Kinzer Market Observations: Lake Union

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.