Vulcan Signs Costco to Office Lease
- Sep 08, 2014
Vulcan Real Estate, of Seattle, has leased 176,656 square feet of office space at its Sammamish Park Place in Issaquah, Wash., to Costco Wholesale Corp., Vulcan announced.
Costco has been headquartered in Issaquah since 1995 and also operates a 150,000-square-foot membership warehouse in that eastern suburb of Seattle.
Sammamish Park Place is a three-building, Class A office complex totaling 586,823 square feet. Microsoft occupies the other two buildings.
“With Costco’s headquarters located in Issaquah, this lease was a great partnership for both parties,” said Ada Healey, vice president of real estate for Vulcan Inc., in a release.
Developed by Vulcan in 2000, Sammamish Park Place is one block east of East Lake Sammamish Parkway, with access to two I-90 exits.
Rising employment, limited current office construction, falling vacancies and rising rents characterize the Seattle office market, according to a third-quarter report from Marcus & Millichap.
One result has been a new spate of office development, with two spec projects having begun on the Eastside and a third due to break ground in the fourth quarter.
Average Class A vacancy had declined to 13 percent at midyear, a drop of about 280 basis points in the past two years, according to the report. Asking Class A rents are up 4.8 percent from last year, to $34.48, just 6 percent below their pre-recession peak.