Robust demand fundamentals are driving strong investor interest in the Puget Sound office market
Sales transaction activity involving office assets across the Puget Sound got off to a near-record start in 2019, totaling $2.0 billion.
May 08, 2019
- Sales transaction activity involving office assets across the Puget Sound got off to a near-record start in 2019, totaling $2.0 billion. The first quarter of this year was the second most active first quarter in the history of the Puget Sound in terms of sales volume, only falling behind Q1 2007.
- Fueling this sales activity were select large office deals including the Troy Block complex and 800 Fifth, which both closed in the first quarter. These two deals alone totaled nearly $1.3 billion. On a trailing-12 month basis, Puget Sound office transaction volume was up 54.1 percent.
- Exceptionally strong demand fundamentals across the office market regionally are driving interest from a variety of capital sources. With limited availability, and office rental rates relatively low compared to other costal markets, many national and global investors perceive the Puget Sound office market as a top investment target.
- Looking forward, the development pipeline is unlikely to provide much relief to the supply-constrained Puget Sound office market. Given this, we expect transaction activity to be strong through the remainder of 2019 and into 2020.
Source: JLL Research, Real Capital Analytics