The Herald Business Journal


YOUR COUNTY.	YOUR BUSINESS JOURNAL.

Published July 2001

Cosmos, other projects signal optimism about area

By John Wolcott
Herald Business Journal Editor

After years of being told King County businesses want to move to south Snohomish County to enjoy lower rents, shorter commutes and high-tech buildings wired for corporate efficiency, the first wave of new “smart” buildings is coming on line.

And the synergy of new office towers on the skyline, a Lynnwood feasibility study for developing an enhanced business district for the city, a new economic development department in City Hall, heightened attention from the Snohomish County Economic Development Council and regular visits from Seattle and Bellevue developers is creating a powerful surge of optimism about the area’s economic future.

Ron Gregory, CEO of Olympic Capital Group of Lynnwood, the developer of the newly opened Lynnwood Corporate Center II, the city’s first high-technology wired building, is excited about the competition from other office developers.

“We welcome Cosmos and all those other projects. Each new office building built or planned in south Snohomish County is a validation of what we’re doing and saying about attracting King County businesses to this area,” said Gregory, who has more buildings on his drawing board in preparation for what he believes will become a hot office market at his doorstep.

Rental rates of $20.50 per square foot, triple-net, compare favorably to King County rates of $25 to $30 per square foot in downtown and Eastside buildings, rates that are on their way up in many office buildings, according to leasing agents. Todd Battison of Trammell Crow is handling leasing for the Lynnwood Corporate Center II.

The next major project due to open will be the Cosmos Lynnwood Center, a 203,532-square-foot, six-story Class A office center (www.cosmoslynnwoodcenter.com) opening on budget and on time in early September at 19020 33rd Ave. W.

Mark Jackson, Vice President of Leasing and Property Management for Cosmos Development & Administration Corp. of Bellevue, said during a media tour of the structure last month that the “spec” building already has two potential tenants negotiating for 10,000 and 30,000 square feet of space, respectively.

“Our marketing will be helped considerably by the fact the we just signed an agreement with Verizon to wire this office building with fiber-optic cabling as one of its ‘smart’ centers for state-of-the-art business telecommunications,” Jackson said.

Mike Schreck of Colliers International is involved in leasing for the center.

Pleased with “a lot of cooperation” from the city of Lynnwood during the project’s permit and construction phases, Jackson said he sees the Cosmos venture as “a positive addition to the office community in Lynnwood.”

The concrete building will feature a brick exterior with emerald green glass; rental rates of $20.50 per square foot, triple-net; covered parking for 617 vehicles and surface space for 56 more; proximity to I-5, I-405 and Highway 99; an on-site deli shop; and state-of-the-art HVAC systems.

Only a couple of blocks from the Fisher Business Center, a six-story office building built in the mid-1980s, the Cosmos building is within the 77-acre area being studied for development as the Lynnwood Central Business District and only a few blocks from the Alderwood Mall.

“Snohomish County’s pro-business outlook is the big attraction for us as developers,” Jackson said. “The city, county and EDC have a unique team approach for cooperative problem solving. That’s an ideal fit with the Cosmos philosophy.”

The Bellevue developer opened its first office building in the county a year ago, the Cosmos Mountlake Terrace Center at I-5 and 220th Street, built as a speculative venture, betting on the company’s vision of future office development north of King County. Today the building is essentially full, with 60 percent of the tenants coming from Seattle, including American Express and Sony; 20 percent coming from east King County; and the other 20 percent coming from elsewhere in Snohomish County.

“Cosmos shares the Snohomish County vision,” said Deborah Knutson, President of the Snohomish County EDC. “They are an integral component to the evolution of the county, and the new Cosmos Lynnwood Center is one of the initial manifestations of that mutual vision.”

Elsewhere in south Snohomish County:

Construction Associates Inc. of Lynnwood has completed Taylor’s Landing at 6505 216th St. SW in Mountlake Terrace, a three-building complex offering 24,000 square feet of office space and 60,000 square feet of office and warehouse space, already leased to the Bekins moving company. The facility — featuring a stone entry with a waterscape and an enhanced 5-acre wetland — is also the new home of Construction Associates, noted for the renovation of the Westwood Shopping Center, the Palisade restaurant in Magnolia and Underwood Johnson Corporate Park in Redmond.
One of Construction Associates’ most recently completed projects is the four-building, 100,000-square-foot North Campus Business Center development at 12121 Harbor Reach Drive in Mukilteo, one block south of the Mukilteo Speedway. The development includes a two-story, 35,000-square-foot office building and two high-tech light-industrial buildings designed to provide flexibility for a general-purpose office tenant and all types of light manufacturing and assembly needs. Derek Heed and Greg Riva of Colliers International are leasing agents for the properties, according to Bob McDonald, HP Development, the developer of the center.
Farther east along the Mukilteo Speedway and two blocks south, at 13024 Beverly Park Road, is the new Corbett Business Center developed by S&S Development. The first of what will eventually be a three-building complex is a two-story, 20,000-square-foot building. The second floor has been leased to Underground Specialties Inc. The general contractor is the M.A. Mortenson Co., and leasing is being handled by Mike Kerwin of Windermere Commercial in Everett. Partner Mark Swanson, one of three who own the building, said the two future buildings are expected to be similar in design, with David Evans & Associates as the architectural and engineering firm.
In Lynnwood, RG LLC, the partnership that built the Canyon Creek Center offices in Mill Creek, is anticipating the completion of the Canyon Creek Professional Center in Mill Creek this month before moving on to start the six-story, 91,000-square-foot Alderwood Parkway Professional Center, a $17 million project. Permits are expected to be granted by the city of Lynnwood by mid-August, allowing a September project launch.
The largest office park development planned for south county is Opus Northwest’s 90-acre Northpointe Corporate Center on 164th Street SW near I-5 in north Lynnwood. Officials said in February construction could start as early as spring or summer. Three phases will be built, totaling more than 700,000 square feet of office and technology space, offering space ranging from 20,000 to 50,000 square feet. The project will be certified as a Verizon SmartPark. Gary Bullington of Cushman & Wakefield is involved in leasing space at the center.

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