Trammell Crow, Principal Break Ground on 462 KSF Office Tower in Seattle Area
- Jun 13, 2014
Just outside of Seattle, the Bellevue, Wash., office market is about to expand by nearly a half-million square feet of coveted space, now that Trammell Crow and Principal Real Estate Investors have broken ground on 929 Office Tower. The 462,000-square-foot property is bringing something to the market that hasn’t been seen in quite some time.
“929 Office Tower is the first new office development to break ground in the Bellevue CBD and is positioned for first-to-market delivery of new Class A office space in December 2015,” Craig Dobbs, principal with TCC’s Seattle business unit, told Commercial Property Executive.
And 929 Office Tower will mark another first; the 19-story building will be the first Class A office structure in Bellevue to be developed under the new Washington State Energy Code, which provides for a minimum level of energy efficiency while allowing for flexible building design, construction and heating equipment efficiencies. LMN Architects is behind the design of 929 Office Tower, and Lease Crutcher Lewis is onboard as general contractor.
Carrying an address aon 108th Ave. NE, the amenity-rich tower will occupy an approximately 1.5-acre parcel in the CBD’s Washington Square superblock, just one block from the Bellevue Transit Center. TCC and Principal completed the purchase of the land in the fall of 2013, unable to resist the opportunity to develop an office project in the city. They had good reasons. “Bellevue CBD is attractive due to strong market fundamentals and limited supply of high-quality office space,” Dobbs said.
Simply put, the need for premier office space in Bellevue’s CBD is on the rise. “Stable job growth in office occupying market sectors is driving office demand, [as is] tenant preference for urban locations with access to an abundance of amenities,” Dobbs added.
Statistics offer evidence of the cry for such accommodations in the area. The vacancy rate in the Bellevue CBD was just 10.1 percent in the first quarter of the year, compared to 15.2 percent in the Seattle CBD, according to a report by CBRE Inc., the commercial real estate services firm charged with leasing and marketing 929 Office Tower. Bellevue CBD’s rental rates are also indicative of the increasingly loud call for office space. The average asking rate for Class A digs in the Bellevue CBD was $37.59, marking the highest asking rates in any of the Puget Sound-region submarkets, including Seattle.
TCC and Principal are among a bevy of real estate companies that have placed Bellevue high on their radar. In the first quarter, KBS Strategic Opportunity REIT Inc. snapped up 490,000 square feet of office space with the acquisition of U.S. Bank Plaza and Plaza Center, known as The Plaza Buildings, for $186.5 million. And Plus Investment USA grabbed the First Congregational Church site, where the company will erect a 580,000-square-foot office building.