2009 Office Market Outlook for Entrepreneurs

Pat Pendergast, of Washington Partners, recently took the time to share his 2009 office market outlook with us. In short, Pat expects big changes and substantial opportunities both in Seattle and Bellevue. While real estate is likely to hit bottom in 2009, the economic shocks we have been hearing about will continue to have their effect on the sublease market throughout the year. In Seattle, almost two million square feet of new developments are expected to reach completion during 2009, most of which has yet to be pre-leased at this time. To make matters worse, corporate downsizing at companies like WaMu, Safeco, and Starbucks is expected to contribute an additional two million square feet of space by 2011.


The result in 2009: High vacancy rates fueled by an oversupply of new and existing office space coupled with corporate downsizing efforts of firms located in Seattle. Pat is predicting office vacancy rates near 17% in Seattle (graph depicts trend from 2000-2008, and 2009 forecast):


While smaller in scale, the situation in Bellevue is expected to be similar with vacancy rates approaching 14% (graph depicts trend from 2000-2008, and 2009 forecast):


Depending on whether you see the glass as being half-full or half-empty, this situation may present a unique opportunity.

Either way, Pat has a few recommendations for entrepreneurs:
1. Position your lease for 2010:
- Consider a short term lease
- 2010 may offer a better outlook for future business and the economy

2. Take advantage of the Sublease Market:
- Offers a flexible lease term
- Lowest rates

3. Or for Subleasing Your Space:
- Be pro-active
- Be flexible on term, rate, and rental square footage

Thanks to our sponsors at Washington Partners for sharing their insights with us!

Calling All Northwest Angels: Join AoA for the 2009 Angel Capital Association Regional Meeting!

The national organization of angel investor groups, the Angel Capital Association, will convene its northwest regional meeting in Seattle on February 24th. Accredited investors from the region are invited to join host Alliance of Angels to discuss trends in angel investing and a special workshop featuring tips for lead investors.

The morning session will feature a presentation by Sarah Dickey from the ACA, who will share the latest angel group statistics and trends. Participants will also hear the latest news on regional investment programs, including updates from Bruce MacCormack, chair of Bellingham Angel Group and David Verrill, founder of Boston Hub Angels and chair of the ACA Syndication Committee. The morning will conclude with a panel discussion, “Angel Investing in a Downturn,” in which experienced angels, including Mike Crill, managing partner at Atlas Accelerator, and angel fund manager Basil Peters of the Vancouver and Bellingham angel groups, will offer their perspectives on the impact of current economic climate on startup companies and investors.

The afternoon will be devoted to a lead investor clinic presented by Alliance of Angels’ most active and experienced deal leads, including AoA program chair Dan Rosen and Geoff Entress, managing member of Rolling Bay Ventures. Participants in this interactive, case-based workshop will gain insights into syndicating a consortium of investors, conducting due diligence; negotiating term sheets; and investment stewardship.

Members of ACA enjoy the full day of programs on February 24th and are also invited to attend an exclusive networking reception the evening of February 23rd for $125. Half-day registration for ACA members’ choice of the February 24th morning or afternoon session only is $75. Members of Alliance of Angels are also eligible for a special rate.

Accredited investors who are not members of ACA may attend the full day of programs on February 24th for $175, or choose to attend either the morning or afternoon session for $100.

Don’t miss the chance to connect with fellow angels and stay on top of best practices in early stage investing. Register today by calling Katy Tollefson at 206.389.7259.