Amazon Travel to land in Downtown Bellevue
Posted on October 11, 2016
Specializing in Corporate Real Estate Advisory Solutions
Last week Geekwire reported that Amazon has leased the entire Centre 425, Schnitzer Northwest’s 345,000 square foot downtown Bellevue office building. The building is still under construction and is expected to be completed in 2017. As the single tenant, Amazon is able to create a secure environment for their intellectual property and for employees.
The announcement is notable for a few reasons.
First, this lease establishes a large beachhead for Amazon in the Eastside. With many thousands of employees who live east of the lake, you can bet many are silently cheering – especially if there will be some hoteling space for employees to drop in and use.
Second, Amazon Travel is expected to be the main occupier of the new Bellevue building. Expedia headquarters is two blocks away. In two years Expedia will move their operation to the Interbay area (north of downtown Seattle). What a genius creative plan by Amazon Travel! They are perfectly positioned to recruit all of the Expedia employees living on the Eastside who are now dreading the additional 90-minute round-trip daily commute they’ll face when Expedia moves.
Third, the lease is another home run for Schintzer Northwest, who began construction on Centre 425 as a speculative development. Reaching 100% with one tenant is a developer’s dream – and maximizes profits.
Finally, many tenants and brokers expected a return to market equilibrium with the new office buildings in Bellevue during this construction cycle. The strong demand is filling almost all of the new space, assuring the continuation of a landlord’s market and rental rates that will continue to creep up.