Multinational Skanska Places Bets on Seattle Real Estate

Skanska USA is showing optimism about the Seattle real estate market by expanding it’s presence here.

Skanska USA, which is part of a multinational giant headquartered in Stockholm, already has a building and civil unit in Seattle with 434 employees. The company has now added a commercial development led by Lisa Picard as Executive Vice President and Murphy McCullough as its Director of Development.

We like the fundamentals of Seattle, says Picard. Its a desirable place for millennials (youth) to live and you see continued strong employment. She says growth is currently strong in the apartment market and is likely to develop in niche commercial office markets as well.

Its really interesting that Seattle is only the 12^th largest office market in the country but was 4^th largest last year in terms of net absorption.

While Seattle is often regarded as the last place to go into recession and the last place to come out, Picard says the general sentiment is that Seattle will come out of the recession earlier than other markets because of strong employment growth.

Picard says one Skanska advantage in tapping this market is its ability to work with its own construction unit. There is often tension between the developer and the contractor, she says.

Another advantage, she says, is access to plentiful capital at a time when banks are reluctant to lend. Because we have no need for debt financing, our development and investment platform allows us to be patient, as well as selective in terms of our focus on properties that are sustainable or have green potential, says Picard. Skanskas development and investment platform is incredibly unique, and we intend to execute an aggressive and slightly more contrarian strategy.

The five projects Skanska currently has under development across the country (projects ranging from 166,000 to 300,000 square feet) are all being financed with internal cash, Picard says. Although there is a general excess of office space in Seattle scaring other developers away from the sector, says Picard, there are micro markets where there is a dearth of space.”

Picard has more than 15 years experience in large real estate projects, developing office, residential, mixed use and hotel projects with a combined value in excess of $1.2 billion. She founded Muse Development in Seattle and served as its managing partner for the past four years. Additionally, Picard developed several projects with Hines in Seattle. Picard holds two masters degrees from the Massachusetts Institute of Technology: one in real estate development and finance and a second in city planning.

Lisa has a unique background based in urban design and investment finance and has a strong history of developing smart and timely real estate solutions, says Skanska USA Commercial Development President Mats Johansson. Her approach to projects and keen knowledge of the market will help us make the best decisions possible in the Puget Sound region. With a vibrant downtown market and new development opportunities in several adjacent neighborhoods, we feel its the right time to get involved.

Working with Picard is McCullough, who has more than 17 years of real estate development and construction experience. Prior to Skanska, McCullough worked for Tarragon, Hines and SDL McCarthy where he worked on notable Seattle projects such as IDX Tower, Harbor Steps and University Village. McCullough is a Seattle native and completed his Bachelor of Science from the University of Washington.

Skanska USA Building has been part of the Seattle market for nearly 65 years and has extensive experience in the Puget Sound Region on projects ranging from landmark buildings to smaller tenant improvement projects. In 2010, Skanska USA Civil entered the market and is currently replacing the Alaskan Way Viaduct from South King to South Holgate streets. All 3 business units represent Skanska USA and share the same office and resources.

Skanska USA Commercial Development, which was launched in the United States in 2008, is focused on the development of Class A sustainable office projects and mixed use urban development. In addition to the unit in Seattle, Skanska also has commercial development units in Boston, Houston and the Washington D.C. area. Each of these metropolitan areas has strong market drivers in addition to established Skanska construction units. For more than 20 years, Skanska Commercial Development Nordic and Commercial Development Europe have delivered 10 million square feet of space to their respective markets.