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April 24, 2015

South Sound office market improves, barely

Business Examiner

South King County's office real estate market had a good first quarter, absorbing 67,962 s.f., and dropping the vacancy rate to 11.04 percent. The availability rate reported by a quarterly outlook from Kidder Mathews brokerage is still relatively high at 13.6 percent, a factor in the low and flat rental rates in this market.

Pierce County office vacancy rate was almost unchanged in the first quarter, ending at 9.62 percent. Net absorption was 21,962 s.f. in the quarter, nearly twice the total for all of 2014. Asking rent was unchanged in the quarter.

Tacoma's central business district (CBD) vacancy is 10.1 percent, unchanged from the end of 2014 and the availability rate is also unchanged. Both of these figures are strongly affected by the amount of space in the CBD that is non-functional for most users. Sales in this market remain limited to smaller properties, primarily owner/user acquisitions in the past quarter.

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