Commencement Bank Eyes HQ Relocation Near Seattle

The company will occupy the newly leased space starting next year.

 The office building at 1313 Broadway in Tacoma, Wash.
The six-story office building is currently undergoing cosmetic renovations. Image courtesy of CommercialEdge

Commencement Bank has signed a 18,000-square-foot, long-term lease at 1313 Broadway Plaza in Tacoma, Wash., a Seattle suburb. The company will relocate its headquarters to a full floor of the 93,000-square-foot building early next year. X2Capital is the owner.

The bank’s HQ and Tacoma branch are currently at 1102 Commerce St., less than half a mile from their future location. Commencement has been occupying four of the building’s six floors for the past 12 years.

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X2Capital acquired 1313 Broadway in 2018 for $12.5 million from PF Financial Services, according to CommercialEdge information. In 2021, the asset became subject to a $5.8 million loan originated by Wells Fargo Bank.

Dating back to 1976, the six-story building was completely renovated in 1992, the same source shows, and went through cosmetic improvements in 2017. Currently, the Class A property is undergoing further renovations, including a new lobby, common area and storefront.

The office building features floorplates between 17,109 and 21,867 square feet, four passenger elevators and about 80 parking spaces. Tenants include Northwest Hardwoods and Merit Harbor Capital.

Located in downtown Tacoma, the facility is close to several dining and retail options and some 24 miles from Seattle–Tacoma International Airport.

Kidder Mathews Senior Vice Presidents Drew Frame and Ray Schule, along with Executive Vice President Will Frame, brokered the transaction on behalf of the tenant.

Seattle’s office sector faces headwinds

The Seattle market’s office vacancy rate clocked in at 22.5 percent in February, 460 basis points higher than the national average, according to the latest CommercialEdge office report. The metro’s listing rate was $37.87, close to the $37.83 U.S. average, but 2 percent lower year-over-year.

In one of the largest deals since the beginning of the year, Pokémon signed a 526,595-square-foot, long-term lease at Skanska’s The Eight development in Bellevue, Wash. The company is expected to move in starting January next year.

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