Flex Office Expansion Speaks to I-90 Leasing Volume
The renovation of T-Mobile’s corporate headquarters just a few blocks away is having a snowball effect on nearby buildings as T-Mobile and its vendors seek temporary space to house displaced employees.
BELLEVUE, WA—In a transaction that significantly expands the footprint of its Bellevue flexible workspace and technology campus, extraSlice recently leased an additional 16,450 square feet at Benaroya I-90. The expansion brings the company’s total commitment at the Eastgate RE Ventures-owned office property to more than 39,000 square feet.
extraSlice provides flexible workspace at Benaroya I-90 in an environment catering specifically to technology companies of all sizes and stages, from early start-ups to emerging and enterprises. The company opened its flagship location there in 2016.
“extraSlice’s expansion speaks to the acceleration of leasing activity in the I-90 corridor,” notes Colliers International’s Jeff Livingston, who represented building ownership in the transaction along with colleagues Derek Heed and Laura Ford. “The renovation of T-Mobile’s corporate headquarters just a few blocks away is having a snowball effect on nearby buildings as both T-Mobile and its vendors seek temporary space to house displaced employees. extraSlice hopes to capture some of that velocity through more opportunity at Benaroya I-90.”
extraSlice will expand into a portion of the second floor of 3600 136th Place SE on a long-term lease that commences this month. Approximately 23,660 square feet of space remains available in the building, which offers creative tech-oriented space with exposure to I-90, free covered and surface parking, and on-site transit access minutes from downtown.
“Co-working is allowing start-ups and vendors that are working on short-term contracts the flexibility to lease space on a short-term basis,” Livingston tells GlobeSt.com. “These companies have shown a willingness to pay a premium to lease a space for say six months as opposed to a minimum three-year term as most landlords require. The most common lease term we see on the Eastside is five years. In some cases, tenants are willing to pay double the price-per-square-foot lease rate for a co-working solution over traditional office space for the ability to have flexibility in tenancy.”
Bryan Oliver of Washington Partners represented extraSlice in the transaction.
The Emerald City’s population and economic growth have been among the fastest of any large US city in recent years. Its rapidly growing tech sector has powered 9.2 million square feet of new office construction, with co-working operators growing to meet the demand for interim space solutions. Despite labor shortages, public policy conflicts and high housing costs, continued flex space growth is projected in Seattle, according to a recent research study by JLL.