In a big move that has everyone scratching their heads…the Puget Sound Business Journal reported last week that Amazon will market for sublease all 722,000 SF in the yet to be completed downtown skyscraper.
Amazon has recently been on a leasing spree just to the east across Lake Washington in downtown Bellevue. The decision to sublease space in downtown Seattle is less about economic hardship and more about sending a clear message to Seattle’s city council, who has been historically anti-business.
The news of 722,000 SF coming back on to the market bodes very well for the other large tech companies who are actively looking for space at the moment. The 722,000 square feet equals about a third of the market’s new supply. This will flip the supply and demand curve for 2020, and slow the acceleration of Class A rental rate increases.
Several rumors point to Apple, and/or Convoy taking up the remaining space, listed at $45/NNN/SF. Based on the industry standard of one employee per 150 square feet of office space, Rainier Square would have room for some 4,800 full-time employees.
It will be interested to see how this plays out… stay tuned!