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Researcher’s Notebook: Rise of co-working space shakes up this year’s list of the largest office occupiers in the Puget …

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Research Director, Puget Sound Business Journal

Jul 5, 2018, 11:16am PDT

More than 5.8 million square feet of office space is under construction in the Puget Sound region. While that’s making room for companies to sign large leases in Seattle, Bellevue and surrounding areas, a rise in co-working space is roiling the traditional office leasing market.

This week’s Puget Sound Business Journal ranks commercial property managers, office occupiers and office buildings throughout King, Kitsap, Pierce and Snohomish counties.

Co-working firm WeWork is new to the Office Occupiers List.

Sandwiched between Google and T-Mobile on the List, WeWork ranks No. 7 with 902,000 square feet of office space in King County. The New York-based company is rapidly expanding in the Seattle area with leases on large blocks of space, including six floors at 1600 Seventh Avenue and 103,000 square feet in the Metropolitan Park campus.

WeWork’s business model has expanded beyond its short-term office leases for startups and freelancers.

It now provides satellite offices for some of the largest companies in the U.S., including Microsoft and IBM, and Amazon.com Inc. is rumored to be working with WeWork as well.

WeWork intends to continue investing in the Seattle area “in a big way,” Northwest General Manager Gina Phillips said this year.

One more big lease, and the company could eclipse Google or Starbucks for office space.


List updates:

The No. 1 companies on the Commercial Property Managers List and the Office Occupiers List — CBRE and Amazon — held their positions from last year’s list.

WeWork, ranked No. 7 on the Office Occupiers List, is expanding in the Puget Sound region, as well as in Charlotte, Los Angeles, Raleigh-Durham, San Diego, San Francisco and Washington, D.C.

New to the Office Buildings List are Lincoln Square North, Amazon Day One, Amazon Doppler and the Amazon-leased Troy Block. The office buildings list is poised for more major changes in the coming years as several new office towers come online:

In Seattle, Amazon’s Block 21, located at 2200 Seventh Ave., includes two towers with 850,000 square feet of office space, slated for completion in 2019.

Rainier Square, located at 1301 Fifth Ave., includes 722,000 square feet of office space, all leased to Amazon. The tower is currently under construction and expected to be completed in 2020 with office, retail and residential space, as well as a hotel.

2+U, located at 1202 Second Ave., includes 683,000 square feet of office space scheduled for completion in 2019.

Kilroy Realty Corp.’s 333 Dexter in Seattle’s South Lake Union neighborhood includes 630,000 square feet of office space. It’s expected to open in the summer of 2019.

Wright Runstad & Co.’s Block 16 and Block 24 of Bellevue’s Spring District collectively include nearly 500,000 square feet of new office space in Bellevue. Block 16 is slated for completion in January 2020, but the entire 36-acre development won’t be finished until 2028.

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