CBRE Seattle's Market Viewpoint - January 2012.

1. CBRE
Puget Sound Occupancy
www.cbre.com/seattle January 2012
SEATTLE MARKET OCCUPANCY LEVELS SOAR
The Puget Sound region office market’s resiliency since The number is more impressive if you measure from the
the recession continues to significantly outpace the na- recession trough. Seattle’s occupancy gain has reached
tion. 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 the
ing approximately 16.2% of the 137 million SF that was
rapid improvement of our job market. The end of 2011
vacated 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 astute
Seattle 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 five
fortune 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, Real
mere 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 that
in contrast, would be achieved in a short time fame if the
form a series of global pathways. This outlook places the
market just maintained its historical absorption pattern.
Seattle market in an enviable position. Our region should
However, a strong bounce in hiring by high tech, gaming
eclipse the 2012 national averages for job growth, and
and aerospace companies sent Seattle’s total occupancy
remain a top-five investment market. Seattle’s occupancy
surging 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.