Office tenant requirements on the Eastside: how they’ve changed over the past 5 years
Over the past few years, technology sector has been a driving force throughout the Eastside market, especially in the Bellevue CBD.
August 28, 2019
- Over the past few years, technology sector has been a driving force throughout the Eastside market, especially in the Bellevue CBD. As of Q2 2019, the tech industry accounted for 66 percent of total office requirements across the Eastside, a significant increase from 32 percent in Q2 2014.
- Over that same time period, vacancy in the Bellevue CBD dropped from 7.9 percent to 3.9 percent, which is the lowest level since 2000. There are currently very few options for large tenants in the CBD as there are just a few blocks of space over 20K s.f. that are on the market available for direct/sublease.
- With very few options for large users on the Eastside, due to a lack of large available blocks of space, tenants with significant size requirements are either looking at proposed buildings or evaluating space options in the suburban submarkets in order to meet their needs. Two speculative developments have recently commenced construction, but are unlikely to provide relief given the strong office demand and the current rate of preleasing.
Source: JLL Research