Viewing entries tagged
office space

Top Seattle Office Space Stories

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Top Seattle Office Space Stories

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The Latest Buzz in Seattle Office Space - February 2015

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The Latest Buzz in Seattle Office Space - February 2015

Seattle Tenant's - Trending Story: 

Bay Area Transplants

Where is the next wave of Seattle tenant's coming from? 

In 2014, Techstars reported a 65% increase in startup company applications from San Francisco from the previous year. In addition to startups, many large San Francisco tech giants have moved to Seattle, such as Alibaba, Apple and Ebay. As we heard repeatedly at Geekwire's Startup Day event, companies find that Seattle employees are much more loyal than those in the Valley and an increasing number are opening engineering offices in Seattle to recruit experienced and dedicated talent.  

Check out the list so far...

New Seattle Office Developments: 

Click to view a map and details of Seattle's new and future office developments

Seattle Funding Update: 

Click on the image below to find out which companies received funding in December 2014 - January 2015.

New Seattle Office Leases: 

Q4 2014

Click to view PDF

New Blocks of Office Space Seattle: 

(20,000+ RSF / Past 120 Days)

Click to view PDF

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Impinj Signs at 400 Fairview!

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Impinj Signs at 400 Fairview!

We are excited to announce that Impinj is moving it's headquarters to 400 Fairview

They will occupy all of floor 11 & 12 for a total of 52,000 square feet, then expanding to 60-64,000 square feet of office space in Seattle, WA.  Read more below:

Half full: New lease pushes 400 Fairview office tower to 50 percent leased

 - Puget Sound Business Journal

Impinj leaving long-time Fremont HQ, heading to larger digs in Seattle’s South Lake Union neighborhood

 - Geekwire

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Who Pays Your Commercial Real Estate Broker?

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Who Pays Your Commercial Real Estate Broker?

Every company, ESPECIALLY startups are on a budget. Nobody wants to pay for a service if they can avoid it.  So how does a broker that helps you find office space get paid? The good news – it’s not you.

The owner pays the commercial real estate brokerage fees in leasing transactions. There is a listing broker and a tenant broker involved in almost every transaction. Owners budget for brokerage commissions for new leases and renewals, and they issue commission checks directly to the brokers when your lease is signed.

In the Seattle office market, the tenant’s broker receives a commission of $1.00 per square foot per year of lease term and the landlord’s broker is paid half that amount, $0.50 per square foot per year.  If the tenant doesn’t have a broker the owner will increase their broker's (the listing broker) commission to $1.00 per square foot.  

Tenants unfamiliar with the leasing process assume they can capture savings by not using a broker and saving the owner the cost of the commission. They figure that by lowering the commissions paid by the owner by one-third they will get a better deal. Unfortunately, in most cases the opposite is true. 

A building’s value is derived by its income stream. Therefore, lower rental rates = lower building value. Owners will not lower your rate based on the savings they achieve by not paying your broker a commission.

You may be asking — “Okay, but can I get the savings in form of another concession, such as free rent?”

This is almost never the case. Without a broker negotiating on your behalf, you aren’t armed with the market data to negotiate the best rate and concessions. A good broker will have recent office space comps and proposals from your target building and its competing projects. They’ll also know what other companies are in the market that might be competing for your office space.

Finally, It’s very time consuming for a landlord and the listing broker to walk an unrepresented tenant through a lease negotiation and the success rate of executing a lease with an unrepresented tenant is low. Therefore, there’s no incentive to pass savings to them. Landlords put up with the added work and frustration because they know they'll get a better deal out of you...

In almost all cases without a tenant rep broker, either the tenant accepts too little and ends up getting a worse deal, or they over negotiate and the landlord doesn’t take them seriously.

Since the landlord pays the brokerage fee, why wouldn't you want an advocate on your side who understands market conditions, is familiar with the terms of recently completed leases, and can help you formulate a detailed negotiation strategy?

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Hoteling, Hot-Desking and the Un-Office

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Hoteling, Hot-Desking and the Un-Office

Hoteling, also known as unassigned seating in office space programming, is becoming increasingly popular. Many have attributed it to decreased operating costs, i.e. less desks dedicated to employees equals less space needed. However, lately creative and technology firms have adopted this office space model, as companies look to make unique design choices for their employees environment’s. Companies are now viewing office space as an extension of the home and are seeking to create more comfortable spaces for their employees. 

Would you choose a cubicle or a cafe?   

When you’re at your house do you always sit in the same chair? 

If given the choice, people generally choose a office space best suited to the task they are working on or group they are working with. Companies are catching on. They’ve started to notice that promoting comfortable work environments, usually leads to better work and happier employees. This new trend in hoteling (without assigned desks) is now being called “hot-desking”.  Several months ago we were meeting with Jarrod Arbini from Weaver Architects and he referred to it as the “Un-Office”.  Whatever you want to call it, it is becoming the latest trend in office space planning.  What was once was thought of a way to decrease overhead costs is actually becoming a way to attract the best talent, and a new and possibly better way for people to work.

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Exposed Office Space

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Exposed Office Space

Goodbye acoustical tile, vanilla walls and drab carpet! For years covering up structure was perceived as high-end and modern. Today there is a new trend in office space. Almost every cool, creative company (or those that want to be) are asking for exposed ceilings, brick & beam and polished concrete. Why is this new look so appealing? It’s not your parent’s office! 

Most companies are leaning towards an open environment that allows for more flexibility and teamwork. So why not go the extra stretch and not only knock down the thick walls, but also strip away all of the old second generation space. The space ends up feeling more like a loft than an office. It is reflective of the people working there, creating and designing, versus an uninspired vanilla box. 

The only downside – cost. Many tenants think exposed ceilings are cheaper, but in reality all of the cleanup involved to make them look nice can be very expensive and take up a significant portion of your tenant improvement allowance. Is it worth it? Below are photos of several Seattle office tenants... We’ll let you decide…

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Where's My Work Beer?

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Where's My Work Beer?

Just another day at the office…Several months ago we visited Twitter’s office in San Francisco, where we noticed multiple beer fridges on every floor. When we asked an employee how they regulate consumption, he said “It’s on an honor system…we don’t.”  

We’ve seen an increasing number of companies talking about bars on tours and planning them in their space. In fact, we recently moved our office space to WeWork in South Lake Union where they offer local rotating kegs with free beer on tap.

So what’s with this new trend or rather a throwback to an earlier era?  Workdays, especially for technology, media and start-up companies, are stretching past happy hour. As a perk to lure talent, keep employees late and encourage social and work hours to blur, companies are installing beer fridges, stocking full bars, and even putting speakeasies and full taverns.  Check out these Seattle office bars…

WeWork | South Lake Union

We Work a co-working office space in South Lake Union and many major markets offers its members free beer around the clock and weekly networking happy hours.

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Eggs and Private Offices - Good or Bad

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Eggs and Private Offices - Good or Bad

We recently met with Shannon and Kyle Gaffney at SkB Architects and they brought up a good point, health opinions regarding eggs are constantly changing (keep reading… this is going somewhere). It seems like every month we hear a different health view regarding egg yolks – good cholesterol, bad cholesterol, which is it?!

Similarly we’ve seen this trend in office space, as private offices become less of a status symbol and companies tear down their cubicle walls. However, the result can make private conversations and trying to hear yourself think pretty unbearable.

To solve this issue companies are starting to add small meeting rooms and phone rooms, which allow for private conversations and team collaboration, but still keep people together. Similarly, Seattle building owners are thinking about this in their lobbies and adding in lounge and retail space to fill this need.  Check out what these Seattle tenants and owners are doing…

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