Office Space Glut Hits Puget Sound Area

KOMO 4(TV)/1000(AM) News ^ | November 11, 2002 | Herb Weisbaum

[Eala]

SEATTLE - Some high-tech companies in the Seattle area have a big problem on their hands: too much office space. Space they don't need. Space they can't get rid of. For example, Bellevue's Onyx Software spent more than $6 million during the first half of the year, on empty office space. That's enough room for a thousand employees. With office vacancy rates at a 10-year high, companies, like Onyx, have been hard pressed to find tenants to sublease the space.

[Eala]

Surprise, surprise. The liberals keep jacking up taxes and not building infrastructure (as they decided 20 years ago not to do, preferring to fritter the money away on overblown government bureaucracies, so-called art, blatant waste, etc., etc.), and the businesses start going away.

Of course the loss isn't ALL due to our state and local governments' stupidity/cupidity, but there does seem to be a bit of a corporate exodus underway -- including that, em, Chicago company, Boeing. But when I walk around the business parks in eastern Redmond I am shocked at the extremely high vacancy rate. I would not be surprised if it were over 50%.

[Aria]

Second highest taxes in the country. I'm amazed that Democrats still control the state.

[VoiceOfBruck]

Office Space was a great movie...

"Well, Bob, I wouldn't say I've been 'missing' work!"

[glc1173@aol.com]

There's an office space glut everywhere in the U.S., thanks to the minidepression.

Greensboro, North Carolina has tons of empty office space in prime buildings in its main office district - including an entire empty modern bank building about 14 floors high!!

[cmsgop]

Hey Eala, ever see that Brand New Office Building whe the 520 ends on Avondale. It's been Vacant for 2 1/2 years. It's never seen a tenant.

[Eala]

Second highest taxes in the country. I'm amazed that Democrats still control the state.

Geographically, the Republicans probably hold most of it. But it's the liberals who have a very tight and longstanding grip on Sodom on the Sound (Seattle), and thus most of the most populous region of the state.

They have such a tight grip there that a lot of their money now flows eastward to the traditionally (or formerly) moderately conservative Eastside (east of Lake Washington -- Bellevue & Redmond) to elect liberals from our locales. In the recent races in my district they outspent Republicans 2:1, and came near to setting state spending records in the process.

We are beleaguered here. And things aren't getting better.

[Eala]

Hey Eala, ever see that Brand New Office Building whe the 520 ends on Avondale. It's been Vacant for 2 1/2 years. It's never seen a tenant.

Seen it? Two years ago I was waving campaign signs there! (Really on the Mervyn's corner, but...)

And until recently (when a new route opened up) I passed it every Sunday on the way to church. For visibility the building's location is great. For access it's dismal. (Take a look at the driveway location sometime.) Somebody's losing a bit of money on that investment...

[Eala]

Office Space was a great movie...

Don't recall it. (I'm too young for a senior moment...!) Tell me more...?

[cmsgop]

LOL! Also the parking lot it only has like 14 spaces. What were they thinking...? Have you been to the new Fred Meyer. IT'S HUGE!!!!

[Eala]

LOL! Also the parking lot it only has like 14 spaces. What were they thinking...? Have you been to the new Fred Meyer. IT'S HUGE!!!!

Went in there Sunday; horrible. Thought we were in the Christmas rush; parking was miserable, store overcrowded. (Went ny there again today, on a noontime stroll.) It's really messed up traffic in that area.

[Eala]

I have seen this before in Alaska in the mid 80's. Wait till the sh_t really hits the fan and people start to walk away.

I evacuated from CA in the early 80s, to escape much of what we're dealing with here now (but then, unlike Washington, I never liked California much). I'd split from here in a flash if the company would let me telecommute.

[cmsgop]

I was there at 12pm too. The Bear Creek Safeway is hurting, Like a Ghost Town. I must say that the New Larry's in the Redmond Town Center is Fantastic. Although I spend Wayyyyy Too Much $ there and my Wife does not approve. I can't help it !!!

[BADROTOFINGER]

Office Space was a movie written by Mike Judge, creator of Beavis and Butthead. Right now it is probably a cheap rental, well worth the 2-3 bucks. There was a cartoon on SNL sometimes about the office dork who was always getting stepped on (cant remember the name of it) and that guy is in it, live action version. I would provide a link to an Amazon page for it, but I am not HTML savvy. Definately worth a couple of bucks at the local video store tho...JFK

[tyen]

Commercial real estate in many areas is posting negative absorption rates. Places like Washington, D.C. and Bentonville, AK are exceptions. While painful, it is a necessary step to purging the excesses of the fradulently-acquired Clinton Boom. Just pray we are not in a von Mises-style Crack Up Boom. This is still a recession. When we hit 10% or greater unemployment, or lose a decade to economic malaise a la the Japanese, then let's talk depression probabilities. Keep your fingers crossed. Next year is not going to be a fun ride (and this year was pretty nail-biting for my business), but if you have set aside any reserves you'll be fine.

My forecast is about another 3-5 years of this kind of economy: it kinda sorta sputters along, keeps everyone at the edge of their seats, but almost imperceptibly improves overall. Hopefully it will have improved enough by the end of next year that people can acknowledge a trend, however small. There is quite a lot of misallocated capital to wring out of the system. Business-unfriendly states will likely be hit hardest, for the longest, though not from businesses leaving (which doesn't help, all the same). Most small businesses are tied down to their locality. I simply don't expect those states to drastically cut back their budgets until the bond markets force their hands. The likely response for those legislatures is to raise taxes, thus retarding their regional economic recovery, and cutting back budgets too little, too late for the cuts to have a salutory effect.

If you don't have any reserves but had the chance during the boom, remember that lesson when normal economic times come around. I didn't have nearly as much fun during the boom as some of my business acquaintances did, who leased Boxsters, re-financed into larger mortgages, and took luxurious European vacations. But I sure sleep better at night with two years' expenses in the bank, and several years' food in long-term storage. That let's me concentrate on the business now, instead of sweating the monthly payments.

[Hostage]

I'm in Seattle surrounded by liberals. McDermott is the US Rep for this district. He runs uncontested. The people that vote for such politicians look to politicians that won't rock the boat, that won't cut spending, won't go against the established dogma of:

"Talk about the hot issues du jour and do nothing except lay blame.

That's the Democrat way.

The Republicans on the hand are pretty lame. They follow the established dogma with the following adjustment:

"Talk about the hot issues du jour and do nothing except take blame.

[MonroeDNA]

How many jobs were lost because of this?

[cmsgop]

LOL!

[pcgTheDestroyer]

Second highest taxes in the country.

Forgive me for being an ignorant Californian (who is looking at moving to the Olympic Peninsula area), but I thought Washington State had no state income tax. Where are these "highest taxes" being assessed? Are they county taxes or something else?

Inquiring minds and all that...