Snohomish County added a bunch of new industrial buildings in the last quarter in 2008, as developers believe the Boeing Co. would ramp up its effort on the 787 Dreamliner project this year, a commercial expert said Wednesday.
Between October and December, 156,397 square feet of new industrial buildings were added to a market that includes most of the county north of Bothell, according to new figures from Cushman &Wakefield, a commercial brokerage firm. That was up from the third quarter when no such building was completed. Throughout 2008, the market added 548,212 square feet of industrial buildings.
As industrial space became limited and more expensive in Seattle and Bellevue areas, demand has been rising in Snohomish County, said Gary Bullington, the firm’s senior director in Bellevue. The Boeing Co. plans to do the 787’s first flight in the second quarter of this year. Once Dreamliner production picks up and stabilizes, that could boost industrial activities in the county. Boeing plans to deliver its first 787 by March 2010.
“There is a potential,” Bullington said. “And I’m a strong believer that it will happen.”
In the fourth quarter, 7.6 percent of industrial space in most parts of Snohomish County sat vacant, according to Cushman &Wakefield. That’s up from 7 percent in the third quarter.
Meanwhile, the amount of empty office space in the market declined slightly in recent months. In the fourth quarter, 16.7 percent of office space remained empty. That was down from 18.2 percent in the third quarter.
Bullington said he believes the office vacancy rates would decline further in Snohomish County, where the average asking annual rate for premier office space was $25.35 per square foot in the fourth quarter. That compares with $39.48 per square foot in Bellevue and $38.83 per square foot in Seattle.
As businesses in Seattle and Bellevue try to cut expenses to survive the recession, they may move parts of their operations to Snohomish County, Bullington said. That could help companies save on rent as well as helping employees who commute.
“Many people already live in Snohomish County” and work in King County due to lower housing costs, he said.
Reporter Yoshiaki Nohara: 425-339-3029 or ynohara@heraldnet.com.
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