Office space leases pick up

  • By Eric Fetters Herald Writer
  • Wednesday, March 26, 2008 11:04pm
  • Business

EVERETT — The amount of vacant office space leased in Snohomish County improved during the first quarter, officials said.

And that’s reason enough for optimism after two years of mostly flat or slightly worsening vacancy rates.

“There’s going to be more activity,” said Gary Bullington, a director at Cushman &Wakefield. His firm reported that just under 19 percent of the county’s office space stood vacant during this first quarter, down from more than 20 percent in 2007’s final quarter.

About 68,000 square feet of space have been leased this quarter, with the Cobalt Group’s new branch office in Lynnwood accounting for 40,000 square feet alone. That’s not a tremendous amount leased, but it’s enough to push down the rate by a percentage point or so.

The last time the county’s office vacancy rate dropped below 19 percent was the first half of last year.

“That office market never gets red hot, but the stream of activity we’ve seen in the last two quarters is more than I’ve seen in years,” said Gregg Riva, a senior vice president with the local office of Colliers International.

Some of the same things that Cobalt executives cited this week in their decision to locate in Lynnwood, including favorable lease costs and a good pool of qualified workers in the area, are attracting interest from other companies. David Kleitsch, Lynnwood’s economic development director, said other sizable leases of office space in the city are in the works, a fact both Bullington and Riva confirmed.

The countywide average annual cost for first-class office space has slipped under $25 per foot, compared with more than $38 in downtown Seattle and Bellevue.

That cost disparity helps to make office space in Snoho­mish County more attractive for companies that don’t need to be located right in Seattle, Bullington said.

Demand, and thus high prices, for space in Seattle and Bellevue doesn’t seem ready to ebb. Marcus &Millichap recently ranked the Seattle area as the nation’s No. 1 market for office properties in the real estate investment firm’s annual National Office Property Index.

Cushman &Wakefield estimated the vacancy rate for industrial space, used for manufacturing and warehouse uses, has fallen to just more than 6 percent in Snohomish County, the lowest level in more than four years.

The recent announcement that an aerospace-related company plans to move from Seattle to the Maltby area, along with similar interest from other manufacturing companies in relocating to Snohomish County, means that vacancy rate likely will stay low, Bullington said.

Reporter Eric Fetters: 425-339-3453 or fetters@heraldnet.com.

Talk to us

> Give us your news tips.

> Send us a letter to the editor.

> More Herald contact information.

More in Business

Lily Lamoureux stacks Weebly Funko toys in preparation for Funko Friday at Funko Field in Everett on July 12, 2019.  Kevin Clark / The Herald)
Everett-based Funko ousts its CEO after 14 months

The company, known for its toy figures based on pop culture, named Michael Lunsford as its interim CEO.

The livery on a Boeing plane. (Christopher Pike / Bloomberg)
Former Lockheed Martin CFO joins Boeing as top financial officer

Boeing’s Chief Financial Officer is being replaced by a former CFO at… Continue reading

Izaac Escalante-Alvarez unpacks a new milling machine at the new Boeing machinists union’s apprentice training center on Friday, June 6, 2025 in Everett, Washington. (Olivia Vanni / The Herald)
Boeing Machinists union training center opens in Everett

The new center aims to give workers an inside track at Boeing jobs.

Some SnoCo stores see shortages after cyberattack on grocery supplier

Some stores, such as Whole Foods and US Foods CHEF’STORE, informed customers that some items may be temporarily unavailable.

People take photos and videos as the first Frontier Arlines flight arrives at Paine Field Airport under a water cannon salute on Monday, June 2, 2025 in Everett, Washington. (Olivia Vanni / The Herald)
Water cannons salute Frontier on its first day at Paine Field

Frontier Airlines joins Alaska Airlines in offering service Snohomish County passengers.

Amit B. Singh, president of Edmonds Community College. 201008
Edmonds College and schools continue diversity programs

Educational diversity programs are alive and well in Snohomish County.

A standard jet fuel, left, burns with extensive smoke output while a 50 percent SAF drop-in jet fuel, right, puts off less smoke during a demonstration of the difference in fuel emissions on Tuesday, March 28, 2023 in Everett, Washington. (Olivia Vanni / The Herald)
Sustainable aviation fuel center gets funding boost

A planned research and development center focused on sustainable aviation… Continue reading

Helion's 6th fusion prototype, Trenta, on display on Tuesday, July 9, 2024 in Everett, Washington. (Olivia Vanni / The Herald)
Helion celebrates smoother path to fusion energy site approval

Helion CEO applauds legislation signed by Gov. Bob Ferguson expected to streamline site selection process.

Pharmacist John Sontra and other employees work on calling customers to get their prescriptions transferred to other stores from the Bartell Drugs Pharmacy on Hoyt Avenue on Wednesday, July 2, 2025 in Everett, Washington. (Olivia Vanni / The Herald)
Bartell Drugs location shutters doors in Everett

John Sontra, a pharmacist at the Hoyt Avenue address for 46 years, said Monday’s closure was emotional.

Support local journalism

If you value local news, make a gift now to support the trusted journalism you get in The Daily Herald. Donations processed in this system are not tax deductible.