News
WHAT'S NEW AROUND PIONEER SQUARE
December 2, 2011
| Colliers International SVP Dan Dahl (below in front of Olympic Block) might be a little like a Maytag repairman when it comes to leasing his managed portfolio in Pioneer Square: the Olympic block at 1st and Yesler is 95% occupied and The Buttnick & City Loan building is at 97%. This week, we bring you an armchair tour of some of the latest happenings in the oldest part of downtown. |
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| Startups, creative gaming companies, and software development companies gravitate to what is funky, cool, and hip. (Which may explain the popularity of dance video games.) ?The big driver for tenant demand right now is mature technology and some start up technology,? Dan tells us. Tenants in these older buildings also tend to be smaller, taking about 2,500 SF at $22/SF fully serviced(downtown rents are $28/SF to $30/SF), and they spend $175 for parking in Pioneer Square versus $350 in the core of the CBD. |
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| With all of his leasing handled, Dan has time to work on the sale of a building portfolio, which went to market unpriced: the Maynard Building, the Grand Central Building (which we snapped recently above), and the Seattle Quilt Building, all of which are about 95% leased, he says. The tenants often look for bigger floorplate buildings as they grow, he says. But until Amazon gave back 505k SF across two buildings recently, they didn't have a lot of choices in Pioneer Square. A personal aside: Dan is planning a trip with his family (his daughters are 11 and 14) trekking to Nepal this spring. |
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| And this, of course, is the 38-story Smith Tower (built in 1915, it's the oldest skyscraper in the city and tallest until it was displaced by the Space Needle in 1962). In October, CBRE Investors reported that it had bought the $42.5M in non-performing notes (Chicago-based Walton Street Capital had planned condos before the housing bust). Sources tell us after the first of the year, it'll make an announcement that it's coming back online as office. It's more than 80% vacant. |
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| In Pioneer Square's older buildings, the floor plate geometry is a square or sometimes a horseshoe built around an atrium that's been in-filled, says CBRE first VP Dan Stutz. Next year, on the edge of Pioneer Square in the Stadium District, companies that need large floor plate space will be able to find it at Home Place Center, a 310k SF, Class-A two-building complex being developed by American Life Inc (the first building is slated for delivery in Q2 2012 with the second coming Q1 2013). CBRE is leasing the $150M project, which is being financed with 100% equity, American Life COO Gregory Steinhauer tells us. One selling point: great commuter access to I-5, I-90, and Hwy 99, as well as mass transit, including light rail, ferry, and bus systems. Target tenants: professional services and technology firms. |
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| This is what North Lot looks like now, but the massive project (slated for completion in 2015—about the same time the Alaskan Way Viaduct comes down) finally started mobilization and construction on Monday, Daniels Real Estate president Kevin Daniels tells us. Phase 1 of the $680M Stadium Place features two residential towers with 514 rental apartments (including affordable, workforce, market rate, and luxury units). Also planned: 225 condos, nearly 1,000 parking stalls, a 250k SF office tower, a 225k SF hotel, and 35k SF of retail. |
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| Daniels Real Estate will be presenting its tower designs to the Pioneer Square Review Board on Dec. 7 at 9:00pm at City Hall. Kevin (whom we snapped in his office at Starbucks' HQ recently), where it will unveil its proposed design for the tallest tower. We'll have a rendering of the ?inspiring design? for you next week. |
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| How much is that ducky in the window? More importantly, if you can identify the name of the store in Pioneer Square where we snapped these raincoated fowl, we'll give you a pair of free tickets to ourBisnow Multifamily Summit, Dec. 7 at the Edgewater Hotel. Featured panelists include: Goodman Real Estate president & CEO George Petrie, Holland Development COO Thomas Parsons, Security Properties president & CEO John Orehek, and other top Seattle multifamily experts. Send responses to sibley@bisnow.com. |
