Boeing has signed leases for 300,000 square feet of office space in Bothell. The five or six buildings in the Canyon Park and Monte Villa areas will be used “for office functions that are getting displaced,” said Matt Hagen, senior vice president and partner with Kidder Matthews who helped broker the deal.
Boeing is tearing down several office buildings in Everett to make space for a factory that will make wings for the 777X, Hagen said. He added that Boeing is pursuing more office space along I-90.
Boeing didn’t return requests for comment.
“It will bring more people to the business parks, filling up some space that has been vacant for quite some time,” said Dick Paylor, a commercial realtor in Bothell who wasn’t involved in the deal. He added, “That cuts the vacancy in half...which is very good.”
Bothell’s business parks contain a total of about 5,000,000 square feet of office space, Paylor explained. Before the Boeing transaction, about 600,000 square feet were vacant. The vacancy rate dropped from about 12 percent to 6 percent.
Bob Stowe, Bothell city manager, said Boeing will have a “positive effect” by filling up half the city’s vacant office space.
“It’s a positive sign that our economy is recovering and that Boeing has decided to invest in Bothell,” Stowe said.
However, Paylor said, Boeing’s leases are only for three years.
“The market expectation is that Boeing, in those years, will construct a new building at Paine Field and move those employees back there,” he said.
Both Stowe and Paylor said they’re not concerned about increased traffic from the estimated 3,000 new employees in Bothell. Stowe explained those buildings have been occupied before, and there was traffic mitigation when the buildings were constructed.