An ambitious project in Bellevue, Washington, initially conceived as a sprawling office complex, has been reimagined as a mixed-use development with a greater emphasis on residential space.
The transformation comes as part of Stanford Hotels Group’s updated proposal, aptly named Cloudvue 2.0 (formerly Cloudvue), and plans for it were recently outlined in documents submitted to the city, the Puget Sound Business Journal reported.
The original vision for Cloudvue encompassed three skyscrapers, including two office towers spanning 1.7 million square feet. The third would’ve stood 600 feet tall and combined 538 residences with 117 hotel rooms.
However, the latest update reflects a fundamental change in strategy, acknowledging evolving trends in work and lifestyle preferences.
While specifics about the number and nature of the residences are yet to be disclosed, the development team appears poised to answer the growing demand for residential.
This strategic shift aligns with broader regional developments; the Broderick Group forecasts an increase of 4.7 million square feet in Eastside office space by 2025, excluding Cloudvue.
Cloudvue’s proposed performing arts center, known as the Playhouse, will be scrapped to make way for a three-level grocery store, plus a fitness center and office space.
The pivot isn’t surprising. Like many cities, Seattle has seen a significant increase in office vacancies.
Read more
Commercial
National
Atlassian signs five year lease in Seattle
Commercial
National
Portland grapples with cratering office market
Commercial
San Francisco
Bargain-hunter tenants push SF office rents as market recalibrates
One case in evidence of that is 86-year-old developer Martin Selig — known for his resilience in previous downturns — who is facing unprecedented challenges in the city’s current office market slump caused by the pandemic, the Seattle Times reported.
Despite his reputation as a deal-maker, Selig’s office portfolio has an uncomfortable 19 percent vacancy rate, significantly higher than the single-digit rates seen in 2019.
Some of Selig’s newer properties, such as the Federal Reserve building and 400 Westlake tower, are struggling to find tenants.
Selig remains optimistic, claiming that many downtown office workers are already returning three days a week, and he expects a full return to five days a week by next year. However, industry insiders question whether this rebound will happen quickly enough to prevent potential financial difficulties.
“My guess is he’s hustling,” Stephen Buschbom, research director at commercial real estate data firm Trepp, told the outlet. “We’ll see some movement here, one way or another, over the next six months.”
— Ted Glanzer