Back to Press Room

In the News

July 13, 2015

Building and sales keep on booming

Seattle Daily Journal of Commerce

Journal Staff

Seattle has more than 7 million square feet of office space under construction, and investors have spent $2.2 billion on office properties so far this year - not including Columbia Center.

Seattle is the most active office development market in the nation, according to one metric.

Jones Lang LaSalle reports Seattle has more office space under construction relative to its existing building stock than any other U.S. city.

The Seattle area has close to 90 million square feet of office space, and Jones Lang LaSalle reports there is more than 7 million square feet of office space under construction.

A recent report by Kidder Mathews has the number even higher, with more than 8 million square feet underway.

Only Houston, Dallas and New York have more office space under construction, JLL reports.

Close to 40 percent of the space under construction in the region has been leased, JLL reports. Seattle space is doing even better: 69 percent of the office space that is under construction has been leased, according to Kidder Mathews.

On average, landlords are asking $49.68 per square foot, full service, for new construction. That is a 55 percent premium over the regional average, according to JLL.

It's not just construction that is booming; building sales are up this year as well. Investors have spent close to $2.2 billion on office properties so far this year, a 23 percent increase over all of 2014, JLL reports. That doesn't factor in Columbia Center, which is expected to sell this year for $725 million, according to Kidder Mathews.

JLL expects office building sales in the region to top $3 billion this year.

© 2015 Seattle Daily Journal of Commerce. All rights reserved.

Back to top