First Quarter 2012 Eastside Market Real Report
CURRENT STATE OF THE MARKET:
The Eastside Market saw 109,000 square feet of positive absorption over the 1st quarter. This growth, coupled with the decrease in overall vacancy to 14.5%, has caused average rental rates to increase to $27.67/SF (the first increase since 2007). While nearly all submarkets on the Eastside saw a steady increase of activity over the quarter, there is little doubt that the Bellevue CBD has lead the way. Currently there are Tenants looking to lease over 300,000 cumulative square feet of new space in the CBD.
• Vacancy has decreased slightly from 14.8% to 14.5% across the Eastside Office Market.
• Net absorption was again positive, with 109,864 square feet absorbed in the first quarter.
• Average asking rates increased to $27.67/SF, gross.
With increasing demand for large, contiguous space, and several tenants getting close to completing significant leases in the Bellevue CBD, look for demand to push outward to other submarkets (I-90/Suburban Bellevue/Redmond) over the remainder of 2012 and into 2013. Currently, there are only 4 options for a 100,000 square foot user and less than 15 options for users looking for between 50,000 and 100,000 square feet. As the number of large spaces dwindles down, new development may soon become a reality.