The early part of 2000 is similar in some ways to a decade ago. The Puget Sound real estate community is again overflowing with optimism. Our region is now a mainstay on the national and international commerce stage thanks to Boeing, the now monolithic Microsoft Corp., and the innumerable companies that call Seattle home. The Seattle office vacancy rate is at an all time low of 2.7 percent. It was closer to 16 percent in 1990.
Rental rates continue to move higher.
Downtown office rental rates increased in excess of 12 percent from a year ago. This is on top of more than 15 percent the previous year and 15 percent the year before that. There are currently more than 2.3 million square feet under construction in the Seattle office market, 6.7 million if you include the Eastside and South End markets. The three-building 401 Elliott West project is 90 percent leased. These projects total approximately 1.5 million square feet alone.