SEATTLE OWNER USER INCLUDED STATISTICAL OFFICE REPORT

Transcription

1 214 OFFICE SEATTLE OWNER USER INCLUDED STATISTICAL OFFICE REPORT Submarket Existing Buildings Total Inventory SF Direct Vacant SF Sublease Vacant SF Q Direct Total Q3 Total YTD A 42 2,699,527 2,525,94 27, % 13.21% 12.44% (159,177) 92,514 B 48 4,816,436 72, % 14.96% 13.77% (57,297) (34,624) C 9 391,992 8, % 2.27% 3.37% 4,316 (2,85) Total 99 25,97,955 3,255,241 27, % 13.37% 12.55% (212,158) 55,85 A 1 2,32,915 12,376 41, % 7.94% 7.31% (12,766) 26,588 B 53 4,95, ,989 12, % 9.73% 11.56% 74,91 132,73 C ,138 36, % 3.97% 5.6% 14,826 3,166 Total 92 7,4,86 542,585 53, % 8.47% 9.56% 76,97 188,827 A 13 2,797,946 18,749 3, % 4.97% 5.32% 9,984 64,225 B 32 2,525,438 22,226 12, % 8.5% 1.72% 56, ,269 C ,45 21, % 3.85% 4.48% 3,464 24,549 Total 71 5,877, ,329 42, % 6.38% 7.56% 69, ,43 A 22 4,27,864 6, % 1.45% 1.47% 379, ,517 B 63 3,685, ,617 38, % 16.36% 17.71% 49,744 65,719 C ,686 4, % 1.81% 1.81% 668 Total 96 8,115, ,483 38, % 8.23% 13.52% 429, ,94 A 12 1,96,881 22,681 6, % 11.93% 12.12% 3,674 2,124 B 43 2,23, ,681 2,9 6.16% 6.25% 7.24% 21,71 7,36 C ,428 68,773 2, % 14.95% 16.94% 9,545 22,291 Total 8 4,589, ,135 11, % 9.52% 1.28% 34,92 112,721 A 4 349,256 1,645.47%.47%.45% (85) (1,645) B 45 2,439,315 57, % 2.38% 2.6% (7,789) (13,14) C 2 324,412 3, % 1.14% 1.14% (2,239) Total 69 3,112,983 63,29 2.3% 2.3% 1.78% (7,874) (16,988) A 2 25,361 19, % 9.73% 9.73% (8,58) B ,65 32, % 5.62% 5.38% (1,42) 13,668 C ,29 19, % 1.55% 1.55% (18,3) Total 3 975,31 72, % 7.42% 7.27% (1,42) (13,14) Market Summary A 15 32,199,75 3,58, ,66 9.5% 1.38% 11.7% 221, ,815 B 31 2,35,843 2,99,856 65, % 1.64% 11.31% 136,73 427,37 C 131 3,68, ,4 2, % 5.39% 6.43% 32,151 55,5 Grand Total ,619,584 5,32, , % 1.2% 1.9% 389,597 1,38,172

2 STATISTICAL OFFICE REPORT 214 SEATTLE OWNER USER INCLUDED Statistics Trends (SF) Direct Total Q3 Total 2,, 1,487,267 1,5, 1,171,585 1,123, , ,, ,897 5, 24337, (5,) (1,,) Annual 828,33 1,38,172 (1,5,) (2,,) (1,829,153) Class A (SF) Class A by Building Size 25, (85) 2, 199,11 3,674 15, 379,743 9,984 1, (12,766) Seattle (159,177) CBD (2,) 2, 4, 5, 16,157 6, K 255K 575K 751K 1K+ Class B (SF) (1,42) (7,789) 21,71 49,744 56,224 74,91 (57,297) (8,) (4,) 4, 8, Class C (SF) 9,545 3,464 14,826 4,316 2, 4, 6, 8,1,12,14,16, 1, 8, 6, 4, 2, 2, 4, 18, 16, 14, 12, 1, 8, 6, 4, 2, 2, 4, Class B by Building Size 86,145 65,297 6, (22,591) 125K 255K 575K 751K 1K+ Class C by Building Size 15,111 12,495 7,598 (3,53) 125K 255K 575K 751K 1K+ P. 2 COLLIERS INTERNATIONAL

3 STATISTICAL OFFICE REPORT 214 SEATTLE OWNER USER INCLUDED Statistical Trends 2.% Direct Total Q3 Total 18.% 16.% 15.17% 16.47% 13.92% 14.% % % % % 8.52% 8.73% 8.% 6.% 4.% 2.%.% Annual 12.5% 11.35% % Class A 9.7% 9.7% Current Qtr Previous Qtr 35% by Building Class and Size 32.74%.5%.4% 3% 1.4% 1.5% 11.9% 12.1% 25% 5.% 5.3% 2% 7.9% 7.3% 13.2% 12.4%.% 1.% 2.% Class B 5.6% 5.4% 2.4% 2.1% 6.3% 7.2% Current Qtr Previous Qtr 15% 1% 5% % No Product 9.11% 8.24% 1.33% 3.97% 14.34% 12.86% 1.49% 6.62% 15.27% 5.46% 1.84% 1.29% 125K 255K 575K 751K 1.1K+ Class A Class B Class C No Product 16.4% 17.7% Market Share by Class 8.5% 1.7% 9.7% 11.6% 9.% 8.% 81.8% 15.% 13.8% 7.%.% 5.% 1.% 15.% 2.% 6.% Class C 1.1% 1.1% 1.8% 1.8% 1.6% 1.6% Current Qtr Previous Qtr 15.% 16.9% 5.% 4.% 3.% 2.% 1.%.% 33.3% 5.4% 21.9% 18.4% 12.9% 9.9% 4.8% 4.2% 27.9% 1.8% 2.4% 43.4% 6.8% 6.4% 11.8% 2.7% 2.2%.%.6% 1.5% 3.9% 4.5% 4.% 5.6% 2.3% 3.4%.% 5.% 1.% 15.% 2.% A% of Mkt B% of Mkt C% of Mkt P. 3 COLLIERS INTERNATIONAL

4 STATISTICAL OFFICE REPORT 214 SEATTLE OWNER USER INCLUDED Asking Asking Class Rent A Statistics Rent Statistics (Per SF/YR) (Per SF/YR) Full Service $34. $4. $32. $35. Direct $32.88 Total Q3 Total $33.48 $ $29.63 $27.13 $3. $ $28.77 $ $27.89 $ $ $27.56 $2. $26. $15. $24. $1. $5. $22. $. $2. $23.57 $25.9 Annual Rental Overall market Class A B C rents 28 by class $29.35 $22.93 $3.21 Class A Rent Asking Rent by Class $25.29 $26.28 $4 $36 $34.39 $34.14 $35 $34 $33.79 $34.6 $33.89 $3 $32 $32.99$33.65 $27.3 $26.54 $27.48 $25 $3 $22.25 $31.88 $31.26 $2 $28 $27.57 $36.1 $34.66 $1 $ $5 $15 $1 $15 $2 $2 $25 $3 $3 $35 $4 $35 $15 $26 Class B Rent $23.24 $23.81 $28.19 $25.6 $1 $24 $22 $5 $22.87 $22.53 $21.67 $2 $ A B C $28.59 $28.6 $25.97 $27.99 $27.48 $26.49 $35 $34 $34.49 $33.24 Asking Rent by Submarket $29.82 $29.47 $2 $1 $15 $25 $2 $25 $3 $3 $35 Class C Rent $32 $3 $3 $25 $28 $26.88 $27.78 $27.24 $29.22 $29.4 $27.47 $28.65 $26.87 $29.52 $23.5 $18.45 $19.51 $26 $2 $26.16 $19.2 $23.13 $22.39 $22.59 $24 $15 $23.13 $18.96 $2.69 $22 $2.45 $19.6 $2 $1 $21.48 $24.95 $29.59 $28.96 $1 $15 $15 $2 $2 $25 $25 $3 $3 $35 P. 4 COLLIERS INTERNATIONAL

5 STATISTICAL OFFICE REPORT 214 SEATTLE OWNER USER INCLUDED Delivered vs. Under Construction (SF) 6,3, 5,3, 4,3, 4,19,612 Direct Vacanc y Total Q3 Total 423,3, E ,498, ,223,199 92,3, ,778, ,519,851 1,446,28 1,3, 961,7 1,16, ,429 66, , 228, , ,82 495, ,492 3, (7,) Annual Delivered vs. Under Construction Und. Con Delivered 6,178, , Under Construction (SF) 1,3, 1,2, Total Under Construction SF by Estimated Delivery Date 1,196,265 1,1, 1,, 929,898 2,715,37 9, 8, 2,2, 7, 673,595 2, 6, 612,936 1,62,715 5, 1,5, 3,, Preleased vs. Delivered (SF) Preleased 2, Delivered Current Qtr. vs. Previous Qtr. Delivered Q ,226,159 1,, 2,, 2,2, 4, 3, 2, 1, 345,992 15, Market Bldgs Project Completion % Leased Total SF 1 Dexter Station Q ,992 1 Hill7 Q ,936 1 Amazon VII Q , 1 4 Fairview Q ,898 1 Allen Institute For Brain Science Q , 1 Amazon VIII Q , Westlake , 1 Amazon I Q ,1, 1 Fairview Research Center II Q ,265 1 Urban Union Q , 1 Troy BlockSouth Tower Q ,595 Pioneer Sq/Waterfront 1 2 Occidental Q , 1 NorthEdge Q ,62 1 Amazon II Q ,1, 1 Fifth & Columbia Tower Q ,779 42,62 Q1 215 Q2 215 Q Q1 216 Q2 216 Q Q , 8, 12, P. 5 COLLIERS INTERNATIONAL

6 STATISTICAL OFFICE REPORT 214 SEATTLE OWNER USER INCLUDED Proposed vs. Under Construction Annual Proposed vs. Under Construction Proposed Und. Con 13,, 11,789, ,, ,17,428 9,34, ,, ,22,45 6,93,33 7,, 5,461,4 5,744, 6,178,85 5,, 4,46,142 4,19,612 2,928,644 3,, 2,498,565 2,98,817 2,41,94 1,175, 1,519, ,7 376,82 66,271 1,, 1,778,898 (1,,) Proposed Total Proposed SF by Building Size 7,595, Ballard/U Dist 11, 7,, 6,, 1,64, 5,, 2,34,12 4,, Pioneer Sq/Waterfront 1,199,842 3,744,8 3,, 3,, 6,, 2,, % of Total Proposed SF % Ballard/U Dist % 1,, 799,842 25,12 389,8 <1K 1 2 K 2 3 K 3 4 K 4 K+ 1% 18% 26% Pioneer Sq/Waterfront 13% 41% % 1% 2% 3% 4% 5% % of Total Proposed Projects % Market Bldgs Project Developer Total SF 1 Third & Battery Bldg Martin Selig Real Estate 75,12 1 Amazon III Amazon 1,1, 1 Amazon Biodome Amazon 65, 1 Amazon IV Amazon 1,1, 1 Atrium WA Holdings 2, 1 Block 48 Vulcan 6, 1 Block 52 West Vulcan 2, 1 Block 57 East Vulcan 2, 1 Troy BlockNorth Tower Touchstone Corporation 44, Pioneer Sq/Waterfront 1 Hawk Tower Daniels Real Estate, LLC 199, W Harrison Martin Selig Real Estate 11, 1 17 Stewart Office Tower Trammell Crow 389, Marion Urban Visions 1,2, 1 Rainier Square Wright Runstad 75, 1 Madison Centre Schnitzer West 68, 1 2+U Skanska 725, Pioneer Sq/Waterfront 1 Stadium East Urban Visions 1,, Ballard/U Dist % 6% 29% 24% Pioneer Sq/Waterfront 12% 29% % 1% 2% 3% 4% P. 6 COLLIERS INTERNATIONAL

7 STATISTICAL OFFICE REPORT 214 SEATTLE OWNER USER INCLUDED Definitions Direct Total Q3 Total Submarket Descriptions: (Central Business District): This area borders Stewart Street to the north, Interstate 5 to the east, Yesler Way to the south and 1st Avenue to the west. : This area borders Pike Street to the north and is then bordered by 1st Avenue on the east until Yesler Way. It is bordered by Yelser Way to the north then Interstate 5 to the east and South Royal Brougham Way to the south. The west borders Puget Sound. : This area borders Bay Street then Denny Way to the north, Westlake Avenue to the east, Stewart Street to the south and Puget Sound to the west. : This area borders North 34th Street and North Pacific Street to the north and Interstate 5 to the east. The south border cuts down Stewart Street, back up Westlake Avenue and then follows Denny Way to the western border of Highway 99. : This area borders the Lake Washington Canal to the north, Highway 99 to the east, Denny Way to the south and Puget Sound to the west. : This area borders North 85th Street to the north, Lake Washington to the east, the Lake Washington Canal to the south and Puget Sound to the west. : This area borders North 145th Street to the north, Lake Washington to the east, Northwest 85th Street to the south and Puget Sound to the west. Note: This selected groups of submarkets does not include South Seattle or Capital Hill. Building Classifications Building Use Class A: The most prestigious buildings competing for premier office users with rents above average for the area. Buildings must have high quality finishes, state of the art building systems, exceptional accessibility and a definite market presence. 1. Multitenant: Buildings containing more than one tenant. 2. Single User: Containing one tenant that leases the entire building Class B: Buildings attracting a wide range of users. Building materials are moderately price such as concrete tilt up or wood frame with gypcrete floor system. Finishes are fair to good and building systems are adequate, but not competitive with Class A space. Class B buildings show little functional obsolescence and deterioration. Rents are average and do not approach those of Class A Structures. 3. OwnerOccupied: A building that is owned by the occupant. Class C: This class of buildings attracts tenants who require functional space at affordable rents. Most Class C buildings are wood or metal framed and have dated designs and finishes. Calculation Assumptions: is equal to the change in occupied space from one period to the next, or [(Change in Net Rentable Space) minus (Change in Sum of Vacant Space)]. Vacant space is defined as leasable, unoccupied space that is ready for immediate occupancy and includes contractually bound space such as Sublease space. The Market includes buildings that are 1, square feet and larger. Location: 61 Union Street, Suite 53 Seattle, WA For further Information: Sam Wayne Research Analyst O D This document has been prepared by Colliers International for advertising and general information only. Colliers International makes no guarantees, representations or warranties of any kind, expressed or implied, regarding the information including, but not limited to, warranties of content, accuracy and reliability. Any interested party should undertake their own inquiries as to the accuracy of the information. Colliers International excludes unequivocally all inferred or implied terms, conditions and warranties arising out of this document and excludes all liability for loss and damages arising there from. Colliers International is a worldwide affiliation of independently owned and operated companies. This publication is the copyrighted property of Colliers International and /or its licensor(s) All rights reserved.buildings that are added to the Colliers Report's inventory include completed new construction, buildings available for lease that were formerly owneroccupied, and/or buildings that were converted from one asset category to another. Buildings that are removed from the Colliers Report's inventory include buildings that became owneroccupied, buildings that were converted to non commercial use, and/or buildings that were demolished. P. 7 COLLIERS INTERNATIONAL

8 STATISTICAL OFFICE REPORT 214 SEATTLE OWNER USER INCLUDED SUBMARKET DEFINITIONS Downtown Seattle Office Market The Downtown market is made up of the buildings within and in close proximity to downtown Seattle. This market contains approximately 542 office buildings totaling over 55.6 million RSF. This market is made up of seven separate and very distinct submarkets; Seattle Central Business District,, Queen Anne/Magnolia, Belletown/Denny Regrade,, Ballard/ University District, and. Seattle Central Business District The Seattle Central Business District is the area bounded by Yesler Way to the south, Interstate 5 to the east, Stewart Street to the north and First Avenue to the west. This area functions as the financial hub of the region and is highly concentrated comprised mainly of high rise office buildings. This is the largest submarket in the Seattle area containing 98+ buildings totaling approximately 25 million RSF of space. A great diversity of buildings can be found in the CDB ranging from older historic brick and mortar structures to newer highly sophisticated upscale high rise towers. This submarket is the hub to the region s largest service related industries including Bank of America, Wells Fargo, Aetna Insurance, the law firms of Perkins Coie and Preston Gates & Ellis, and many others. Corporate headquarters include Russell Investments and Northern Life Insurance. The submarket is the area within the historical Pioneer Square neighborhood of Seattle including the strip of land located west of First/Elliott Avenues extending northward from Yesler Avenue. This market contains 83 buildings totaling approximately 7 million RSF. Most of the buildings in this submarket are older generation, rich with rustic charm and character. Many high tech companies including a long list of startup s have located here in the last decade due to the lower rental rates and loft style office. Notable companies located within this market include Getty Images, Paul Allen s Vulcan, Inc., ZuLily, Asentium, Isilon Systems, Intel, Dell, Rim, Cobalt and Attachmate to name a few. The Queen Anne submarket is the area within the Lower Queen Anne neighborhood (at the south slope of Queen Anne Hill) bounded by Denny Way and Broad Street to the south, Fifth Avenue North to the east, Elliott Avenue to the west and Queen Anne Hill to the north. This market is sparsely scattered with office buildings but benefits from its close proximity to vibrant Seattle Center. This submarket contains 83 buildings accounting for approximately 4.7 million RSF. Queen Anne is home to F5 Networks, the Bill and Melinda Gates Foundation, Seattle Art Institute, Real Networks, Publicis and Holland America. This submarket is the triangular area located directly north of the CBD bounded by Stewart Street to the south, Westlake Avenue to the east, Denny Way and Broad Street to the north and First Avenue to the west. This area, which at one time stood Denny Hill, was flattened or regraded (hence the name) to more feasibly accommodate future growth and development. This submarket contains 74 buildings totaling approximately 6 million RSF. Some of the more notable companies or entities in this submarket include Fisher Communications, KOMO and KING broadcasting companies, City University, Antioch University, Phillips, Princess Cruise lines. This submarket is bounded by Denny Way on the south, Westlake Avenue to the west, Interstate 5 to the east. The submarket is Seattle s fastest growing office market, consisting of a total of nearly 8.2 million square feet of office space. It is home to many highgrowth companies, in particular, Amazon.com, which has recently located its headquarters to the market taking almost 3 million square feet of office space, 2 million square feet, developed specifically for Amazon by Paul Allen s Vulcan real estate. Amazon is currently building another 3 million square feet of office space in the neighborhood which will be phased in over the next several years. South is also a magnet for most of the regions Life science companies and groups, such as the Institute for Systems Biology, Zymo Genetics, The University of Washington School of Medicine and the Fred Hutchinson Cancer Research Center. Along with the explosive growth of office space, the area has also seen a major increase in the development of multifamily housing projects and a wide range of quality restaurants and other service amenities. This submarket is bordered to the north by 145th St, to the south by 85th St and to the East and West by and The Puget Sound. Both a mix of industrial, housing, and warehouse space, with big box shopping centers scattered throughout, it is the most diverse market area of Seattle. It contains approximately 31 office buildings totaling approximately 1 million square feet. Ballard/University District This market is really a cluster of three separate submarkets and is defined as the areas surrounding the University of Washington and the north shore of extending west along the Lake Washington Ship Canal to Ballard. This submarket contains 73 buildings totaling approximately 3.13 million RSF. In addition to being home to the University of Washington, both Google and Adobe occupy nearly half a million square feet of space the market. Capitol Hill/First Hill While not covered in our stats packages, due to the heavy medical office buildings and multifamily housing located in the area, the Capitol Hill/First Hill submarket is defined as the area located east of Interstate 5 bounded by Yesler Way to the south, Roy Street to the north and 12th Avenue to the east. Nonmedical office space in this submarket is scarce due to dense residential development and the fact that the region s largest hospitals, including Swedish Medical Center, Group Health/Virginia Mason, and Harborview Medical Center are located here. Accordingly, there are only 34 office buildings totaling 89, RSF located in this submarket. P. 8 COLLIERS INTERNATIONAL