SMARTCAP RESEARCH- JANUARY 2022 NEWSLETTER

This month, SMARTCAP employees had the privilege of attending an event hosted by the Arlington Food Bank. The Arlington Food Bank serves Arlington and its surrounding communities and since the beginning of the pandemic, requests to have food brought directly to homes surged as more people than ever were suddenly homebound. The idea to purchase a Mobile Food Truck was suggested, and as soon as SMARTCAP found out about this, we wanted to help in any way we could. SMARTCAP made a donation to be put towards the purchase of a mobile food truck that will serve thousands of people each month. The food truck will be packed with fresh produce and so many other necessities and will come directly to the homes of those in need, allowing them to select groceries from the comfort of their own home.

SMARTCAP has been developing in the Arlington/Marysville area since 2018 and over the years, we have built very strong relationships with city officials, and so many members of the community. SMARTCAP has brought 18 businesses to the area, generating jobs and income for many people. This area will always hold a very special place in our hearts, and it was an honor to give back to a community that means so much to us. 

For decades, Seattle has been famous for being the home of Microsoft and Amazon. By the mid-2000’s, companies including Google, Facebook, and Expedia moved to the Pacific Northwest, solidifying Seattle as one of the biggest and fastest growing technology hubs in the country! Because of the demand from tech companies, Seattle now has the third-most office space underway in the nation, after New York and Boston. According to a CoStar report, the Seattle region has 10.3 million square feet of office space under construction, downtown Bellevue, Redmond, and Lake Union being the most active areas. All three are ranked in the top 20 office nodes in the nation for construction activity.

Downtown Bellevue has the most construction of any office node in the nation outside of New York City, with more than a million square feet of space delivered in the past year and an additional 4.3 million on its way. Construction in Bellevue is mainly driven by Amazon’s expansion, as the tech giant has preleased or owns nearly all of the space under construction. Amazon is also developing a million square foot tower, Bellevue 600, and plans to break ground on an additional tower at that location.

In SMARTCAP’s headquarters, Redmond, Microsoft has been modernizing its campus to include an additional 2.5 million square feet of office space, increasing the amount of office space in Redmond by nearly a third.

Much activity has shifted to the Eastside of Lake Washington; however, Seattle’s Lake Union neighborhood has 1.4 million square feet of office space underway, or the equivalent of a 9% increase over existing stock.

While there are still many challenges facing the office market, developers have a positive outlook on the future as development activity is near historic highs. Microsoft, Amazon, and Meta have continued to expand operations and the Puget Sound region is seeing a new wave of office construction that will likely not peak for another year.