Lululemon Doubles Office Space in Downtown Seattle

Athletic apparel giant Lululemon is doubling its office space in Seattle amid a persistent high office vacancy rate in the city.

The Vancouver, Canada-based clothing brand will expand into 46,000 square feet across two floors at the 2nd + Seneca building in downtown Seattle, the Puget Sound Business Journal reported. Its previous lease in the Northwood Investors building spanned 23,000 square feet on one floor.

Lululemon is slated to make tenant improvements on the building’s ninth and 10th floors, according to a permit filed earlier this month. The work, overseen by general contractor Turner Construction, is estimated to cost $1.9 million.

Lululemon and Uber remain the anchor tenants of the 22-story building at 1191 2nd Avenue, which opened in 1991.

The athleticwear company notched more than $10 billion in revenue for the first time last year thanks in part to its popular branded merchandise including technical shirts, shorts and leggings. At the same time, the company downsized its Seattle-area footprint, closing its distribution center in Sumner and its store at the Pacific Place mall downtown.

The company maintains 750 stores and 39,000 employees around the world.

Seattle’s office vacancy rate remains stubbornly high, climbing to 26.9 percent in the first quarter. It’s even worse in the downtown Seattle central business district where office vacancy reached 30 percent in the beginning of this year, according to Axios.

Northwood Investors acquired the Class A office tower in 2022 for $382 million. The firm plans to revamp the building’s amenity spaces, “further cementing its status as the premier downtown address,” the 2nd + Seneca website says.

More companies are opting for high-end office buildings with amenities for tenants. San Francisco Mayor Daniel Lurie recently proposed a plan to make it easier for downtown building owners to convert vacant ground-floor retail space and empty upper-floor offices into amenity spaces for tenants including lounge areas, presentation rooms and gyms.

— Chris Malone Méndez