The first quarter office market statistics for the Bellevue CBD reflect a market in limbo, as nearly 75,000 square feet of office space was negatively absorbed, causing vacancy rates to tick up slightly to 7.23% in Downtown Bellevue.
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However, lease rates continued to rise, reaching $38.67 on average; a 2.5% increase over last quarter. With the dormant office stats for the first quarter of 2008, and the increased anxiety of a softening local economy, the rumor that Microsoft WILL be leasing City Center Plaza – a deal that has been on again off again – would undoubtedly strengthen the downtown office market. That potential lease would leave Bentall’s Summit Phase III, a project that is not scheduled to be delivered until mid December of 2009, as the only office development available for lease.
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