Already a huge amount of office space is under construction in Seattle’s Lake Union real estate submarket, and one company is moving toward starting another big project there.
Construction workers are demolishing the old building from where KING-TV broadcast for nearly seven decades. KING moved to Sodo earlier this year, making way for a two-building, 12-story office/retail project called 333 Dexter
The developer, Kilroy Realty Corp., has not announced any leases and isn’t saying definitely whether it will start building with no signed deals, which would make it a speculative project. But the company says 333 Dexter will be done by January 2019.
“We have quite a bit of interest in the project, so I wouldn’t call it speculative,” Kilroy Executive Vice President Rob Paratte said this week. “Based on discussions we’re having with a couple of groups, we’re very confident in our delivery date.”
The Lake Union submarket is the hottest in the region, with the vast majority — 72 percent by JLL's calculations — of the region’s second quarter “net absorption” occurring there. Net absorption measures the total square feet occupied minus the square feet vacated.
“Are we concerned about the South Lake Union market? Absolutely not,” Paratte said.
The development site is between two major employers, with the Bill & Melinda Gates Foundation and Amazon’s headquarters two blocks on either side of 333 Dexter.
Paratte said potential tenants interested in 333 Dexter are not solely tech companies, and that the prospects either operate in Seattle already or are planning to move here.