Q2 2012 Seattle, Washington Office Property Sales Analysis

CRE Resources

View our Seattle, Washington Submarket Map

Q2 2012 Seattle, Washington Office Property Sales Analysis


If the current heated pace holds up, 2012 will be the strongest for Seattle area office property investment since 2007. For 25 completed transactions, first half 2012 amassed $1.25 billion in sales, 73.7% of the dollar total recorded by Reis for all of last year. The total for the second quarter alone for 15 completed sales was $933.4 million. Average selling price and mean cap rate for the period were $354 psf and 6.5%. In the quarter’s largest transaction, largest in a year, CommonWealth Partners paid Northwestern Mutual $480 million ($550 psf) for the 872,026-square-foot Russell Investments Center (the former Washington Mutual building) at 1301 2nd Avenue, Seattle. The 2006-built building, which re-filled rapidly following the demise of WaMu, was 3.0% vacant at time of sale. The deal closed in April at a 4.3% cap rate.

Deals since the quarter ended include KBS Strategic Opportunity REIT’s $78.7 million acquisition of the “sprawling” 46-acre QBE Corporate Campus office park in Bellevue, GlobeSt.com reported in August. The nine-building, 326,384-square-foot, 62.0%-occupied property will be renamed Bellevue Technology Center, according to the report. In addition, American Assets Trust, Inc. has entered into an agreement to acquire the 27-story “trophy LEED-EB Gold certified,” 497,000-square-foot City Center Bellevue office tower in downtown Bellevue, Thomson Reuters ONE reported in late July. A purchase price of “approximately $229 million” is cited.