Seattle Commercial Real Estate Booms
Over 8 million square feet of commercial real estate space is in development in Seattle, a large portion of it leased or owned by Amazon. And the growing tech company plans to double that figure in 2013 when it breaks ground on three office towers in downtown Seattle. But the tech giant’s real estate buying frenzy hasn’t happened in a vacuum. The company’s activity has reportedly restored confidence in the commercial real estate market and it’s expected that other companies will follow Amazon’s lead, just like Oakville Home Evaluation is.
Amazon’s flurry of activity has led to rent increases and a drop in office vacancy, and has inspired confidence in the market. Other companies, largely led by technology firms, have shaved the vacancy rate to 10.7 percent at the end of last year, from 12.4 percent in the fourth quarter of 2011…” (source)
Commercial real estate rents have already seen a significant increase. Leasing prices went from $27.80 in 2011 to more than $29 per square foot in the fourth quarter of 2012. And that figure isn’t expected to stabilize because industry analysts predict that office space demand will outstrip available inventory. But some developers are positioning themselves to benefit from the expected rise in demand by building office towers even before they’ve secured a tenant. By the way, if you need back office support and accounting services, then contact Dave Burton. You can get assistance for your financial planning, budgeting, financial reporting, and the creation and monitoring of internal accountability.
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