Skanska invests $ 476 million in Bellevue office
Global development and construction company Skanska will inaugurate a high-rise office project in downtown Bellevue next month.
It is the first speculative office building developed in the city in the past six years, according to a press release.
Skanska is investing approximately $ 476 million to develop and build The Eight, its latest office development project in Bellevue, the statement said. The Class A + office project is expected to be completed by the end of 2023.
Le Huit, at Northeast 8th Street and 108th Avenue Northeast, will have 25 floors and cover 540,000 square feet. It will feature a private rooftop terrace, seven alternating interior / exterior exterior balconies, 12,000 square feet of retail space on the ground floor, and four levels of basement parking that will include valet and parking services. charging stations. The project will aim for LEED Platinum and Wired Platinum certifications.
As a speculative project, it has not yet signed a tenant lease.
“As the project progresses we will be in contact with a number of potential tenants,” said Murphy McCullough, executive vice president of the Seattle market of Skanska USA Commercial Development, in an email when he was asked if Amazon, which is growing in downtown Bellevue, could be a target. “The Eight has been designed with the flexibility to serve as a head office for a single tenant or for multiple tenants.”
The Eight is Skanska’s sixth development project in the Seattle area and the second in Bellevue since development operations began in the area in 2011. Skanska purchased the land for The Eight in July 2018 and received an administrative review. of design and approval in 2020.
Asked about Skanska’s confidence in filling the space and the bet he’s making on Bellevue, McCullough said: “The region’s urban core business development industry has a four to six year horizon in the making. planning and implementation. Every downtown Bellevue office project currently under construction is pre-let and there are very few other proposed projects to deliver on our schedule. We are seeing a strong and steady recovery with relative consistency in the Puget Sound area as we enter this new phase of full reopening, particularly in downtown Bellevue.
Skanska has seen an increase in attracting talent to both sides of Lake Washington in recent years. The Eight is located in one of the best offices in Bellevue as it is adjacent to public transportation and amenities, McCullough said. She added that the region’s excellent schools, strong talent pool and the expansion of several tech companies have fueled even greater demand.
“The long-term economic effects of the pandemic are undetermined, but the market is historically strong in Bellevue,” he said. “If our pipeline and planned activities are any indicator, the outlook for commercial real estate in this region is exceptional.”
Even after the pandemic has moved more people to remote work, Skanska believes the Seattle and Bellevue offices are great investments, he said.
“The recent sale of our 2 + U office tower in downtown Seattle is an example that investors feel the same way,” said McCullough.
Asked about the plans for the Bellevue retail space, he wrote, “The Eight follows Skanska’s tradition of creating an exciting and dynamic ground plan for our tenants and our community. As businesses contemplate their new workplace needs in a post-pandemic world, many are looking to developers to create attractive and engaging office spaces for their employees, customers, and the community at large. Businesses are looking for a space that gives people a reason to leave their homes and return to their downtown areas. For Skanska, the answer is to engage our local communities in developing a desired destination that is worth returning to. A vibrant floor plan with a mix of retail, foodservice, and art is the gateway to the tenant and community experience. Le Huit will be an incredible building for what is possible and will provide cutting-edge technology, sustainability, community amenity space and overall value to the work-life balance of the Bellevue community.
Skanska AB is headquartered in Stockholm and US headquarters in New York. Its global revenue was around $ 17.2 billion in 2020.