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SMARTCAP RESEARCH- MAY 2022 NEWSLETTER

Tech companies continue to expand to the eastside

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The list of tech companies expanding to the Eastside of Lake Washington continues to grow, with Snapchat recently revealed as the newest tenant in Bellevue. Snapchat’s parent company, Snap Inc, has leased 76,847 SF of space in Mid Station Bellevue, which is located just southeast of Amazon’s corporate headquarters.
 
Snap Inc’s move to Bellevue follows the pattern we are seeing of tech companies expanding to the Eastside. Meta has offices scattered through the SODO district and Westlake neighborhood and recently expanded to Bellevue’s Spring District where it leases several offices and purchased the space that was meant to be REI’s headquarters. Amazon and TikTok’s parent company, ByteDance, have also made their presences known on the Eastside.

puget sound ranks as 3rd best region to invest in industrial real estate


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The Puget Sound region is ranked fifth overall in the nation of top commercial real estate markets to invest in, and third as the best place to invest in industrial real estate, behind Los Angeles and Orange County. This study, conducted by CrowdStreet, noted that industrial rents in coastal markets, such as the Puget Sound, are expected to rise 40% over the next two years.

CrowdStreet noted “Seattle has had a 9% year-over-year increase in port volumes. This increase has fueled industrial demand and led to a 4% vacancy rate in its industrial market. Adding more fuel to Seattle’s already blistering industrial market, where a $367 per square foot average sales price for industrial properties makes the MSA the nation’s most expensive, is the fact that a substantial number of industrial leases are expiring this year and were inked before the massive surge in e-commerce instigated by the pandemic. Prices to lease these industrial properties are up an average of 25% over the rates of the five-year contracts that are expiring.”

kirkland 405 corporate center building g sells for over $12mm

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Kirkland 405 Corporate Center's "Building G" was recently sold for $12.5mm, with the buyers listed as Eastside Christian Fellowship and a partnership with its church member investors. The flex business property is 31,031 SF of rentable space, adjacent to I-405, and less than 10 minutes from shopping centers and a Whole Foods Market. This sale was initiated by the buyer in an off-market transaction amid low inventory and high demand for similar properties. 

meet smartcap's mascots, george and mochi!

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Over the years, SMARTCAP has been lucky enough to introduce many of our employees to our network of investors through in person events and, more recently, Zoom! What many of our investors may not know is that we have two VIP (Very Important Pup) "employees", Mochi Holloway and George Shoultz, at the SMARTCAP office with us every day! When these girls aren't going from office to office getting head scratches and cuddles, you can typically find them in the break room hoping for a treat or racing down the hallway together. Aside from being adorable to look at, did you know having dogs in the office provides a number of benefits to employees?

1. Dogs reduce stress- when you pet or cuddle a pup, your body releases the stress-reducing hormone oxytocin.


2. Dogs increase teamwork and morale- dogs have a special way of lightening the mood and making people smile, which boosts morale in the workplace.

3. Dogs encourage regular breaks- taking breaks is necessary for employees to perform optimally, so the opportunity to take your dog for a walk around the block not only provides physical activity, it also boosts brain power.

4. Dogs increase productivity- regular breaks bring an increased level of productivity, as people come back from a quick break feeling refreshed and ready to tackle projects.

 

From Mochi, George, and all of us at SMARTCAP, have a great month!

TAGS: Musings