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Real Estate Trail
Institutional Press Wire
Connect CRE · Office

Fred Hutch Cancer Center Buys $18M Federal Way Office Building

Via Connect CRE · September 24, 2026
Compiled by Real Estate Trail Editorial · September 24, 2026

Why this matters

Office continues to trade in two distinct markets: trophy assets in walkable submarkets that are leasing at or near record rents, and commodity Class B and C buildings where the basis is still resetting. Underwriting on the latter has moved toward replacement-cost-minus, with credit underwriting now leaning on tenant covenant and remaining lease term rather than mark-to-market expectations. For LP-positioned capital, the read-through is that the bifurcation is now a structural feature of the sector, not a cycle to wait out.

Editorial analysis · Real Estate Trail Editorial

On the RET wire

  • Disclosed office deal value tracked in September 2026: $11.9B across 56 reported transactions. All Office coverage

Computed from Real Estate Trail’s own tracked coverage

Excerpt from Connect CRE:
Fred Hutchinson Cancer Center has completed the $18 million acquisition of a former DaVita office building in Federal Way. Realty Income sold the building, which it acquired from Weyerhaeuser for $19.8 million in 2012…
Read the full article at Connect CRE

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