Commencement Bank Secures 18K SF Lease for New Tacoma HQ

Commencement Bank, a financial institution based in Tacoma, Washington, has finalized a long-term lease agreement for an 18,000-square-foot space at 1313 Broadway Plaza. The move will see the bank relocating its headquarters to a full floor within the building early next year. X2Capital is the owner of the property.

Current and Future Location

Currently situated at 1102 Commerce St., less than half a mile away from its upcoming headquarters, Commencement Bank has been operating its headquarters and Tacoma branch from this location. The bank has occupied four of the six floors in the building for the past 12 years. X2Capital acquired 1313 Broadway in 2018 for $12.5 million from PF Financial Services and secured a $5.8 million loan from Wells Fargo Bank in 2021.

Building History and Renovations

Constructed in 1976, the six-story building underwent a complete renovation in 1992 and received cosmetic upgrades in 2017. Currently classified as a Class A property, it is undergoing further renovations, including enhancements to the lobby, common areas, and storefront.

Property Features

The office building offers floorplates ranging from 17,109 to 21,867 square feet, four passenger elevators, and approximately 80 parking spaces. Notable tenants within the building include Northwest Hardwoods and Merit Harbor Capital.

Location and Amenities

Situated in downtown Tacoma, the facility enjoys proximity to various dining and retail establishments. Additionally, it is conveniently located around 24 miles from the Seattle–Tacoma International Airport.

Brokers and Transaction Details

The lease agreement was facilitated by Kidder Mathews Senior Vice Presidents Drew Frame and Ray Schule, along with Executive Vice President Will Frame, who represented the tenant during the transaction.

Seattle Office Market Overview

The Seattle office market currently faces challenges, with a vacancy rate of 22.5 percent in February, which is 460 basis points higher than the national average. Despite this, the listing rate remains close to the national average at $37.87, though it has decreased by 2 percent year-over-year.

Notable Lease in Bellevue

In a significant development within the region, Pokémon signed a long-term lease for 526,595 square feet at Skanska’s The Eight development in Bellevue, Washington. The move is anticipated to commence in January of the following year.