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Jones Lang LaSalle Third Quarter Report
Seattle, October 17, 2012 - Jones Lang LaSalle reports that Seattle real estate market optimism remains high following significant high profile sales during the third quarter of 2012.
“During the quarter we saw a slight decrease in the absolute number of sales transactions, but the activity that did occur was substantial,” said the firm’s Seattle Research Director, Patricia Raicht.
The report, she added, indicates that while vacancy levels remained static and overall activity slowed during the third quarter, leasing prospects remained positive. “Top tier, downtown Class A office buildings continue to outperform, although their success comes at the expense of commodity Class A, Class B and suburban properties.”
Market-wide, the vacancy rate for Class A and B office has appeared to find a resting zone in the 14 percent range, as third quarter saw virtually no change in vacancy attributable to modest tenant demand. While this consistency doesn’t necessarily make bold headlines, the report noted, overall vacancy has declined from the 18 percent range in less than two years. That translates into nearly 3.5 million square feet of net absorption.
While market-wide average asking rental rates have not moved significantly for over two years, the report says they are now inching up. What’s more, larger increases continue to be observed in buildings with occupancy rates of 90 percent or higher. In the meantime, leasing fundamentals continue to slowly shift as market demand increases and landlords are pulling back on concession packages.
The report noted that third quarter leasing volume was not dominated by any one or two transactions as has been the case in several prior quarters. Instead, more conventional leasing occurred with several smaller deals making up the bulk of the activity. This indicates, concludes the report, that a return to more sustainable organic tenant growth should be viewed as good news.
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About Jones Lang LaSalleJones Lang LaSalle (NYSE:JLL) is a financial and professional services firm specializing in real estate. The firm offers integrated services delivered by expert teams worldwide to clients seeking increased value by owning, occupying or investing in real estate. With 2011 global revenue of $3.6 billion, Jones Lang LaSalle serves clients in 70 countries from more than 1,000 locations worldwide, including 200 corporate offices. The firm is an industry leader in property and corporate facility management services, with a portfolio of approximately 2.1 billion square feet worldwide. LaSalle Investment Management, the company’s investment management business, is one of the world’s largest and most diverse in real estate with $47 billion of assets under management. For further information, please visit www.joneslanglasalle.com.
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