Supply-and-Demand for Seattle Office Space Ranked Highest in the Country

The Marcus & Millichap 2008 National Office Property Index (NOPI) recently reported that Seattle has passed New York on a score that ranks 43 markets on forward-looking, supply-and-demand indicators. In an article by National Real Estate Investor, much of Seattle’s demand is attributed to an above-average job growth in the technology industry. Apparently developers are to deliver more space this year than the previous four combined.

New York falls to second place, but still tallies the lowest vacancy rate in the nation. Citywide vacancy is expected to creep up 30 basis points to 5.7% this year. Leasing volume was about 25% less in 2007 from 2006 and new construction activity will dip from 3.4 million sq. ft. in 2007 to around 3 million sq. ft. in 2008. The largest completion will be the Durst Organization’s 2.1 million sq. ft. Bank of America Tower at One Bryant Park.

Here is the index’s top 10:

1. Seattle
2. New York City
3. Boston
4. San Francisco
5. Los Angeles
6. Washington, D.C.
7. Oakland
8. Riverside-San Bernardino
9. Las Vegas
10. Orange County

We believe this to be a good reason to have faith that our market is going to do just fine although movement in the market hasn’t been as active as we would have hoped it to be during this time of year.