ft. lease of Block 24 in Bellevue’s Spring District.
Downtown vacancy is down 25 bps, to 7.5%; with office vacancies at a low and space needs staying elevated, downtown Class A asking rent increased over $2.00 to $51.76 per sq. ft., full service.
The Bellevue CBD remains a front runner, with asking rents for Class A office reaching unprecedented levels. Class A rates in the CBD increased by $1.36 to $58.30, a new record for this prospering submarket. The Eastside as a whole had 196,605 sq. ft. of positive absorption in Q3 of 2019.