Outside of Seattle’s central business district, brokers with Kidder Mathews commercial real estate find mostly small tenants taking new leases for office space in South King County.
The analysis says this points to the steadily rising confidence of small businesses, but it doesn’t cause large-scale movement in the market. Such a trend does, however, lead to a modest reduction in vacancy rates and some firming of the asking rates. South King County did have its third best quarterly report in the past five years.
Pierce County ended the second quarter with just 30,570 sq.ft. net absorption, leaving a vacancy rate of 8.03 percent. Downtown Tacoma’s vacancy is slightly higher, but down for the third consecutive quarter and far below the 15.9 percent recorded when Russell Investment moved out in late 2010. Asking rents in this part of the South Sound are around $21 per square-foot per year.
You can read more detail in the Kidder Mathews quarterly report on office space at this link.