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Despite the lousy economy, a few developers still plan to break ground on big new office and residential projects in the downtown Seattle area in 2009.

But there won’t be many. You might be able to count them on one hand.

“With a few exceptions, if it’s not under construction right now, it won’t happen this year,” said land-use economist Matthew Gardner, who consults for many developers.

The outlook for new construction is bleak. Lenders aren’t lending. Condos in brand-new, high-end downtown towers aren’t selling.

Office-vacancy rates are starting to climb as new buildings without signed tenants come on line and downsizing companies like Starbucks and what once was Washington Mutual cut back on space.

Not surprisingly, more than two dozen projects have been delayed or canceled.

And yet a few do plan to break ground this year. They fall into two camps: Apartment towers — considered by many the most promising sector in the commercial real-estate market right now — and office buildings that already have signed deals with tenants.

Vulcan Real Estate says it plans to start construction early this year on four more office buildings for Amazon.com in South Lake Union: two five-story buildings at 510 Terry Ave. N., and two 12-story buildings at 333 Boren Ave. N.

They are part of a headquarters campus of up to 11 buildings that Vulcan agreed to build for Amazon in late 2007 after the online retailer signed long-term leases. Five buildings already are under construction.

Amazon initially committed to lease just 800,000 square feet from Vulcan. Late last year, despite the deteriorating economy, it exercised options on 860,000 more. Demolition already has begun on the old structures the four new buildings will replace.

But “Vulcan is a special case,” Gardner said. Other downtown office projects that haven’t been pre-leased are on hold.

Daniels Development said this week that construction of its 43-story Fifth and Columbia Tower, originally scheduled to start this March but up in the air for months, won’t begin until the office market stabilizes.

Original text: http://seattletimes.nwsource.com/html/businesstechnology/2008651637_newbuildings21.html?syndication=rss