Bothell Remains One of Seattle’s Most Robust Flex Markets

BOTHELL, WA—The demand for flex product in the Puget Sound has been the key driver for leasing velocity in Bothell and the subsequent lift in investment sales liquidity, according to Newmark Knight Frank. In response, a mixed-use development, Highlands Campus Tech Centre, has been completed.

The 201,766-square-foot campus includes two flex/R&D buildings and an office building located at 21520 30th Dr. SE, 21312 30th Dr. SE and 21222 30th Dr. SE.

NKF co-head of US capital markets Kevin Shannon, vice chairman Nick Kucha, executive managing director Ken White, senior managing director Michael Moll and director Bill DeLacy represented the seller, Investcorp, in the transaction with the buyer, Equus Capital Partners.

“Bothell remains one of the most robust flex markets in the Puget Sound due to its concentration of high-tech industries including life sciences, medical device manufacturing, aerospace, telecom and utilities,” Kucha says.

Indeed, Bothell has experienced exceptional growth, largely due to the explosive success of Seattle and Bellevue, as the submarket offers an attractive discount to the largest cities in the metro. According to NKF’s third quarter 2018 Puget Sound office market report, the market has recorded impressive growth with Seattle and Bellevue experiencing sub-6% vacancy rates, along with falling and record lease rates.

For 2019, an ongoing tightening of core markets at south of 6% vacancy will result in tenant migration to submarkets such as Renton/Tukwila as well as Bothell and the Interstate-90 corridor.

“Office leasing fundamentals are strong in Bothell,” Moll tells GlobeSt.com. “When you look at what is happening with vacancies and rents in the nearby markets of Kirkland, Bellevue and Redmond, it is only logical that Bothell is going to continue to see healthy absorption, decreasing vacancies and rent growth.”