Developers are shifting their focus to the Eastside
The Puget Sound office market is the second most active market along the West Coast in terms of development as a percentage of existing inventory.
November 27, 2019
- With more than 4.7 million square feet of space currently under construction, the Puget Sound office market is the second most active market along the West Coast in terms of development as a percentage of existing inventory, behind only Silicon Valley. It’s no doubt that tech companies are the primary driver of this construction activity as they continue to prelease new development on both sides of the lake.
- The majority of current office construction is focused in Downtown Seattle, but this could potentially shift to the Eastside over next few years. Strong demand and limited availability on the Eastside is likely to push developers to move forward on a number of office projects. There is currently more than 14.0 million square feet of office space in various states of proposal on the Eastside, with 4.0 million square feet likely to break ground over the next 18 months.
- Despite the significant number of projects proposed on the Eastside, tenants are unlikely to find supply relief any time soon given the current rate of preleasing. Some of the proposed projects could possibly see full building leases before breaking ground.
Source: JLL Research