REDMOND, WA-Boston Scientific had listed its Northwest Technology Center for sale last year as it moved forward with plans to scale out of the office/medical manufacturing facility by the end of 2001. However, hopes of turning the property dwindled as the market sagged and no $45-million offers were forthcoming.
Now, says Hans Kemp, the company’s broker with the Seattle office of The Staubach Co., Boston Scientific is looking to tenant the 163,454-sf complex instead.
“Our focus has shifted to leasing,” says Kemp who describes the property as “a fairly specialized two-building complex with about 94,000 sf of office space and a 69,000-sf clean room, production and distribution building.”
While Kemp would love to land a tenant for the entire property at 17425 NE Union Hill Rd., Boston Scientific, which manufactures a medical device used to clear clogged arteries, is now willing to individually lease the pair of two-story buildings, even splitting them by floors. The asking rent rate for all the space is “in the $21 per sf range triple net,” says Kemp, with separate rates for office and biotech space up for negotiation.
Earlier in the year, Staubach attempted to sell the 8.5-acre property through a sealed-bid process. Unfortunately, the last several months have been tough on the office market in Puget Sound, with some Eastside vacancy rates spiking to fairly dramatic levels. A third-quarter report out of Cushman & Wakefield has office space in the Bellevue CBD vacant to the haunting tune of 20.7%. Redmond, fortunately, is in far better shape — in fact posting the best third-quarter numbers of all Eastside sub-markets – with its vacancy rate a fairly healthy 5.9%.
Nonetheless, many real estate investors seem to have retreated to the sidelines, at least for now, and erstwhile building sellers find themselves entering the landlord’s search the holy grail of the times — tenants with credit.