SEATTLE -- Like the housing market, 2009 was a tough year to get businesses into commercial real estate.
"I would describe it as tough and challenging," said Robert Arron with Vulcan Real Estate.
Only a third of Vulcan's 2201 Westlake Building was occupied until Amazon.com announced on Thursday it's leasing the rest of the building.
"That brings the office occupancy to 100 percent," Arron told KING.
According to realtors, in 2007 downtown vacancies for office space was at 10 percent.
But after the financial meltdown, that vacancy rate doubled to 21 percent.
"What happened was a lot of supply was coming back through due to sub-leased space and a lot of tenants contracting because they were so afraid of economic conditions," said Dan Ivanoff with Schnitzer West.
Ivanoff watched the market freeze last year and impact new buildings like the high-rises his company built and owns in South Lake Union.
"It was a pretty scary time," said Ivanoff.
But Schnitzer West says this year it has seen significant activity, rented space and locking down deals. What's helping is offering unique amenities, like on-site fitness canters, training conference rooms and cafes in the building.
"What we're finding is that non-economic points are what's winning or losing that deal. Every tenant has a unique need, the building owners that are addressing those unique needs from needs to grow or shrink, those are the deals happening now," said Brandon Weber with CB Richard Ellis, Inc. a corporate realtor.
While some spaces remain vacant, industry experts say 2010 is looking up for commercial real estate.
"We feel good, but by no means are we out of this. Although trends are looking much better," said Arron.
Amazon.com plans to move into 2201 Westlake sometime in the summer.
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