Office space across the Eastside is in short supply. Aaron Kunkler/staff photo

Office space across the Eastside is in short supply. Aaron Kunkler/staff photo

Office space is still tight on the Eastside

That hasn’t stopped Google and Facebook from looking to expand.

Office space across the Eastside remained tight during the first half of 2018 with low vacancy rates.

A new report prepared by the commercial real estate firm Kidder Mathews showed that vacancy rate across the Eastside sat at 5.83 percent, an area which has seen a nearly 66 percent decrease in available office space since 2010. Much of its report excluded the large leasers of Microsoft and offices in Bellevue’s central business district. Let’s take a look at some of the numbers, and there’s a lot of them.

The Eastside had around 33.8 million square feet of office space spread over nearly 1,300 buildings. East King County, including Issaquah, North Bend, Preston and Snoqualmie had the lowest vacancy rates at 1.35 percent out of a total of 3 million square feet. This was followed by Redmond, excluding Microsoft, which had just more than a two percent vacancy rate and 5.8 million square feet of office space. Kirkland had a 3.85 percent vacancy rate and 5.1 million square feet of space.

Bothell and suburban Bellevue had the highest rates of vacancy, with nearly 7.5 percent of Bothell’s 4.3 million square foot stock sitting vacant, slightly lower than the 7.6 percent of the 15 million square feet seen in suburban Bellevue. Within Bellevue’s central business district there was 10.7 million square feet of office space, which had a vacancy rate of just more than four percent.

This didn’t stop two tech giants from acquiring new office space on the Eastside though.

The Puget Sound Business Journal also reported that Facebook and Google are expanding in Bellevue.

Earlier this month, the Journal wrote that an anonymous source within Facebook said the company is planning on signing leases in three Bellevue office towers including the Civica Office Commons, Skyline Tower and Key Center. Facebook could also be looking at a larger lease in the Spring District development, the Journal wrote.

A spokesperson for Facebook told the Reporter in an email that they have no comment.

In another report, the Journal said Google had leased 80,000 square feet in the One Twelfth @ Twelfth office near downtown Bellevue and plans to lease 30,000 additional square feet of space.

Other businesses were busy acquiring and leasing space over the first half of the year as well. This includes Costco acquiring nearly 98,000 square feet in Issaquah, Puget Sound Energy picking up more than 91,500-square-feet in Bothell and Microsoft pocketing an additional 82,700 square feet in Redmond. In addition, Google acquired nearly 79,000 square feet in Redmond.

In terms of actual office sales, the report found that activity is high and on pace to meet 2017 levels. The Eastside was fetching around $337 per square foot on average, an increase of 1.07 percent compared to the end of 2017, the report found. There were 22 sales of Eastside offices with 13 happening within Bellevue.

While office space is scare on the Eastside, industrial space is even tighter, with a measly 1.25 percent vacancy rate. The only major industrial development the report noted is a 400,000 square foot warehouse and distribution center being built in Maltby. However, the report did not expect this to loosen the market since 102,000 square feet has already been leased and it has received much attention from other potential tenants.


In consideration of how we voice our opinions in the modern world, we’ve closed comments on our websites. We value the opinions of our readers and we encourage you to keep the conversation going.

Please feel free to share your story tips by emailing editor@valleyrecord.com.

To share your opinion for publication, submit a letter through our website https://www.valleyrecord.com/submit-letter/. Include your name, address and daytime phone number. (We’ll only publish your name and hometown.) We reserve the right to edit letters, but if you keep yours to 300 words or less, we won’t ask you to shorten it.

Office space across the Eastside is in short supply. Aaron Kunkler/staff photo

Office space across the Eastside is in short supply. Aaron Kunkler/staff photo

More in Business

Stock photo
Grocery store workers have right to wear Black Lives Matter buttons

National Labor Relations Board ruling against ban by Kroger-owned QFC, Fred Meyer

Sno-Valley Chamber CEO Kelly Coughlin; Lucas Haines, Volition Brewing owner and current President of the North Bend Downtown Foundation; North Bend Mayor Rob McFarland; Rob and Laurie Wesorick; Celeste Coxen; Wendy and Chris Stone. For information on this new venue, contact Chris Stone at chris@pearlandstonewine.com.
Pearl and Stone Wine Company opens tasting room

Pearl and Stone Wine Company’s new tasting room held its grand opening… Continue reading

Big Island Poke in Renton (courtesy of The Intentionalist Facebook page)
Small-business advocacy group wants you to try minority-owned businesses and put it on their tab

The Intentionalist is opening up $400 tabs for folks to use this weekend at select businesses.

Wells Fargo opened a new bank branch July 29 at 250 Bendigo Blvd. S. in North Bend. Pictured left to right: SnoValley Chamber Executive Director Kelly Coughlin; Wells Fargo employees David Vu, Zuleyka Corro, Chris Hansen (back row), Roselyn Osuagwu and Jacob McBride; North Bend Councilmember Mary Miller and North Bend Mayor Rob McFarland. Photo by Conor Wilson/Valley Record
Wells Fargo opens new branch in North Bend

Wells Fargo opened a new bank branch July 29 at 250 Bendigo… Continue reading

T
Here’s how Buckshot Honey got its name

Snoqualmie business celebrates first anniversary after opening during pandemic.

Eastside King County restaurant owners discuss challenges with U.S. Rep Suzan DelBene at Pomegranate Bistro in Redmond. (Photo credit: Cameron Sheppard/Sound Publishing)
Restaurant owners discuss labor difficulties with U.S Rep. Suzan DelBene

Experienced service and kitchen staff are reportedly hard to hire as food service reopens.

Dave and Buster's restaurant and entertainment venue looks to hire 130 people to staff its Bellevue venue, set to open in August. Photo courtesy Dave and Busters.
Dave and Buster’s hiring 130 for August opening in Bellevue

Dave and Buster’s restaurant and entertainment venue opens in downtown Bellevue on… Continue reading

Contributed photo
Katie Podschwit, Dorie Ross, Kristen Schumacher, Heather Dean and Julie Chung, owners of Chickadee Bakeshop, Heirloom Cookshop and Snoqualmie Ice Cream are opening a new location in Snoqualmie this summer.
Three Valley businesses team up for Snoqualmie venture

Snoqualmie Ice Cream, Chickadee Bakeshop and Heirloom Cookshop will soon be opening in Snoqualmie.

Images of dishes from Issaquah’s Umi Cafe posted on the SMORS page. (Photo courtesy of Kristen Ho)
Facebook page promotes minority-owned restaurants across Puget Sound region

Miya Nazzaro used to be a member of Facebook pages that were… Continue reading

Fuzzy Fletcher's Buffalo Bladeworks workshop. Contributed by Fuzzy Fletcher
Former Snoqualmie mayor branches into knife making

Fuzzy Fletcher is no stranger to tools. He’s been a toolmaker and… Continue reading

Screenshot
North Bend’s Taste of Sno-Valley energy bars win award

Sno-Valley’s Cynergy energy bar won the New Product Award from the Specialty… Continue reading

The Moe Vegan food truck serves meals at the city of Kent’s annual Community Thanksgiving Dinner on Nov. 21, 2020. Sound Publishing file photo
King County fire marshals offer regulatory relief to food trucks

39 fire authorities have reportedly agreed to standardize fire codes and inspections.