Say what you will about the local economy – but the sky continues not to fall on office leases and rents.
Colliers International is out today with its 4th Quarter numbers for the Puget Sound region, and Pierce County landlords are not doing as bad as, for instance, the retail industry. Actually, they’re doing relatively well.
According to Colliers, Pierce County absorbed 58,200 square feet during the quarter, thus posting a positive absorption number. Vacancy rates "fell as a result of many small office spaces being leased, specifically in Fife, South Tacoma and the central business district of Tacoma."
The submarket in Fife "saw the most move-ins absorbing 27,000 square feet concentrated in three Class A office buildings: Port Business Center, Trans-Pacific Trade Center and the Fife Business Center."
In Gig Harbor, the Mallards Point Building Two "was delivered 40 percent absorbed."
Overall, the total vacancy rate for Pierce County office space stands at 8.43 percent, Colliers said. The rate one quarter ago was 8.62 percent, and a year ago was 7.23 percent.
The vacancy rate in Seattle is currently 9.59 percent, up from 9.19 percent a quarter ago and 8.37 percent a year ago.
In South King County, the vacancy rate is 20 percent, up from 18.7 percent in the third quarter and and 18.4 percent a year ago. In Federal Way, specifically, the current vacancy rate is 30.14 percent for Class A, B and C properties combined, with Class B properties seeing a 40.59 percent vacancy rate.
Concerning specific areas of Pierce County, Colliers reports:
&bull The vacancy rate for Class A properties in Tacoma’s CBD stand at 1.13 percent; for Class B, 9.86 percent; for Class C, 14.96 percent.
&bull In Puyallup and Sumner, Class A vacancies are at 7.97 percent; Class B at 18 percent, and Class C (only 45,000 square feet) fully occupied.
&bull In Lakewood, Class A vacancies stand at 6.88 percent; Class B at 8.06 percent; and Class C at 16.66 percent.
&bull In Gig Harbor, Class A vacancies are at 13.34 percent; Class B at 20.23 percent; and Class C at 8.91 percent.
In total, Pierce County currently offers 3.098 million square feet of Class A space; 4.576 million square feet of Class B space; and 1.153 million square feet of Class C space.