Q4 2023: Seattle Office Market Report
In the fourth quarter of 2023, the Downtown Seattle Office Market vacancy increased again to 22 percent (up from 21.3 percent in the previous quarter), including 18.1 percent of direct vacancy and 3.8 percent of sublease vacancy. The 12-month net absorption for the Downtown Seattle Office Market at the end of the fourth quarter of 2023 was at (2,651,646) rentable square feet. The amount of office space under construction is approximately 1,582,742 rentable square feet. It should be expected that office vacancy will continue to increase in the new year, which will soften the market further in favor of tenants.
According to the U.S. Bureau of Labor Statistics, the seasonally adjusted monthly unemployment rate for Washington State is 4.0 percent slightly above the nationwide rate of 3.7 percent. In Seattle/Tacoma/Bellevue, the unemployment rate grew from 3.7 percent in September 2023 to four percent in November 2023. While rates are climbing, unemployment is still historically low.
According to the U.S. Bureau of Labor Statistics, the seasonally adjusted monthly unemployment rate for Washington State is 4.0 percent slightly above the nationwide rate of 3.7 percent. In Seattle/Tacoma/Bellevue, the unemployment rate grew from 3.7 percent in September 2023 to four percent in November 2023. While rates are climbing, unemployment is still historically low.