Industrial space is hard to come by in Bellevue, proven by the lowest vacancy rate since the Great Recession. Bellevue’s rate of vacancy dropped 3.8 percentage points to 6.8 percent in 2015’s third quarter, according to a report from Cushman & Wakefield.
The scarcity of space has to do with a low rate of construction during the past few years coupled with an increase of new businesses and high-growth mid-size companies. Even with the new construction completed in Bellevue this year, only 289,603 square feet is available to be leased within the city limits.
“During third quarter of last year, there was no construction in the Bellevue industrial market; this year, there is currently 430,050 square feet under construction,” Dave Magee, Washington region market leader with Cushman & Wakefield’s commerce division, said in a statement. “With lower vacancy and increasing interest from the tech sector, the area will attract new tenants to fill the space provided by new product under construction.”
According to the Cushman & Wakefield report, Kirkland has the highest vacancy rate in the region, at 9.8 percent, followed by Woodinville and the state Route 522 corridor at 7.3 percent. Bellevue had the third highest rate of vacancy.
Redmond was divided into three areas: Overlake (2.4 percent), Willows (4.3 percent), and East (2.9 percent).