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December 05, 2016

100K SF: Pokemon's big new lease shakes up the Bellevue office market

Puget Sound Business Journal

Marc Stiles

Pokemon is moving to the new 400 Lincoln Square office high-rise in downtown Bellevue, where the children's entertainment company will occupy three of the upper floors, according to commercial real estate brokers.

Alex Wheatley, a vice president with Kidder Mathews, on Monday said Pokemon International Co., a subsidiary of Japan-based Pokemon Co., will move into floors 27 through 29 at 400 Lincoln Square, taking a total of 100,000 square feet. Another Bellevue broker, Mike Schreck of Colliers International, said it's a big deal for the downtown market, where new space is getting gobbled up fast.

Wheatley and Scheck did not work on the Pokemon deal, and representatives of Pokemon were not immediately available. Paul Sweeney, a broker with the Broderick Group, is marketing 400 Lincoln for lease. He declined to comment.

The transaction shows the strength of the office market in the Bellevue central business district, where the amount of vacant space fell from 10.5 percent this summer to 9.7 percent this fall, according to Kidder Mathews. The Pokemon space has been spoken for before it's even empty.

The space that Pokemon will vacate in the nearby Key Center tower already has been taken by Concur Technologies, which operates in the building at 601 108th Ave. N.E.

Concur real estate chief Al Kinisky on Monday said his company just completed a deal to lease Pokemon's nearly 45,000 square feet on floors 16 and 17 of Key Center. Concur will take occupancy of this new space late next year and move in in early 2018, Kinisky said. This will give the Concur nearly 60 percent of the space in the 488,500-square-foot building, which Kilroy Realty (NYSE: KRC) owns.

Kemper Development Co., started construction of 400 Lincoln in 2014, even though it had not pre-leased any of the 710,000 square feet of space. With construction starting to wrap up, the tower is 82 percent leased, Wheatley said.

Pokemon will join game developer Valve Corp., and co-working giant WeWork in the building. Earlier this year, Valve and WeWork leased 225,000 and 80,000 square feet, respectively. Former Microsoft CEO Steve Ballmer last year leased the top office floor in the 450-foot-tall building on Northeast Fourth Street, kitty-corner from Downtown Park.

"(400 Lincoln) has been a magnet and a great success for Kemper Development Co., and even better for companies looking to make a statement with first in class branding," Schreck said.

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

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