This is the next in a series of in-depth analyses of submarket-level trends that we’ve observed in recent years.
By: Capital Markets Team
Lake Union Sale Trends
Lake Union has been a top performing submarket in the region for the last decade, from a leasing, development, and investment sales perspective. An average of more than $1.0 billion in office sales have occurred annually from 2015-2019. Last year saw a record of $1.75 billion in office property trade hands, which accounted for 20.2% of all volume in the metro area. The vast majority of recent activity has involved single-tenant buildings occupied by the most valuable tech firms in the world.
Lake Union Pricing Trends
The first $700/SF office sale in Seattle happened in Lake Union in 2013. Since that transaction, an additional 32 transactions have closed above that threshold. 55% of all $700/SF sales in the region have occurred in Lake Union, and it is the only submarket with multiple $900/SF deals (6 deals). Seattle has cemented its position as a top-10 market globally throughout the cycle, and as such, foreign capital has flocked to the area. However, the majority of large transactions in the market still include domestic buyers.
Trades in the last 5 years
Lake Union is the only submarket in Seattle to pass the $1,000/SF threshold.
Major occupiers in buildings that traded for $700/SF
Images from CoStar and M Walmsley
Data by Kinzer Partners and CoStar