A high-tech office property on the Eastside has traded hands. In a newly recorded transaction, Redmond’s Willows Ridge Tech Center sold for about $20 million, according to public documents. The seller of the property is an entity affiliated with Magoon Enterprises LLC, while the buyer in documents is listed as Medina, Wash.-based Par 5 Willow Ridge Tech Center.
The property is located at 12324, 12320, 12318, 12316 & 12314 134th Court NE. King County parcel data indicates that of the two parcels included in the deal, the first is developed with a 1985 masonry building totaling 20,818 square feet. The building sits on just over two acres of land. The second parcel is similar in size. Developed with a 27,452 square foot building, the property includes 1.7 acres of land. The asset is designated as high-tech and flex space.
The property is located in Northern Redmond, not far from the Lake Washington Institute of Technology and a number of other companies such as Stryker, Aerojet Rocketdyne, Otak and TTI. 60 Acres North Field, as well as The Village at Totem Lake, a shopping center, are also located nearby.
Demand for office space–from both tenants and investors–remains high on the Eastside, where generally direct space and vacancies have remained low. At the end of the first quarter, the EAstside had just about 10.28 million square feet of office inventory and a vacancy rate of 9.3 percent across all asset classes. Average direct asking rents came to about $46.91 per square foot, according to reports from Colliers International.
Looking ahead, the office market will be bolstered by widespread vaccination efforts and the region’s existing fundamentals.
“The dynamics that fuel Seattle’s growth are the same as before the pandemic: large employers, high quality of life, and diverse industries throughout the region, Colliers states in its report. “These factors will drive Puget Sound’s recovery, and likely have different results across the market. Suburban areas are expected to see elevated attention and absorption in the short- term.”
As major employers return to the office, such spaces will become once again more desirable, increasing investor and developer appetites.