Coffee. E-Commerce. Technology. Transportation. Brick and mortar retailers. The Seattle area is home to a plethora of Fortune 500 companies that are not only household names but have revolutionized their industries and upended their respective consumer marketplaces, while also helping to reshape the Seattle commercial real estate landscape.
First to call the Seattle area home were Nordstrom, Weyerhaeuser and PACCAR. The latter two were instrumental in one of the biggest industries of the early twentieth century–logging. Before becoming the luxury retailer we know today, Nordstrom started as a shoe company, outfitting the workers of the day.
Next came Alaska Airlines, Starbucks, Costco and Expeditors. Alaska Airlines took flight as air travel became a mainstay form of transportation. The airline grew from connecting west coast cities to one another to connecting these cities to the world. Then came Starbucks who made the latte accessible to the masses and Costco who brought bulk purchasing to consumers. All while Expeditors provides logistical services to companies near and far.
The advent of personal computers and the internet gave the Seattle area Microsoft, Expedia and Amazon while changing the way we use computers, travel and shop. Combined, these three companies employ over 115,000 workers in the Seattle area. Amazon alone has 45,000 employees in Seattle and just confirmed plans to expand into Bellevue, securing over 1 million square feet of office space.
Office space for these growing Fortune 500s has increased demand for Class- A office space in and around Seattle, while also increasing the demand for industrial warehouse space south of the city. The vacancy rate around the Seattle area continues to fall, according to Cushman & Wakefield, Q4 2018 saw a vacancy rate of just 5.4%. Meanwhile, in the Kent Valley, home to many large warehouses used by both e-commerce and brick and mortar retailers, the average leasing price per square foot continues to rise year-over-year.
Washington state provides significant incentives to keep these companies in the state. First, the state is one of only seven not to have a state income tax. Due in large part to many of these companies, the Seattle area also provides a wide pool of world-class talent. It also boasts the distinction of having the most educated workforce in the country. The Seattle area also offers a plethora of cultural and outdoor activities that make workers want to stay and play while not in the office.
These could all be reasons why Wallethub recently ranked Washington as the second-best state to find a job. The state also took top billing for having the best economic environment. All of these factors have helped mold the Seattle area into a place Fortune 500 companies want to call home.
Owen Rice is Executive Vice President at Hughes Marino, an award-winning commercial real estate company with offices across the nation. Contact Owen at 1-844-662-6635 or [email protected] to learn more.
