The Seattle office market continues to struggle, with net absorption reaching -2.7 million square feet in Q3 2024, a decline from Q2’s -2.5 million square feet. The vacancy rate increased to 15.7%, up from 15.1% in the previous quarter, indicating persistent challenges. The average asking rent decreased slightly to $36.82 per square foot annually, offering tenants softening rents and increased concessions. High availability and slow leasing momentum exert pressure on landlords, while trends like remote…
Q3 2024 Multifamily Market Report
Absorption is up 30% between Q2 and Q3 2024. Vacancy is holding steady, while up a touch from Q2, still lower than the previous three quarters. Asking rents are even with Q2, and up 4.2% from a year ago. The construction pipeline has fallen 19% with 17,628 units under construction, compared with just over 24K over the previous four quarters. New development starts are down 40% from this time last year, and off about 60%…
Q3 2024 Industrial Market Report
In Q3 2024, the Puget Sound industrial market saw a net absorption decline to -3.2 million square feet, down from -2.1 million square feet in the previous quarter, reflecting a continued softening in demand. The vacancy rate rose slightly to 7.8%, up from 7.4% in Q2, indicating increased space availability. Additionally, the average annual NNN asking rent decreased to $14.26 per square foot, down from $14.82. These trends suggest ongoing adjustments in the market as…
Case Study – Mercer Mega Block
Mission Accomplished: Mercer Mega Block | Land Development OVERVIEW 800 Mercer St, 615 Dexter Ave N, Seattle, WA Land Development Site | Downtown Seattle 124,395 SF / 2.86 AC Seller Representation Sale Price: $143,500,000* *The $143,500,000 sale price included a contribution of $5M to combat homelessness The Challenge Our team was chosen to assess the highest and best use by identifying development opportunities and constraints while providing a thorough site analysis for a 2.86-acre acquisition…
Q3 2024 Expanded Puget Sound Industrial Market Report
The I-5 Corridor industrial market, spanning Whatcom to Clark counties, is experiencing a period of adjustment. Vacancy rates have risen to 7%, up from the five-year average of 4.3%. Leasing activity has slowed, with net absorption showing a negative figure of over 2 million square feet. Despite this, construction remains active, with over 12 million square feet under development, although the volume of new construction starts is decreasing. High land costs, stabilized rental rates, and…
Case Study – Mukilteo Industrial Market
Key Deal Points 12407 Mukilteo Speedway, Mukilteo, WA Industrial 5,040 SF Total 700 SF Office For more information regarding this case study, please contact: Ryan Aleinikoff Associate D (425) 818.2654 [email protected] Richard Peterson Principal D (206) 773.2677 [email protected] Chris Peterson Principal D (206) 773.2678 [email protected] The Challenge Find a replacement tenant for a suite that was going to be vacated from an expanding tenant. To save the landlord money, we had to find…
Case Study – Crockett Street
Crockett Street | Townhome Development Site OVERVIEW 2110 1st Avenue N | Seattle, WA Townhome Development Site 9,470 Land SF / 0.22 AC Seller Representation Sale Price: $3,210,000 The Outcome Listed: January 3, 2022 Competing Offers: 1 Under Contract: February 27, 2023 Closed: August 29, 2024 “I appreciate how creative the Lee & Associates team was in structuring a deal on my behalf and their attention to detail throughout an extended transaction process.”…
Case Study – 3201 S Norfolk Street | Seattle Industrial Market
Key Deal Points 3201 S Norfolk Street, Seattle, WA Industrial Warehouse, Brand New Class A Construction ± 49,330 SF Total Tenant Representation 10 Year Lease Term For more information regarding this case study, please contact: Andrew Hull Vice President D (253) 444-3023 [email protected] The Challenge The client required a 50,000 square foot warehouse to support their increased production capacity. The warehouse had to be within proximity to King County Airport. A property that matched their…
Q2 2024 Expanded Puget Sound Industrial Market Report
This report covers the primary developed areas of Snohomish through Thurston County. Industrial markets in the Pacific NW are adjusting to new parameters but remaining steady. Vacancy rates are hovering around 6% in the 4-county region. Leasing activity slowed in the first quarter but started picking up as we progress through the second quarter. New construction is active with permitted projects, but the regional project pipeline is diminishing, not due to demand, but due to…
Q2 2024 Retail Market Report
The Puget Sound retail market continues to struggle in downtown urban areas, while suburban markets flourish. With office sector vacancy rates remaining high and many people working from home full or part-time, daily retail mirrors its COVID-era trajectory. Vacancy rates hover around 3.5% market-wide but are significantly higher in downtown Seattle, ranging from 12-14%. MARKET INDICATORS Q2 2024 Q1 2024 Q4 2023 Q3 2023 Q2 2023 ↑ 12 Mo. Net Absorption (SF) (688,394) (668,493) (548,911)…