land and buildings have value but only land increases in value

Nothing to see here, just an international investment concern making $120 million dollars simply by having the $370 million to invest. The working people of Seattle did the rest.

Kilroy Realty bought the building from a Deutsche Bank-affiliated real estate fund, according to documents filed Monday with King County. The building was built in 2009 and last sold in 2016 for $370 million.

Maybe some halo effect from Amazon but more from Seattle itself…

Despite an overall decline in office leasing in the United States, technology companies gobbled up more space in the Seattle area than they had the previous year.
[…]
Among the 100 largest technology leases, 14 were in the Seattle area, totaling 3.4 million square feet, about 85 percent more space than in Manhattan, the No. 2 market on the list.

This is just silly…

Downtown Seattle is “closer to capacity build-out,” said Mr. Yasukochi, but the so-called Eastside has room for companies to expand. Some businesses are creating mini-campuses, and others are flocking to new developments like Bellevue’s Spring District.

Downtown parking lots, a acre+ hole in the ground across from City Hall, and all manner of other underused land, but go off, I guess.

“It’s the talent pool that drives the real estate market,” Mr. Yasukochi said. It’s easier to hire specialists in cloud computing, machine learning or virtual reality when so many live in the area.

Large companies also attract start-ups. “If you want to be part of the tech industry, you’ll want to be where the action is,” Mr. Paolone said.

And the speculator/rentier will be there with their hand out, doing nothing, making money while working people sleep.

Leave a Reply

Your email address will not be published.