Underscoring the growing attraction and growth of the Renton submarket, Newmark Knight Frank (NKF) has announced a 23,700-square-foot lease with AECOM at Triton Towers, a Renton office property consisting of three, seven-story steel and concrete buildings, totaling 407,000 square feet. The AECOM lease caps a total of 61,000 square feet of new leases this year at the class A office campus. For AECOM, the lease is a relocation from Seattle to Renton.
“Renton has earned a top spot as one of the fastest -growing large municipalities in the region. Its affordability when compared to Seattle and Bellevue is increasingly attractive to a wide base of industries as demonstrated by the leasing activity at Triton Towers,” said NKF Senior Managing Director Cavan O’Keefe. According to NKF, the average cost of office space in the Southend market is 39 percent to 43 percent below Eastside and Seattle full service rents, respectively.
NKF’s O’Keefe, along with Executive Managing Directors Mike Schreck and Tim O’Keefe, represented building owners Hines and funds managed by Oaktree Capital Management LP (Oaktree) in the lease with AECOM who will relocate to Triton Towers early next year. In addition to this deal, recent 2018 activity at the property includes:
- Genoa Healthcare occupied 29,900 square feet of space, relocating its corporate headquarters to Renton from Tukwila
- New leases with Collinear Group, LLC, Westways Staffing and Eastside Oral Surgery
“The increasing cost of living and working in Seattle continues to drive tenant activity in Renton. The workforce is moving here to benefit from a lower cost of housing plus workers gain from a reverse commute. The Triton Towers campus also has walkable amenities and transit hubs which many Southend buildings lack,” added O’Keefe.
Triton Towers, located at 707 S. Grady Way, is one of the few buildings with available space in large blocks. It is 13 miles southeast of Seattle and 11 miles from Bellevue on the southern shore of Lake Washington and situated with prominent visibility and convenient access to three major freeways, I-405, I-5 and SR-167, and is minutes from the SeaTac International Airport.
According to NKF 3Q 2018 Puget Sound Office Market report, the Puget Sound office market has seen unprecedented growth with Seattle and Bellevue experiencing sub 6 percent vacancy rates and falling, and record lease rates announced daily. “While rates continue to rise in Seattle, we will see more and more tenants look to Renton for relief,” noted O’Keefe.
Hines is a privately owned global real estate investment, development and management firm, founded in 1957, with a presence in 207 cities in 24 countries and $116.4 billion of assets under management-including $64 billion for which Hines provides fiduciary investment management services and $52.4 billion for which Hines provides third-party property-level services.
Hines has 109 developments currently underway around the world, and historically, has developed, redeveloped or acquired 1,319 properties, totaling over 431 million square feet. The firm’s current property and asset management portfolio includes 527 properties, representing over 224 million square feet. With extensive experience in investments across the risk spectrum and all property types, and a pioneering commitment to sustainability, Hines is one of the largest and most respected real estate organizations in the world.
Oaktree is a leader among global investment managers specializing in alternative investments, with $124 billion in assets under management as of September 30, 2018. The firm emphasizes an opportunistic, value-oriented and risk-controlled approach to investments in credit, private equity, real assets and listed equities. The firm has over 900 employees and offices in 18 cities worldwide. For additional information, please visit Oaktree’s website at http://www.oaktreecapital.com/
About Newmark Knight Frank
Newmark Knight Frank (“NKF”), operated by Newmark Group, Inc. (“Newmark Group”) (NASDAQ: NMRK), is one of the world’s leading and most trusted commercial real estate advisory firms, offering a complete suite of services and products for both owners and occupiers. Together with London-based partner Knight Frank and independently-owned offices, NKF’s 16,000 professionals operate from approximately 430 offices on six continents. NKF’s investor/owner services and products include investment sales, agency leasing, property management, valuation and advisory, diligence, underwriting, government-sponsored enterprise lending, loan servicing, debt and structured finance and loan sales. Occupier services and products include tenant representation, real estate management technology systems, workplace and occupancy strategy, global corporate services consulting, project management, lease administration and facilities management. For further information, visit www.ngkf.com.