Office market is sizzling in Bellevue

There's a mad scramble in Bellevue's central business district to finish construction on at least four new office buildings. With the lowest vacancy rates and the highest rental prices in the region, Bellevue is driving the local office market, according to Grubb & Ellis Co.'s preliminary office market figures released Wednesday.

New landlords want to take advantage of office rental rates, which jumped 19 percent to $32.06 per square foot per year in the fourth quarter, compared with a year ago.

"The group who ends up out of the ground first wins the projects," said Tim Smith, a senior adviser with the local office of Grubb & Ellis, a major Chicago-based real estate brokerage.
Tenants like to rent space in buildings that are finished. Many of the projects under construction were planned during the tech boom, but construction stalled during the bust. Now that construction has resumed, demand for space is expected to remain tight until the buildings are completed.