What We Got Right, and What We Got Wrong

What we got right:

• Rents will go up another 10% - CORRECT – Rents increased 10.6%

• Affordable sub-markets are no longer – CORRECT – Pioneer Square’s rents increased 24% and Queen Anne’s rents increased 14%

• Brick & mortar retail will struggle – CORRECT – US retail closures in 2019 almost doubled the previous year.

• The market will not crash – CORRECT – We anticipate 2020 will bring continued growth as well.

• WeWork is a bubble – CORRECT – 2020 will provide insights into the exact impacts.

What we got wrong:

• Vacancy rate will drop below 4% - WRONG – fell to 5.8%

• Office sales will slow – WRONG – The new excise tax pushed sales through in 2019. We do, however, predict sales will slow dramatically in 2020