By Meghan Hall
A single-tenant office asset at the heart of Seattle’s Belltown neighborhood has been posted for sale, offering investors a stable opportunity within the market: 200 Cedar. The property = is 100 percent owned and occupied by Grange Insurance. Guidance pricing was not immediately available.
According to an offering memorandum obtained by The Registry, Grange Insurance intends to occupy the 68,040 square foot asset for the next three years, and at the end of their lease term, vacate the property. The property was originally built out for Grange Insurance in 1954 and 1981. The two buildings that are a part of the property rise three and four stories, respectively, and have floor plates ranging in size from 4,500 square feet to 10,000 square feet. 69 parking stalls are also part of the asset.
Colliers International’s Institutional Capital Markets Team is marketing the property for sale on behalf of Grange Insurance.
The property is located near the heart of Seattle, in close proximity to cutting-edge medical institutions and major technology firms.
“Within blocks from the Property, you can find nationally acclaimed technology companies such as Facebook, Amazon, Apple, Netflix, Alphabet, (FAANG) and biotech companies such as Juno Therapeutics, Novo Nordisk, and Amgen,” states the property’s offering memorandum. “All of these companies are actively expanding in the immediate area and looking to lease as much space as possible.”
The asset is also close to a number of major Seattle attractions, including the Olympic Sculpture Park, Seattle Center and Space Needle. A number of restaurants and retail are also around, including Shir’s Sushi, CJ’s Eatery and The 5 Point Cafe.
At the end of the first quarter, vacancy increased 2.4 percent from 9.8 percent to 12.2 percent in Seattle. Sublease space makes up for a solid portion of the Seattle urban office market, at 4.6 percent or 6.7 million square feet. Recovery, notes Colliers, will take time, and vacancy will not likely dip below 10 percent until 2025 as companies figure out how to handle a hybrid work model where employees split their time between home and the office.
However, data from Colliers suggests that there could be light at the end of the tunnel thanks to widespread vaccinations and the current stability of asking rates of about $58.44 per square foot. Other fundamentals that have proven beneficial for the region, including dynamic employers, a high quality of life and growing talent pool are also expected to help the Puget Sound office market long term.
Colliers did not respond to The Registry’s request for comment in time for publication of this story.