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Exploring Puget Sound: Where Businesses are Expanding

By Gavin Curtis

From Hughes Marino’s perch on the 25th floor of the Russell Investments Center, the marvel and dynamism that is Greater Seattle is on full display. With views of Elliott Bay, the Central Business District (CBD), Pike Place Market, South Lake Union and the Olympic Mountains, the region is clearly flourishing!

Companies migrate to Seattle for its competitive business environment, deep talent pool and roaring economy, while firms already situated here choose to expand and develop with the knowledge that the metro is one of the premier corporate hubs in the country.

In all, the Puget Sound geography contains 39 distinct submarkets in its office sector profile, and 50 industrial submarkets. Spanning from Snohomish County to the North, Pierce County to the South, Gig Harbor to the West and King County to the East—firms have an array of intriguing locales to grow their operation and create distinguished brands.

Some of the world’s largest companies are headquartered or have significant presences in the region: PACCAR, Starbucks, Costco, Boeing, Expedia, Weyerhaeuser, Nordstrom and Expeditors.

Seems as if there are a few missing names? That’s right, several “on the rise” technology firms: Amazon, Microsoft, Facebook, Apple and Google. The list is expansive and includes not just the Fortune 500 titans, but the middle market and entrepreneurial small businesses, which help drive the economic engine. According to the United States Conference of Mayors: Annual Gross Metropolitan Product (GMP) Report; the Seattle‐Tacoma‐Bellevue metro produced the 11th highest GMP in the nation in 2018 at $376.1 billion.

With growth so robust, construction and development are booming, and are not confined to one neighborhood or section of the metro. South Lake Union, Seattle CBD, Belltown/Denny Regrade, Bellevue, Queen Anne and Pioneer Square are all vibrant pockets of the region experiencing massive growth waves. By the end of 2018, developers had 35 office projects and 32 industrial sites under construction, and multi-family deliveries in the Seattle CBD alone will exceed 2,675 units in 2019.

Vacancy rates, rental rates and sales metrics have eclipsed their levels during the last expansion cycle. And in 2018, several purchases exceeded $900 per square foot for premier Class A office space; a figure never before reached in previous transactions.

Demand for quality space with access to transportation, entertainment and dining and top-of-the-line amenities continues to drive activity in the market. Supply remains extremely healthy as well, both from a delivery perspective and in the pipeline. Between office and industrial, over 13.5 million square feet is anticipated in the next 24 months.

With so many submarkets available, tenants can be judicious in their assessments on the best choice of property asset for their operation to flourish. There is tremendous opportunity across the Metro, allowing clients to find extraordinary value in their lease both on terms and pricing.

Greater Seattle is certainly thriving and with Forbes awarding the metro its number one rating as “The Best Place for Business and Careers,” the trajectory of growth will accelerate. That said, there are still great options for tenants in all sectors.

Gavin Curtis is an executive vice president at Hughes Marino, a global corporate real estate advisory firm that exclusively represents tenants and buyers. Contact Gavin at 1-844-662-6635 or gavin@hughesmarino.com to learn more.



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