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November 14, 2016

Amazon leases new 21-story Seattle office tower

Puget Sound Business Journal

Marc Stiles

Amazon has leased all of the new 21-story Midtown21 office high-rise in Seattle.

The long-term lease covers all of the tower's 365,000 square feet, Trammell Crow Co. and joint venture partner MetLife said Monday.

Construction of the tower is scheduled to be done in December. Amazon will move in later in 2017, said Trammell Crow, which developed the building. Other details of the deal were not disclosed.

Midtown21 is at the corner of Terry Avenue and Stewart Street, kitty-corner from a renovated 1950s building that Amazon leases and three blocks from the company's South Lake Union campus to the north and its high-rise campus to the west.

The deal shows that Seattle-based Amazon (Nasdaq: AMZN) is not done growing and will continue to lease space even as it builds the high-rise campus around Lenora Street and Sixth Avenue. Amazon recently began building the third tower on the four-block campus, which will total around 4.2 million square feet and be home to the company's unique biosphere building.

Amazon occupied or had plans to build and lease a total of 9.3 million square feet as of this summer, according to Seattle real estate company Kidder Mathews. Amazon reportedly will have 12 million square feet of office space in the Puget Sound region by 2022.

For Trammell Crow, the deal validates its decision to start construction of Midtown21 two years ago despite not having pre-leased any of the space.

At the time, 11.3 percent of the office space in Seattle was vacant, according to Colliers International. Now the vacancy rate is 8 percent as companies have moved into more space.

Through the first three quarters of the year, tenants have taken over an additional 2.3 million square feet of space, with 1 million of that in top-of-the-line, or Class A, space in Seattle, Colliers reported.

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

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