Q3 2023 Seattle Office Market Report
Office vacancy in the Seattle metro region continues to climb and it is expected that office vacancy will continue to increase for the rest of 2023 and beyond, which will soften the market further in favor of tenants. Many businesses are taking firmer stances on employee return-to-the-office policies, including the top 5 technology employers in the Puget Sound: Amazon, Microsoft, Meta, Google, and T-Mobile.
Nevertheless, vacancy, driven by negative absorption as companies right-size or consolidate space, will put downward pressure on office rents. During the third quarter of 2023, the Downtown Seattle Office Market vacancy jumped to 21.3 percent (up from 20.4 percent in the second quarter of 2023), including 17.1 percent of direct vacancy and 4.2 percent of sublease vacancy. The vacancy rate has been at a steady incline since the start of the pandemic. The 12-month net absorption for the Downtown Seattle office market at the end of the third quarter was at -2,314,238 rentable square feet. The amount of office space under construction is approximately 1,301,114 rentable square feet. Recent deliveries include some of the largest office deliveries to date in downtown Bellevue, much of which was owner-occupied.
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