Seattle Office Market
Net absorption in Q2 was negative 331,523 sq. ft., an improvement over the deeper quarterly losses seen in 2024, suggesting the market may be past its worst contraction. Sublease vacancy held steady at 27.8%, with approximately 6 million sq. ft. available, showing early signs of market stabilization. Class A asking rents in the Puget Sound region rose from $50.66 to $51.97 per sq. ft. per year, full service, driven by demand for high-quality, well-located space.
Seattle Industrial Market
The year started with 21% of the supply under construction delivering, but much of it was built to suit. Fred310 – Bldg C delivered 1.2 million square feet with Floor & Décor ready to move in. Following a 38% surge between Q3-Q4 2024, in Q1 sublease availability increased by 12%, mainly due to four large blocks of at least 100,000 square feet entering the Tacoma/Fife submarket. Landlords have maintained steady rates in response to the recent slowdown in leasing activity. Tenants may need time to feel confident making long-term decisions given the current economic conditions.