A Case Study of Millennium Tower

Strategic Rebranding and Significant Leasing and Rent Growth Leads to a Successful Disposition for Ownership

Challenge

Millennium Tower was delivered as fully leased new construction in early 2001, achieving top rents in Seattle prior to the dot-com crash later that year. From acquisition through initial lease rollover in 2010, the property enjoyed a solid tenant roster, full occupancy and strong cash flows. However, its south CBD submarket was suffering significant vacancy due to competition from the rapid expansion of Amazon in the north CBD and, to the south, the brick and beam historic assets of Pioneer Square attracting start-up technology firms. By 2013, the property’s low- and mid-rise floors were half empty.

  • LocationSeattle, WA
  • TypeOffice
  • Size199,407 SF (201,000 SF at Disposition)
  • Investment strategyCore
  • Acquisition dateJune 2003
Millennium Tower in Seattle
© Mark Griffith
Millennium Tower in Seattle
© Mark Griffith
Millennium Tower in Seattle
© Mark Griffith

Solution

We developed a leasing and marketing strategy to attract corporate technology users seeking the modern floor plate, security, parking, and robust building systems. We hired a new brokerage team, developed new marketing materials, and prepared building vacancies with new improvements designed for our target market.

Results

Between 2014 and 2016, we leased up the vacancies to expanding tech and tech divisions of corporate firms while achieving rapid growth in rental rates. Millennium Tower sold in 2017, leveraging pent-up demand for a high-quality boutique multitenant Seattle office building, achieving a favorable result for its owner.