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March 18, 2016

Tech tenants had an insatiable appetite in 2015

Puget Sound Business Journal

Becky Monk

By the end of 2015, the greater Seattle area office market's vacancy rate dropped to 8.1 percent with tenants leasing more than 4.4 million square feet of office space - nearly double what had been leased in 2014, according to Seattle real estate brokerage Kidder Mathews.

Technology tenants continued to drive the demand for much of that office space.

Amazon consumed 817,000 square feet when it leased two buildings - Troy Block North and Troy Block South - in Seattle's South Lake Union neighborhood.

Amazon has told real estate brokers that it will occupy about 10.3 million square feet of office space in Seattle by 2019. The buildings it owns and occupies, those currently under construction, the space it is leasing and pre-leasing from other landlords account for about 9.4 million square feet so far.

But Amazon wasn't the only tech company growing and gobbling up more space in 2015.

Facebook, Tableau, Zillow, DocuSign, HBO and Microsoft all leased more than 100,000 square feet last year. Salesforce, Juno Therapeutics, Avvo, Impinj, Porch, Oracle, PayScale, Apple and Zonar Systems were also among tech companies expanding.

Professional services firms also inked some major leases. Safeco Insurance renewed its lease at Safeco Plaza and opted to expand there by signing a lease for 500,000 square feet. Accounting firm Moss Adams signed a lease at its current building at 999 Third Avenue in downtown Seattle. Engineering design firm AECOM signed a big deal in downtown Seattle. Pet insurance company Trupanion announced it is moving to Seattle's Georgetown neighborhood from Ballard.

For the full story, go to Puget Sound Business Journal.

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