Seattle Office Market
The Puget Sound office market saw a 150-basis-point increase in vacancy rates during the fourth quarter of 2024, reaching 21.2%, accompanied by a net negative absorption of 276,927 square feet. Rents in the Puget Sound market remained under downward pressure in the fourth quarter of 2024, with average asking rates falling to $43.61 per square foot, a year-over-year decrease of 3.1%. Tenant demand remained stable throughout 2024, with active requirements hovering around 5.0% of the overall market inventory. Available sublease space decreased over the quarter with 6.3 million square feet of available space remaining.
Seattle Industrial Market
During the fourth quarter of 2024, the Puget Sound industrial market experienced a net negative absorption of 72,397 square feet. This adjustment brought the total annual absorption for 2024 to 446,495 square feet. Vacancy rates increased by a modest 10 basis points over the quarter, settling at 7.0%. Available sublease space reached a record high of nearly 6.6 million square feet, marking a 37.7% increase from the previous quarter. 6.5 million square feet of new product is under construction, with development activity expected to remain subdued as the current oversupply is absorbed. In the fourth quarter of 2024, the average asking rent was $12.84/SF NNN, showing little change from the previous quarter.