SEATTLE—According to JLL research, there is more than 7 million square feet of office product currently under construction in the Seattle metro area. That places Seattle behind only Houston, New York and Dallas as the primary markets driving office inventory growth nationally.
With such a historically high level of construction there are natural concerns about overbuilding but, as JLL vice president Joe Gowan points out, “preleasing is currently fairly strong and rents are rising with no immediate sign of a let-up in demand.”
Gowan notes that “When you look at construction as a percentage of existing inventory, Seattle is the most active development market in the US at the moment but we also saw an increase in the amount of preleased space in the second quarter, so we estimate that close to 40% of all the to-be-built space has some kind of leasing commitment already in place.”
He adds that “Average asking rents for new construction space being marketed today stand at $49.68 per square foot, full service, representing a 55% premium over the regional average. That tells me that companies want to be here if they can find the right space.”
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Natalie Dolce
Natalie Dolce, editor-in-chief of GlobeSt.com, is responsible for working with editorial staff, freelancers and senior management to help plan the overarching vision that encompasses GlobeSt.com, including short-term and long-term goals for the website, how content integrates through the company’s other product lines and the overall quality of content. Previously she served as national executive editor and editor of the West Coast region for GlobeSt.com and Real Estate Forum, and was responsible for coverage of news and information pertaining to that vital real estate region. Prior to moving out to the Southern California office, she was Northeast bureau chief, covering New York City for GlobeSt.com. Her background includes a stint at InStyle Magazine, and as managing editor with New York Press, an alternative weekly New York City paper. In her career, she has also covered a variety of beats for M magazine, Arthur Frommer's Budget Travel, FashionLedge.com, and Co-Ed magazine. Dolce has also freelanced for a number of publications, including MSNBC.com and Museums New York magazine.
