News
Office Robust, Industrial Worried
April 17, 2013
Integra Realty Resources' Seattle senior managing director Allen Safer tells us our robust tech economy continues to spur the office market: "A lot of institutional investors are now competing for the few properties available, which has caused cap rate compression." In fact, local office cap rates are now roughly back at pre-recession levels. There are a few clouds on the horizon for office, howeversuch as the fact that Boeing is seriously considering South Carolina for its next assembly line, which would siphon some jobs away from the Puget Sound region. Recently IRR released its Q1 office numbers for the market, and things are still tight: vacancies are at 5%, the lowest average for a metro area in the Western US.
