The gap between Class A and Class B rents in Downtown Seattle continues to widen
January 31, 2019
- The premium for Class A office space in Downtown Seattle has grown significantly in the last four years. Class A properties have seen an impressive annualized rent growth of 7.0 percent since 2014, whereas Class B posted an average annualized growth of 6.3 percent during the same period.
- Limited availability and strong demand for high-quality office space is driving up Class A rental rates, which grew 6.6 percent over the past 12 months. This growth is being driven by a wealth of demand from technology and coworking firms who are looking to rent high-quality office space.
- Class A vacancy currently sits at 8.1 percent, down from 10.3 percent 12 months ago. With a number of large leases signed in Q4 2018, Class A vacancy will likely continue to go down as tenants take occupancy in the coming quarters.
- With limited new office deliveries and strong demand for high-quality space, Class A rents are poised for further gains in 2019.
Source: JLL Research