In a move blending past development success with future ambitions, Skanska, the largest general contractor in the Seattle region, is set to relocate its office to the 400 Fairview tower in South Lake Union. This 14-story building, developed by Skanska last decade and later sold, represents a significant milestone in the company’s history. The relocation to the 10th floor, as indicated by a recent permit application, is scheduled for spring 2024.
Spanning 26,000 square feet, the new space marks a continued commitment by Skanska to the burgeoning South Lake Union area. The move is set to coincide with the expiration of the company’s current lease in Alley 24, another Skanska-constructed building for Vulcan Real Estate, where it has been situated since 2006.
The impending move reflects a broader trend among companies adopting hybrid work models, leading to adjustments in office space requirements. Despite these changes, Skanska’s new office is planned to accommodate around 260 full-time employees, supporting a flexible work environment that includes remote and on-field arrangements, according to a report in the Puget Sound Business Journal.
According to the application, the tenant improvement work for the new space is valued at over $2.8 million, or roughly $108 per square foot.
The lease is on a direct basis with the owner, Pembroke Real Estate, which has owned the property since 2018. Pembroke acquired the property for $338.4 million, or approximately $970 per square foot, according to public records filed with King County. At the time, the property was the company’s first purchase in Seattle, and an expansion of its West-Coast portfolio, joining 140 New Montgomery and 100 California Street in San Francisco.
Skanska was represented by Matt Walters from CBRE, and JLL’s Lisa Stewart represented Pembroke.
Skanska developed 400 Fairview and completed it in 2015, selling 90 percent interest to TH Real Estate later that year for $235 million, according to previous reporting by The Registry. The building is a LEED V3.0 Gold, best-in-class office tower located in one of the most sought-after Seattle submarkets, South Lake Union.