CBRE                                                      Puget Sound                       ...
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CBRE Puget Sound Occupancy Viewpoint


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CBRE Seattle's Market Viewpoint - January 2012.

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CBRE Puget Sound Occupancy Viewpoint

  1. 1. CBRE Puget Sound January 2012SEATTLE MARKET OCCUPANCY LEVELS SOARThe Puget Sound region office market’s resiliency since The number is more impressive if you measure from thethe recession continues to significantly outpace the na- recession trough. Seattle’s occupancy gain has reachedtion. Extrapolating Reis, Inc. statistics from 2010-2011, 4.9%, or 3.7 million SF since the first quarter of 2010.national market occupancy has been anemic, recoup- The Seattle market’s total vacancy reduction reflects theing approximately 16.2% of the 137 million SF that was rapid improvement of our job market. The end of 2011vacated since the beginning of 2008 marked the six straight quarter of de-(with the national vacancy rate peak- Seattle’s total occupancy has clining vacancies (ending at 17.8%).ing at 17.6%). A comparison of the surged 2.7%, or two million The investment community was astuteSeattle market during the same time SF during 2011, exceeding the to the exceptional market conditions,span reveals a staggering reversal of three-year occupancy deficit and made Seattle one of its top fivefortune for the region. in a single year. places in the US to invest in 2011.Seattle’s office occupancy dropped a According to ULI’s new report, Realmere 800,000 SF, or only 1.0% of to- Estate in the New Economy, commercial activity will con-tal inventory from 2008-2010. Seattle’s road to recovery, tinue to organize around the network of gateway cities thatin contrast, would be achieved in a short time fame if the form a series of global pathways. This outlook places themarket just maintained its historical absorption pattern. Seattle market in an enviable position. Our region shouldHowever, a strong bounce in hiring by high tech, gaming eclipse the 2012 national averages for job growth, andand aerospace companies sent Seattle’s total occupancy remain a top-five investment market. Seattle’s occupancysurging 2.7%, or two million SF during 2011, exceeding numbers will follow the trend, giving confidence to land-the three-year occupancy deficit in a single year. lords, investors and private businesses this market has a solid foundation and an optimistic future.Puget Sound Region Historical Occupancy Quarter Occupied SF 2007.4 78.3 million SF 2010.4 77.5 million SF The amount of space occupied by businesses fell by 137 million square feet from 2008 to 2010, according to Reis, Total Vacated Space (three years) (0.8) million SF which tracks 79 metropolitan areas. By contrast, employ- ers occupied just an additional 20.7 million square feet in 2011.4 79.5 million SF all of 2011. OCCUPANCY GAINED 2.0 million SF - Reis, Inc. (4Q ‘10 - 4Q ‘11) © 2012, CBRE, Inc.