Office vacancies drop in downtown Bellevue; still higher than years past

The office vacancy rate in downtown Bellevue dropped by more than half a percent this quarter, but the rate remains significantly higher than it was a year ago, according to a report released Monday by Colliers International.

The office vacancy rate in downtown Bellevue dropped by more than half a percent this quarter, but the rate remains significantly higher than it was a year ago, according to a report released Monday by Colliers International.

More than 14 percent of offices remain vacant downtown, with more than 1 million square feet of office space unoccupied. In November 2009, the vacancy rate was approximately 10 percent.

Colliers’ Bellevue Managing Director Bret Jordan called the change in vacancy “incremental progress,” noting that many areas continue to struggle with the new business environment the economy has created.

“We’re in a market where one step forward is still offset by another step back somewhere else,” he said.

City Center Bellevue and Plaza Center have the two highest vacancy rates among the largest office towers in town with 158,000 of City Center’s 486,000 square feet available (32.6 percent), and 101,000 of Plaza Center’s 345,000 square feet available (29.5 percent).

City Center Bellevue lost more than 70,000 square feet of occupied office space, or almost 15 percent of its total size. The Key Center also experienced a high jump in vacancy, losing 60,000 square feet of its occupied space.

Bellevue remains below Seattle in vacancy rates, continuing a consistent trend. Downtown Seattle office buildings experienced 15.6 percent vacancy this quarter, with 17.5 percent vacancy throughout the city.

Jordan said technology companies like Clearwire have been the primary adders of space this quarter.

Nat Levy can be reached at 425-453-4290.