In the News
January 17, 2014
State Farm drives Pierce office market's vacancy rate down
Back to top
State Farm's arrival in the Tacoma central business district had a dramatic impact on Pierce County's office space market in the fourth quarter of 2013, according to a report from commercial real estate firm Kidder Mathews.
The county saw only minor net absorption in the third quarter of last year, making the period a relatively quiet one. However, State Farm's occupation of 297,410 total square feet in downtown Tacoma helped drop Pierce's vacancy by 98 basis points over the last three months of 2013.
That development dropped Pierce County's vacancy rate from 13.1 percent to 9.8 percent as State Farm's leases commenced. Kidder Mathews' forecast calls for even more decrease in the vacancy rate, though at a modest pace.
Asking rental rates, conversely, rose by $1.05 per square foot full service mid-year, bringing the current average to $20.77 per square foot full service.