By Joey Thompson – Reporter, Puget Sound Business Journal
Aug 28, 2023
The Puget Sound Regional Council is moving its headquarters to one of Seattle’s largest Class A office buildings — at an apparent discount.
The government-funded metropolitan planning organization has signed a 13.5-year lease at 1201 Third Avenue, filling 21,000 square feet on the tower’s fifth floor, the PSRC confirmed Monday. At $31 per square foot, the lease rate shows a marked discount for Class A office space in the city, which sees an average asking rate of $51, per a second quarter report from Newmark.
Founded in 1991, the PRSC is directed by elected leaders throughout King, Pierce, Snohomish and Kitsap counties to develop policies around regional growth, transportation and economic development planning.
The agency has occupied 27,000 square feet at Waterfront Place at 1011 Western Ave. for nearly 30 years. Its lease at 1201 Third begins Jan. 1. In a March presentation, the PRSC’s office committee said it sought modern, efficient and centrally located spaces with convenient access during its search.
Comparable spaces offered gross rents between $47 and $51 per square foot, the committee reported.
Under the deal, property owner Clarion Partners is also covering tenant improvement costs, estimated at $100 to $150 per rentable square foot. Other concessions include a six-month rebate of $565,000 and $5 per square foot for relocation and IT costs,
Larry Blackett of Kidder Matthews represented PSRC, which negotiated a turnkey lease. Gateway Construction Services is serving as general contractor for the tenant improvements.
Across Seattle, the office market continues to see low levels of activity, with overall the vacancy rate increasing to 14.1% in the second quarter, according to Newmark — up 1.5 points from the previous quarter.