Compliments of Jason Smith of Kidder Mathews, attached is a Seattle-area office real estate market review for Q1 2013. As the report notes, the first quarter included a quiet encore of the performance seen near the end of 2012. Leasing activity was modest, but positive, tenants showed renewed interest in the middle of the Seattle central business district (CBD), Amazon leased any large space that came available in the CBD, and investors continued to be bullish on the Seattle office market.

The performance of the office market is especially encouraging in light of the fact that general economic indicators continue to vacillate. One example significant to the office market is that after six quarterly increases in forecasted 2013 job growth, the March 2013 Puget Sound Economic Forecaster reduced the growth rate to 2.6%. It was a minor adjustment, reflecting the inability of the national economy to gain consistent momentum and the likely effects of the sequester. Nonetheless, the overall performance of the office market is still expected to be similar to that seen in 2012.