OFFERING MEMORANDUM 15945 NE 85th St, Redmond, WA

Sammamish Valley Dental Building

30,000 SF

Jeff Chaney Senior Vice President [email protected]

Alex Wheatley Vice President [email protected]

425.454.7040 | www.kiddermathews.com Location Aerial Redmond Development

Table of Contents

1. Executive Summary

2. Property Summary

• Property Summary • Property Highlights • Demographics • Location Aerial

3. Market Overview

• Redmond Overview • King County Overview • Puget Sound Overview Disclaimer

The information contained in the following Marketing Brochure is thereon, or the financial condition or business prospects of any tenant, or proprietary and strictly confidential. It is intended to be reviewed only any tenant’s plans or intentions to continue its occupancy of the subject by the party receiving it from Kidder Mathews and should not be made property. The information contained in this Marketing Brochure has available to any other person or entity without the written consent of been obtained from sources we believe to be reliable; however, Kidder Kidder Mathews. Mathews has not verified, and will not verify, any of the information contained herein, nor has Kidder Mathews conducted any investigation This Marketing Brochure has been prepared to provide summary, regarding these matters and makes no warranty or representation unverified information to prospective purchasers, and to establish only whatsoever regarding the accuracy or completeness of the information a preliminary level of interest in the subject property. The information provided. All potential buyers must take appropriate measures to verify all contained herein is not a substitute for a thorough due diligence of the information set forth herein. investigation. Kidder Mathews has not made any investigation, and makes no warranty or representation, with respect to the income This information has been secured from sources we believe to be reliable. or expenses for the subject property, the future projected financial We make no representations or warranties, expressed or implied, as to performance of the property, the size and square footage of the the accuracy of the information. References to square footage or age are property and improvements, the presence or absence of contaminating approximate. Recipient of this report must verify the information and bears substances, PCB’s or asbestos, the compliance with State and Federal all risk for any inaccuracies. regulations, the physical condition of the improvements Property Summary

Executive Summary With an annual bike race on city streets and the from 45,256 in 2000 census and 2015 population state’s only velodrome, Redmond is also known as estimate is 57,530 which is a 5.88% increase over the “Bicycle Capital of the Northwest”. 2010. Kidder Mathews, is pleased to present for sale a development oppotunity of multifamily units located in downtown Redmond. This site is approximately The Market Local Economy 3.5 miles east of the Redmond Microsoft Campus, 8 miles from Bellevue and 16 miles east of downtown King County is the most populous county in Redmond is commonly recognized as the home of Seattle. The site is located downtown on NE 85th . The hub of the King County market both Microsoft and Nintendo of America. The largest Street with convenient access to WA-520 less than includes Seattle, Bellevue, Redmond, Kirkland and employer in the city is Microsoft, which moved its one mile south. In a 1/2 mile radius of the site are Renton. Redmond is the 6th largest city in King headquarters to Redmond in 1986. Microsoft has over established retail stores such as Trader Joes, Group County with an estimated two-thirds of the county’s 40,000 full-time employees, 45,000 contractors and Health, QFC, and Bank of America. Redmond Town population living in the suburbs. Redmond is a high more than 8 million square feet of office space in the Center is approximately 1 mile south. Anchored tech enclave in King County, Wa, located 16 miles Seattle area’s Eastside region, primarily in Redmond. by Macy’s and REI , Redmond Town Center is the east of Seattle, within the Seattle metropolitan area. Nintendo’s North American subsidiary is based in premier outdoor shopping center on the Eastside. The population was 54,144 at the 2010 census, up Redmond, Washington. Originally the headquarters handled sales, marketing, and advertising. However the office in Redwood City, California now directs those functions. The company maintains distribution centers in Atlanta (Nintendo Atlanta) and North Bend, Washington (Nintendo North Bend). The 380,000 SF (35,000 m2) Nintendo North Bend facility processes more than 20,000 orders a day to Nintendo customers, which include retail stores that sell Nintendo products.

Other companies with headquarters in Redmond include Genie Industries, Physio-Control, Univar, Visible.net, Wild Tangent, Solstice and Data I/O. An Online Trading Academy office and center is also located in Redmond. Property Summary

PROPERTY INFORMATION Property Sammamish Valley Dental Center Address 15945 NE 85th St, Redmond WA Proposed Use Mixed Use Apartments & Retail / Senior Housing / Condo Site Size (per survey) 0.69 acres (30,000 SF) Parcel Number 719890-0190 Topography Flat Jurisdiction City of Redmond, King County Zoning SMT (Sammamish Trail) ; Multifamily Urban Residential 8% to 10% are required to be developed as affordable housing Affordable Housing Component due SMT zoning code Density shall not be regulated by a maximum number of dwelling units per acre, but by the application of bulk, height, parking, and all other development standards. For example, developments may achieve as many dwellings as possible when the development provides all of the necessary parking, open space, etc., for the number of units proposed, and the Density building(s) meet all of the prescribed standards. All developments with proposed densities exceeding 66 dwelling units per acre, inclusive of density bonuses are allowed per RZC 21.10.130.B.4, Residential Density Bonus, shall be required to have at least one level of semi-subterranean or subterranean parking, structured parking hidden behind ground floor commercial space, or other pedestrian amenities along the street front. Pedestrian Zone | Set Backs Front Yard 0’ ; Side Walk 10’ & 4’ Planting Strip Maximum Height 5 stories / 6 stories with TDR Parking Requirements 1.2 spaces per Studio 1.5 spaces per 1 Bedroom 1.8 spaces per 2 Bedroom 2.0 spaces per 3 Bedroom Bicycle Parking 1.0 space per unit Property Highlights

Site Location

Situated on 30,000 square feet, the site is located across from Redmond City Hall on NE 85th Street approximately 1 block from Redmond Way a primary east / west transportation corridor through Redmond. This corridor provides easy access to 520 and 405 which connects to downtown Redmond, Bellevue and Seattle. Access to most retail services, including major grocery and drug, personal services, automotive and more, are steps away on Redmond Way. Approximately 3/4 mile south, via Redmond Way, is the Eastside’s premier outdoor shopping center, Redmond Town Center, which includes Macy’s, REI, Z-Gallerie, Ipic Theatres and much more.

The site is approximately 3.5 miles east of the Microsoft Campus, 8 miles east of Bellevue, and 16

miles east of Seattle. The primary retail area lies along Turn Key Cash Flow Opportunity Redmond Way adjacent to Route 520. Less than 2 blocks from the site is the Sammamish River Trail The Redmond site offers a developer the opportunity which connects the University of Washington Seattle to develop apartments, senior housing or for sale to Marymoor Park, King County’s most popular park. condos in one of the most stable rental markets in the More than 3 million people visit Marymoor annually Seattle area. Close proximity to Microsoft and direct to explore the 640 acres of recreational activities. access to Seattle makes Redmond a convenient city has announced a possible Light Rail to work and live in. Recent job growth is positive East Link station to be located at the Northeast end and has increased by 2.64 percent. As of 2015, of Marymoor Park approximately 2 miles east of the Redmond’s population has seen growth of 17.37 site at the intersection of Hwy 202 and SR-520. This percent since 2000 and home appreciation in the last station anticipates 3,500 daily riders in the Redmond year has been 12.20 percent. area. Demographics

DEMOGRAPHICS 1-MILE 3-MILE 5-MILE 2015 Population 16,656 83,584 213,993 2015 Housing Units 8,306 36,912 92,205 Owner Occupied 34.7% 50.5% 55.0% Renter Occupied 58.1% 43.6% 39.4% Vacant Housing Units 7.2% 5.9% 5.5%

Median Home Value 5.6% 6.0% 5.8% Median Age 32.2 35.5 37.0 Median Household Income $87,534 $91,438 $90,358 Median Home Value $513,412 $598,146 $605,030 Median Age 34.0 35.6 37.4

TAPESTRY SEGMENTS 1-MILE 3-MILE 5-MILE Enterprising Professionals 46.1% 36.6% 25.4% Metro Renters 39.7% 22.0% 11.0% Savvy Suburbanites 8.9% 11.8% 9.6% Urban Chic 5.3% 9.6% 10.7% Boomburbs 5.0% 4.6% In Style 3.8% 2.3% Professional Pride 3.1% 5.1% Bright Young Professionals 2.1% 3.1% Emerald City 2.0% 3.0% Golden Years 2.0% 1.4% Top Tier 1.9% 9.0% Demographics

Tapestry Segments

ENTERPRISING PROFESSIONALS METRO RENTERS SAVVY SUBURBANITES Young, educated, single, married, working Highly mobile and educated market living alone or Residents are well educated, well read and well professionals with a median age of 34.8 years with a roommate, resulting in the smallest average capitalized working in STEM (science, technology, engineering household size of 1.66 and mathematics) occupations Married couples with no children or older children; The median age is 31.8 years with a median income average household size is 2.83 30% are singles living alone, 20% with a roommate of $52,000 and spend a large portion of wages on and 50% are married couples rent, clothes and the latest technology 48.1% are college graduates and 76.1% with some college education Annual Household growth is 1.95% per year Neighborhoods feature 20+ unit apartment buildings and transportation is usually via taxis, walking and Low unemployment rate at 5.8%, higher labor force The diversity of the population is mostly Caucasian biking to and from work participation rate at 68.5% with proportionately more with 12.4% Asian 2-worker households at 65.4% Socioeconomic traits include; well educated, The median household income is $77,000 which is interested in fine arts, strive to be sophisticated, well Median household income approximately $104,000 one and a half times that of the US informed of new technology, work long hours, prefer with a median net worth if $502,000 environmentally safe products and socializing and 90% earn income from wages/salaries and 39% social status is very important. These residents are financially active and use a receive income investments number of resources for informed investing and are Enjoy wine at bars and restaurants, shop at Trader not afraid of debt Over half of the residents hold a bachelors degree or Joes and Whole Food and are partial to organic foods higher; more than 3 in 4 have attended college Homeownership is at 91% and 85% own two or more Own a Mac computer and use it for reading/writing vehicles The labor force participation is 73.4%. Residents blogs, watching TV/movies and visit favorite websites move frequently to find growth opportunities and of Facebook, Twitter, Linked-In and You Tube Devote most of their free time to home improvement, better jobs family time and travel Participate in leisure activities including yoga, pilates, They are young, mobile and rely on cell phones, email and downhill skiing They have the latest technology, cars and actively and technology to stay in touch invest in a diverse portfolio of investments Location Aerial Redmond Overview

Redmond Overview

ECONOMY Downtown Redmond is located approximately 1/2 mile from the site. Companies in the high-tech industry are based in Redmond. By far, the largest employer in the city is Microsoft Corporation, which moved its headquarters to Redmond in 1986. Microsoft has over 40,000 blue badge full-time employees and 45,000 orange badge contractors. Microsoft occupies more than 8 million square feet of office space in the Seattle area’s Eastside region, primarily in Redmond, with additional offices in Bellevue and Issaquah.

Other companies with headquarters in Redmond include Nintendo of America, Genie Industries, Physio- Control, Univar, Visible.net, Wild Tangent, Solstice and Data I/O. An Online Trading Academy office and center is also located in Redmond. These top ten employers have roughly 8,500 employees who work in Redmond. TRANSPORTATION replacement. Tolling started December 2011. Freeway expansion to 8 lanes (2 general-purpose/1 HOV/1 Redmond is linked via 520 to downtown Seattle, auxiliary lane per side) between West Lake roughly 16 miles west. Due to massive residential, Sammamish Parkway and SR-202, along with commercial, and industrial growth in the Eastside widening existing ramps between SR-202 and over the past 15 years, several projects have been Avondale Road to 2 lanes has been completed. proposed to improve the entire stretch of SR 520. Eastbound collector-distributor lanes between Replacement of the Evergreen Point Floating Bridge Interstate 405 and 124th Avenue NE as part of I-405 and freeway expansion to 6 lanes (2 general-purpose/1 braided-ramp improvements between NE 8th Street HOV per side) between Interstate 5 and Interstate and SR-520 in Bellevue are under construction. 405 is currently under construction. In 2009, the House granted the WSDOT authority to impose a toll on the existing bridge to generate funding for its Redmond Overview

LIGHT RAIL EXPANSION The light rail east link expansion plans to create a station located approximately 2.5 miles from the development site at the intersection of Hwy 202 and SR-520, scheduled for 2020. Providing access to high quality, frequent transit service that operates 20 hours per day. Approximately 3,500 daily boardings would occur in this area. The east link to Redmond will support the dense, transit-oriented land use redevelopment plans of Redmond and increased access opportunities at the SE Redmond parking lot and Redmond Town Center.

Segment E will serve Redmond with trains running from Overlake Transit Center along SR-520 into downtown Redmond. Segment E is the end of the line for the East Link project. There is only one option along SR-520; however, the 2008 East Link Draft Environmental Impact Statement (DEIS) evaluates three route alternatives through downtown Redmond. The preferred alternative, E2, crosses under the SR-520 and SR-202 interchange and enters a portion of the abandoned BNSF railroad track. The alignment crosses under SR-520 and over Bear Creek, then becomes at- grade to cross 170th Avenue NE. Trains will continue west along the BNSF to the end of the line near Redmond Town Center, just northwest of Leary Way. Stations would be located at: Segment E could include two stations. SE REDMOND STATION Located at the northeast end of Marymoor Park Located near Redmond Town Center. This station on the south side of the SR-520 and SR-202 serves only the preferred alternative (E2). interchange. Includes a five-story parking structure with 1,400 parking spaces. King County Eastside Overview

King County Eastside Overview 45,000 workers and nearly 7,100 residents housed in • Kemper Freeman planning $1.2 billion downtown. commercial expansion BELLEVUE Bellevue has undergone tremendous change and • Eddie Bauer moved into 190K SF of office space growth. CNN Money ranked Bellevue as the #1 place • 2nd largest city in Washington at Lincoln Square in 2008 to live and launch your business, primarily because • Bellevue employs over 140,000 • Yahoo! occupies 54,000 SF of office space at of the city’s talented workforce and rapidly growing downtown area. Its leasable office space has grown • Microsoft moved into 2 million SF of office One Twelfth @ Twelfth nearly 50% since 2000. The City has become a space in 2009 • Expedia moved into 355,000 SF of office space major player in the global marketplace with many • Over 7,500 Microsoft employees in Bellevue at Tower 333 in 2008 companies having chosen Bellevue for their corporate • Nearly 3,000 Boeing employees in Bellevue • The Bellevue Collection and The Shops at or regional headquarters. Bravern are within minutes • 3,200 T-Mobile employees is home to such companies as • Group Health completed a $110 million • 10 companies employ over 1,000 people in Microsoft, Expedia, Yahoo!, Eddie Bauer, The Disney outpatient expansion at Overlake Hospital’s Bellevue Company, PACCAR and Infospace. With all the campus improvements in the area, Bellevue and the Eastside • Rapid Ride bus stop with direct service on NE • NE 10th St bridge completed extending over have truly become a 50-yard line location. 8th St to Microsoft World HQ I-405 to Overlake Hospital campus • Microsoft World Headquarters 5 minutes west • Approximately 3,000 medical jobs within THE MICROSOFT EFFECT Bellevue’s medical district Microsoft has spawned, through direct investment or • Bellevue School District in top five percent of development or from former Microsoft employees, schools nationwide over 250 companies in the Puget Sound Region with companies such as Expedia, Vulcan, Real Networks CITY OF BELLEVUE and Oynx Software. Additionally, the company has an estimated 3.4 implied employment multiplier which Redmond is located east of Bellevue, which is the means Microsoft produces over 137,000 indirect cultural, social and financial center of The Eastside. jobs in the region. Microsoft has created over 12,000 This rapidly growing and affluent neighborhood millionaires that live in the greater Seattle area. has nearly five million square feet of retail and Historically, the software giant hires approximately entertainment and more than nine million square feet 3,000 employees each year. of office space. Bellevue is the second largest city in the state of Washington, and there are more than King County Eastside Overview

BOEING Boeing reclaimed the number one spot in aerospace 2011, Google expanded its Fremont office space in 2012, crushing its rival Airbus in net orders. In 2012, to 75,000 square feet. In 2009, Google opened its Boeing continues to produce the 737 out of their Boeing had 1,203 net orders compared to Airbus’ Kirkland campus, which consists of a three-building, Renton Factory, which is still the best-selling 833. In addition, Boeing delivered 601 airplanes, LEED certified complex consists of 280,000 square commercial aircraft in the world. Boeing was also which is a new record for the 97 year old company. feet of space. Google plans to expand their Kirkland awarded the Navy’s Multi-mission Maritime Aircraft Of those deliveries, 435 were 737 airplanes. Boeing Campus to nearly double there workforce to include contract and is building what is projected to be 300 currently has over 4,300 firm orders for commercial 1,200 employees. new submarine hunters at the Renton plant. Boeing airliners, which is a seven year backlog of inventory, remains the largest employer in Renton, which is its largest ever. Google’s Puget Sound workforce is comprised mostly home to over 10,000 employees and three of the of engineers that are entirely responsible for Google aerospace giant’s six major business divisions: Talk and Talk Video, as well as having their hand in Boeing Commercial Airplanes, Boeing Capital GOOGLE a long list of products such as the Google Content Corporation and the Shared Services Group. Google currently employs more than 1,000 people Network, Search, Maps, Chrome, Gmail, YouTube, between its Seattle and Kirkland offices. The online Analytics, AdPlanner, AdWords and more. Boeing has increased its workforce at its Renton search giant announced in August of 2011 that it plant by hiring nearly 1,200 workers over the past signed a 58,000 square foot lease in Bothell, which two years, and plans to hire an additional 2,000- EASTSIDE EMPLOYERS AND THE PACIFIC will add 840 more Google jobs to the region. 3,000 workers through 2016. Boeing has gone on a NORTHWEST SILICON VALLEY building spree for its Next- Generation 737, increasing Companies like Microsoft, Costco, Nintendo, its production rate from 31.5 planes a month to 38 T-Mobile, The Boeing Company, AT&T Wireless, planes at the end of 2013, and up to 42 planes by Google, Yahoo!, Amazon.com, Verizon Wireless, 2014. In August of 2011, Boeing announced the new Clearwire, The Walt Disney Company, PACCAR, 737 MAX will be built out of Renton. With its first and Root Sports all have global, national, or major delivery scheduled for 2017, the new airplane already divisional offices on the Eastside. It is also the hub has over 1,000 orders. for biotech and medical companies including Amgen, Icos and Merck. Within recent years, the boom of Boeing has been the catalyst in Puget Sound’s the video game industry made companies like Sony economic resurgence. The aerospace giant has hired Online Entertainment, Warner Brothers Entertainment, nearly 14,000 new employees since 2011, and there Google’s presence in the Puget Sound region began Microsoft Gaming Studios, Monolith Productions, and are no signs of slowing down. With an employment in 2004, when it leased out 30,000 square feet of many others call the Eastside their home. multiplier of three, Boeing has been responsible for space from Getty Images in Seattle’s Fremont area, an estimated 42,000 new indirect jobs over the past which is just 3 miles from Kavela. In the summer of two years. King County Eastside Overview

Eastside’s Largest Employers

Sony Online En- AT& T Wireless HTC Corporation tertainment Boeing InfoSpace Swedish Hospital Symetra Finan- Clearwire Microsoft cial Coinstar Nintendo T-Mobile Overlake Hos- Costco University of Wa pital Puget Sound Eddie Bauer Walt Disney Energy Expedia Rot Sports Yahoo!

Google Safeway

Group Health Siemens Puget Sound Overview

Greater Seattle Area The area’s natural beauty and mild climate encourage year-round activities such as hiking in the Olympic Seattle is the largest city in the four-county or Cascade Mountains, kayaking on Lake Union, or metropolitan area known as the Puget Sound cycling on any of the many rails-to-trails paths. region. The area’s other major metropolitan cities include Bellevue, Tacoma, Everett, and Bremerton. Art and culture are also driving forces in the region. There are 34 museums, 30 performing arts centers, Surrounding these are growing cities that include and—at last count—at least 29 professional theatre Kirkland, Redmond, Kent, Renton, Bothell, and companies. Issaquah. Professional sports teams include major league Climate football and baseball as well as soccer and The temperate climate lets residents and visitors hockey. The area’s professional lacrosse team, the Washington Stealth, won the world championship in enjoy the outdoors year-round. High temperatures in 2010. In addition, there is thoroughbred racing, minor EBI in the Greater Seattle Area is 20% higher than the July average just 75 degrees, while low temperature league baseball, and the University of Washington national median. drop below freezing an average of only 15 days per Huskies to cheer on. year. The rainfall keeps the region’s vegetation a lush Approximately 56% of the population is in the prime green, however, it rarely rains heavily and the total Demographics workforce age of 25-64. Residents are among the average rainfall is 35 inches, less than New York City The region consists of approximately 3,742,100 (2010, most highly educated in the nation, with more than or Miami. U.S. Census Bureau) residents in King, Snohomish, 35% having at least a bachelor’s degree and one-third Outdoor Activities, Culture, Sports Pierce, and Kitsap counties. The current figure of those holding a graduate or professional degree. represents a 13.0% increase over the 2000 Census. Positive population growth in the region is expected Long-term forecasts call for the Greater Seattle area to continue through the end of the forecast period. to resume its historic strong growth patterns. The The Puget Sound Regional Council is estimating the Puget Sound Regional Council expects the area to area’s population to be 4,479,131 in 2030, an 11.9% add approximately 855,000 new jobs by 2040. increase. Education The Seattle-Tacoma-Bellevue metropolitan area (MSA) Washington State is home to six public four-year is clearly the economic engine of Washington State. colleges and universities, 34 public community The MSA ranks 13th among 362 markets nationwide and technical colleges, and more than 300 private in terms of effective buying income (EBI or after-tax, colleges, universities, career, and vocational schools. discretionary spending power). The median household Puget Sound Overview

The University of Washington continues to gain neighborhoods. The school was founded in 1891 and ranks among the top 10 in general freight tonnage increased national recognition. According to the is the largest independent university in the Pacific carried by trucks intrastate. The competition results in America’s Best Colleges, U.S. News & World Report Northwest. The university has a total enrollment of favorable negotiated freight rates. in 2011, the UW was ranked 41 among all national 7,900 students of which 56% are undergraduates. universities, ahead of University of Texas-Austin Seattle University employs 1,381 faculty and staff. All regional communities are accessible from Seattle and University of Wisconsin-Madison. In addition, The U.S. News 2012 rankings place Seattle University over an efficient, well-planned freeway system. The 6th among the top universities in the West that offer a average commute between Seattle and outlying cities full range of masters and undergraduate programs. and suburbs is 23 minutes (non-peak) and 45 minutes (peak). The region’s highway network is anchored by Transportation three main highways:

King County’s has a well-developed transportation • U.S. Interstate 5 which runs north-to-south system which provides links to all parts of the country from Vancouver, British Columbia to San Diego, and world. Seattle’s port is closer to the main trading California partners in Asia than any other major U.S. port and the region’s distribution networks move goods • Interstate 90 which runs west-to-east connecting efficiently inland. Seattle with New York the university ranked 11 nationally among all public The region’s multi-modal transportation system • Interstate 405 (Washington) is a 30-mile stretch universities. includes two transcontinental railroads, nationwide of freeway that bypasses Seattle east of Lake trucking, three interstate highways, a ferry system, a Washington. I-405 runs from Lynnwood in the The U.S. News 2012 graduate school rankings show world-class port, and an international airport. north to Tukwila in the south. many of the UW’s graduate programs among the best in the nation. The medical school ranked first among The Burlington Northern Santa Fe (BNSF) and Union all schools in the country for primary care and the Pacific Southern Pacific (UPSP) railroad serve the School of Nursing also retained its top ranking for the greater Seattle area. Both railroads have spur lines 27th year. Overall the UW School of Medicine ranked that span the area, making it possible to deliver ninth among research medical schools and first almost any type of load. Outside of Puget Sound among public medical schools. The graduate program and across the state, there are over 4,000 miles of in computer science ranked seventh and the college operable track. of education graduate program was tied for ninth. Truck transportation in Washington is made possible Seattle University is a Jesuit university situated by over 3,700 interstate trucking companies, including on 48 acres in Seattle’s First Hill and Capitol Hill common carrier and contract companies. The state Puget Sound Overview

Over 23 million passengers annually ride the Midwest, East Coast, and Canada. 2010 marked a Aerospace Washington State Department of Transportation’s strong recovery is the region’s port activity. Seattle- The Puget Sound region has a proud history and a Ferry System, the largest in the country and third Tacoma grew 14.6% in terms of cargo volume in strong future as a leader in the aerospace industry. In largest in the world. This system transports over 10 2010, more rapidly than other major port region other 2013, aerospace supported more than 132,000 jobs million vehicles a year, more than any ferry system than Los Angeles /Long Beach. The Seattle Harbor (over 7,000 engineers) in the region and includes over in the world. The fleet has 20 auto-passenger ferries broke its own cargo volume record in 2010 with over 1,350 firms, making the area the largest commercial and two passenger-only ferries. The DOT operates 20 2.1 million TEUs (20 foot equivalent units). terminals and operates on 9 routes. In 2013, 34.7 million passenger and 292,708 metric The Port of Seattle has world-class facilities and tons of air cargo passed though Sea-Tac airport. relative proximity to Asia; the port is the fastest Passenger levels increased 4.7% from 2012 and the volume ranked the airport as the 21st busiest in the U.S. Because of the state’s strategic geographic location, Sea-Tac is one to two hours of flying time closer to Pacific Asia than Southern California airports. In addition, trans-polar routing enables Sea- Tac to rival East Coast cities like New York in flight times to European capitals.

Economy aviation center in the country. While the greater Seattle economy includes a broad The largest employer is Boeing Commercial Airplanes range of companies, local business and civic leaders which is headquartered in Renton about 15 minutes have identified key innovative, knowledge-based south of downtown Seattle. The region is home to route for cargo to and from America’s heartland. The industries that drive our economy and are critical to final assembly operations for the 737, 747, 767, 777, transit time from port cities in Asia to Seattle is eight the region’s current and future prosperity. and 787 aircraft. As of October 2014 Boeing had days, which is 30 hours less than through Southern 81,662 employees in the Puget Sound region. California ports. The Seattle-Tacoma-Everett port • Aerospace region is the third largest container complex in the • Clean Technology country, smaller only than New York / New Jersey • Information Technology Clean Technology and Los Angeles / Long Beach. It is the 10th largest US port in 2013 in terms of TEU’s and cargo activity • Interactive Media Analysts predict a boom in clean technologies amid supports more than 21,000 jobs. The region’s ports • Life Sciences an oncoming energy crunch. The alternative-energy serve not only the Pacific Northwest but also the industry’s revenues are projected to quadruple to Puget Sound Overview

$226 billion by 2017, according to a report by Clean opportunities presented by this emerging sector and Microsoft’s founding, over 250 companies have been Edge, a Portland-based market-research firm. to ensure Washington’s continued leadership. spun off through investment and development or from former Microsoft employees. There are more than 400 clean technology companies Information Technology located in the region employing more than 21,000 Many of the most well-known names in the software Amazon.com continued its strong employment people. There is a 64% greater concentration of clean and information technology industry are located in growth through 2013. The online retailer added 7,300 technology, or “green” jobs in the Seattle area than the Great Seattle area. The established companies employees worldwide this year, an expansion of more the U.S. average. include Intel, Microsoft, Amazon.com, Nintendo, than 30%. The company doesn’t release detailed T-Mobile, RealNetworks, Expedia, and several others. employment information for the region; however, Statewide, the clean technology industry accounted recent local leasing activity indicates many of the for more than 62,000 jobs in the sectors of energy The strong base of businesses has created the largest new and 2014 planned hires will be based in the efficiency, renewable energy, reducing pollution, employment cluster in the region, supporting nearly Seattle area. In March 2011, Amazon.com, leased and pollution cleanup. The sectors of wind, solar, 110,000 jobs. The Greater Seattle area has several approximately 460,000 square feet at the 1918 Eighth biomass, wave / tidal and geothermal energy currently world-leading strengths in the IT sector. The State office tower in downtown Seattle. This lease is in employ more than 17,000. Washington State has of Washington is the largest employer of software addition to the 3.0 million square foot headquarters long supported clean technology and has the largest publishing workers in the US. Washington ranks in South Lake Union which is apparently already near coordinated hydro-electric system in the world, first in the country in the creation of new software capacity. providing 73% of the state’s electrical power. companies. The rich and deep pool of talent has led other industry The Washington Clean Technology Alliance (WCTA) Intel is located just over the Thurston County line into leading IT companies such as Google to establish was established in 2007 to take full advantage of the Pierce County. The Intel Campus is comprised of two the area as an important location for growth. In large office buildings and a manufacturing facility, the Greater Seattle area, Google has a complex of housing 1,300 employees. The primary focus in new buildings in Kirkland and offices in the Fremont DuPont is engineering research and development of neighborhood of Seattle. A local manager has enterprise platforms for servers and workstations. indicated that at least 1,000 positions will be added to the 1,200 employees already working in the two Microsoft is the second largest employer in the locations. The local engineers are working on the high state of Washington. In addition to the nearly 42,598 priority projects such as the Chrome browser and employees in the region as of September 2014, the operation systems and company historically has had an estimated 3.4 implied Google Talk. employment multiplier. As a result, the company currently also supports nearly 98,000 indirect jobs The most recent major IT company to open a Seattle in the area. Microsoft has also greatly impacted the office was Salesforce.com in October of last year. region through next generation companies. Since Woodson Martin, the company’s SVP stated, “We are Puget Sound Overview

after the best and brightest software engineers in the and Biomedical Association (WBBA) to which over industry and a heck of a lot of those people live in the 500 local companies belong. The growth of this Top Puget Sound Area Companies Seattle area. That’s why we are there.” sector in Washington State is reflected in the fact Amazon.com Paccar, Inc. that the WBBA added 70 new members in 2010. The Interactive Media overall industry is estimated to generate nearly $7 AT&T Wireless Providence Health Care The Puget Sound is an undisputed global leader in billion in annual revenues. Alaska Airlines REI Interactive Media development. Starting with Cyan’s Berlex Laboratories Safeco In 2005, Washington State created the Life Sciences PC games of the nineties, Myst and Riven, to Valve’s Boeing Safeway Discovery Fund to support the life science industry as Half Life and Portal, and Bungie’s Halo trilogy, the Children’s Hospital Starbucks history of the area is strong. With Microsoft, Nintendo, a $350 million commitment to research over a 10 year period. Costco Swedish Health and RealNetworks in the region, along with over 150 Services Expedia, Inc. noteworthy game-technology companies, the Greater With a current endowment of $37 billion, the Bill Symetra Financial Seattle area can claim to be of the top three game- Group Health and Melinda Gates Foundation is also a major Cooperative T-Mobile development centers in the world. supporter of the area’s life science companies. Macy’s The Kroger Company Recent funding helped the University of Washington Industry leaders such as Warner Bros. Interactive, Microsoft University of move the Departments of Genome Sciences and Washington Gas Powered Games, NCSoft, and Sony Online MultiCare Health Bioengineering into a new, shared facility and helped Entertainment have offices here. Over the last System Virginia Mason Medical establish a Department of Global Health. Center few years, an industry task force gathered and Nintendo Weyerhaeuser - Forest collaborated with public and private sector leaders to The Foundation opened its new campus at 500 5th Nordstrom Products develop the Washington Interactive Media Program- Ave N in June 2011. The 12-acre Gates campus the first of its kind in the nation. The program is reinforces the area’s comeback, while adding a designed to promote, nurture and grow the video more buttoned-down sensibility. A pair of curved Disease Research Institute, PATH, the Seattle game industry in the area. office buildings, a reception pavilion, and a 1,000 Biomedical Research Institute, and the Benaroya There are currently over 15,000 jobs at Greater car parking structure anchor three corners of the site Research Institute at Virginia Mason. and may be joined by a third office building in the Seattle area companies or divisions wholly devoted . to gaming today and the industry in this region is future. Construction costs for this 640,000 square growing at over 30% each year. foot complex totaled $500 million, housing 1,116 employees. Life Sciences The South Lake Union biotechnology area, near both The life science industry in Greater Seattle includes, the Foundation and the University, houses The Fred but is not limited to, biotechnology companies, Hutchinson Cancer Research Center, the Institute medical device companies, research institutions, and for Systems Biology, the Pacific Northwest National global health organizations. The industry employs Laboratory (Seattle office), Amgen’s Helix Campus approximately 22,000 individuals. The strongest on Elliot Bay, the Allen Institute for Brain Science, the industry association is the Washington Biotechnology Pacific Northwest Research Institute, the Infectious Contact Information

Contact

Jeff Chaney Senior Vice President 425.450.1127 [email protected]

Alex Wheatley Vice President 425.450.1124 [email protected]