Pierce County's office real estate market was “relatively quiet” in the third quarter of 2013, according to the latex research from commercial real estate firm Kidder Matthews.
The report cited “only minor net absorption and a flat vacancy rate,” although it went on to accede that “the numbers will change dramatically next
quarter when the State Farm expansion into downtown Tacoma commences.”
State Farm's total occupancy of 297,410 square feet while drop the vacancy in Pierce County by 150 basis points, according to Kidder Matthews' data.
“More importantly,” the report continued, “this will change the entire atmosphere of the Tacoma CBD where the current vacancy rate is 13.1 percent, dropping to 8.3 percent as the leases commence. Adding this to the recent positive job growth numbers should improve the entire market.”
The positive effect of State Farm's impending arrival has already been seen in local asking rental rates, which increased by $0.94 per square foot full service to a current average of $20.66 per square foot full service.