2Q11_Eastside_Northend_Flex_Market_PDF

Page 1

2Q’11 PUGET SOUND MARKET REPORT

Eastside & Northend Industrial/Flex Market STEADY M A RK E T The Eastside and Northend industrial markets continue to show signs of slow stabilization.

EASTSIDE AND NORTHEND INDUSTRIAL/FLEX SUBMARKETS MAP

Although Eastside vacancy rates improved slightly over first quarter they continue to remain stubbornly high compared to last year. The Northend market is following a similar path, with only slight improvements over one year ago. et S oun d

sector will begin to realize larger gains when there is significant

5

Pug

primarily to renewed Boeing production. The Eastside market

EVERETT

MUKIL TEO

The moderate increase in Northend activity can be attributed

improvement in the residential, commercial and building trade

MONROE

industries; however, technology and small manufacturing LYNNWOOD

companies are showing signs of strength. The flex markets are still weak, with both the Eastside and

BOTHELL

Northend markets experiencing only a slight improvement over the last quarter.

WOODINVILLE

5

Absorption has been moving into positive

405

territory, which is a welcomed trend in this sluggish market sector. Looking forward to the third and fourth quarters of 2011, the shoulders of last quarter’s tanker contract awarded to Boeing manufacturing across the board. The surge in production will

Wa s

hin

Northend market should see increased tenant activity. On the 520

SEATTLE

Lake

the aerospace giant has also announced a ramp up in airplane

REDMOND

gto

n

KIRKLAND

90

have a positive impact on those companies that are located

BELLEVUE

BELLEVUE

nearby and provide support services to this manufacturing West Seattle

powerhouse.

ISSAQUAH

In late June the Port of Everett celebrated its 1,000th barge carrying aerospace parts for the 747, 767 and 777 models, a sign that Boeing is on a steady course to raise its plane output. As tenant demand increases and space options decrease, the Northend should see a rise in rents and decline in concessions

LEGEND Northend Industrial Submarket Eastside Industrial Submarket

to balance the supply to demand ratio. Similarly, the Eastside is poised for improving tenant activity as the economy continues to gain momentum. Several large tenants, including Saltworks, are expanding operations in the Woodinville market, which will help contribute to positive growth in that submarket. (4 2 5 ) 9 7 4- 4000

w w w. pa c i fi c -re.c om

S EAT T L E | BEL L EVU E | TA COM A | PORTLA N D


2Q’11 PUGET SOUND MARKET REPORT

Eastside and Northend Flex Market The Eastside flex market has a total of six submarkets and the 307

HISTORICAL VACANCY RATES

properties account for just over 10 million square feet. The Northend

30.0%

industrial market totals three markets, 57 total buildings and is just

25.0%

under 2.2 million square feet. Both markets experienced positive

20.0%

net absorption, helping to keep the YTD totals in positive territory.

15.0%

Overall vacancy rates dropped slightly, with only two of the total nine

10.0%

EA

ST

SID

E

NOR

ND

5.0%

submarkets - Kirkland and Redmond - experiencing increases.

0.0%

2005

2006

2007

2008

2009

2010

2011

Vacancy Rates

INVENTORY Buildings SF

Direct Vacancy

Sublet Vacancy

Total Vacancy

ABSORPTION 2Q Absorption YTD

AVERAGE RENT & EXPENSES Shell Office

CONCESSIONS Free Rent

Bothell

63

2,934,702

19.0%

1.9%

20.9%

47,186

57,134

$0.50-$0.60

$1.10-$1.25

1-3 months

Woodinville

13

409,292

8.1%

4.4%

12.5%

2,546

23,110

$0.50-$0.60

$1.00-$1.25

3-6 months

Kirkland

43

1,264,755

22.9%

0.1%

23.0%

(9,379)

(30,894)

$0.50-$0.65

$1.10-$1.25

1-3 months

Redmond

129

4,036,694

14.1%

1.3%

15.4%

(22,974)

(50,986)

$0.50-$0.65

$1.10-$1.25

2-4 months

Bellevue

47

1,219,741

15.8%

0.0%

15.8%

4,722

(3,794)

$0.50-$0.65

$1.10-$1.25

3-5 months

Issaquah

12

267,600

3.0%

0.0%

3.0%

3,774

5,690

$0.50-$0.65

3-5 months

EASTSIDE FLEX

307

10,132,784

15.9%

1.1%

17.0%

25,875

260

$0.50-$0.65

$1.10-$1.25 $1.00-$1.25

Everett

19

1,204,235

7.4%

8.1%

15.5%

10,893

19,499

$0.50-$0.60

$1.05-$1.25

3-6 months

Mukilteo

13

594,296

13.3%

0.0%

13.3%

-

-

$0.50-$0.60

$1.05-$1.25

3-6 months

Lynnwood

25

400,063

12.4%

0.0%

12.4%

(580)

(8,779)

$0.50-$0.60

$1.05-$1.25

3-6 months

NORTHEND FLEX

57

2,198,594

9.9%

4.4%

14.3%

10,313

10,720

$0.50-$0.60

$1.05-$1.25

3-6 months

1-5 months

*5 year deal

Eastside and Northend Flex Overview Market Area

THE

Bothell

2004

2005

2006

2007

2008

2009

2Q’10

3Q’10

4Q’10

1Q’11

2Q’11

25.9%

23.3%

19.1%

14.8%

21.5%

23.1%

21.4%

20.1%

21.1%

21.7%

20.9%

Woodinville

8.4%

2.8%

8.0%

9.8%

9.6%

8.3%

9.5%

18.1%

18..1%

13.1%

12.5%

Kirkland

18.3%

17.1%

13.9%

12.7%

16.1%

22.2%

19.8%

19.9%

20.6%

22.3%

23.0%

Redmond

26.7%

24.8%

11.6%

8.4%

7.6%

11.7%

12.7%

13.9%

14.2%

14.8%

15.4%

Bellevue

10.0%

8.8%

8.7%

11.4%

10.5%

17.0%

18.4%

16.1%

15.5%

16.2%

15.8%

Issaquah

33.6%

1.9%

4.7%

13.5%

8.6%

6.0%

4.9%

4.5%

5.1%

4.4%

3.0%

EASTSIDE FLEX

22.7%

19.9%

13.3%

11.2%

12.9%

16.5%

16.3%

16.5%

16.9%

17.4%

17.0%

Everett

16.2%

10.4%

15.2%

8.9%

8.2%

8.2%

8.6%

8.6%

18.3%

16.9%

15.5%

Mukilteo

58.6%

36.6%

16.2%

15.3%

13.7%

20.5%

20.5%

13.3%

13.3%

13.3%

13.3%

Lynnwood

20.1%

17.2%

11.3%

7.2%

6.7%

12.1%

14.7%

10.8%

10.6%

12.4%

12.4%

NORTHEND FLEX

28.7%

25.2%

20.3%

9.9%

9.4%

12.3%

13.1%

15.8%

15.6%

14.8%

14.3%

Historical Leasing Activity Market Area

Historical Total Absorption

2010-Leases

2010-SF

YTD 2011-Leases

YTD 2011-SF

2Q 2010

3Q 2010

4Q 2010

2010

1Q 2011

2Q 2011

Bothell

42

223,637

16

145,298

Bothell

36,050

36,087

(26,113)

52,806

9,948

47,186

Woodinville

6

8,194

7

10,906

Woodinville

(3,758)

(35,660)

515

(40,172)

23,110

2,546

Kirkland

18

58,040

9

17,429

Kirkland

10,192

(1,560)

(8,657)

21,081

(30,894)

(9,379)

Redmond

82

231,921

22

68,401

Redmond

(33,978)

(46,613)

(12,515)

(98,453)

(50,986)

(22,974)

Bellevue

35

106,785

10

25,685

Bellevue

(1,588)

27,864

7,562

18,530

(3,794)

4,722

Issaquah

4

8,797

1

1,916

Issaquah

4,533

1,000

(1,547)

2,373

5,690

3,774

187

637,374

65

269,635

EASTSIDE FLEX

11,451

(18,882)

(40,755)

(43,835)

(46,926)

25,875 10,893

EASTSIDE FLEX

Market Area

Everett

6

25,180

5

30,336

Everett

-

(117,733)

4,476

(139,551)

16,106

Mukilteo

10

232,645

-

-

Mukilteo

-

42,534

(76)

42,458

-

-

Lynnwood

24

42,109

5

8,936

Lynnwood

1,338

18,535

759

6,819

(8,779)

(580)

NORTHEND FLEX

40

299,934

10

39,272

NORTHEND FLEX

1,338

(56,664)

5,159

(90,274)

7,327

10,313

(4 2 5 ) 9 7 4- 4000

w w w. pa c i fi c -re.c om

S EAT T L E | BEL L EVU E | TA COM A | PORTLA N D

*Prior years as of 4Q

Historical Total Vacancy Market Area


Turn static files into dynamic content formats.

Create a flipbook
Issuu converts static files into: digital portfolios, online yearbooks, online catalogs, digital photo albums and more. Sign up and create your flipbook.