Seattle Office Market
In the third quarter of 2024, the Puget Sound office market experienced an increase in overall vacancy, rising by 40 basis points to 20.2%, alongside a net negative absorption of 111,928 square feet. Rents in the Puget Sound market remained under downward pressure in the third quarter of 2024, with average asking rates falling to $44.07 per square foot. This represents a 2.0% decline compared to the same period last year. Despite increasing vacancy and availability, tenant requirements rose in the third quarter. As of the quarter end, there were 203 traditional tenants and 25 life science tenants actively seeking space, totaling 7.8 million square feet in requirements.
Seattle Industrial Market
In the third quarter of 2024, the Puget Sound industrial market recorded a net absorption of 1.2 million square feet. However, despite this positive absorption, the overall vacancy rate rose to 7.0%, largely due to the delivery of several newly constructed but vacant properties. 2.6 million square feet of new industrial space was delivered, with an additional 6.3 million square feet still under construction. The average asking rent for the third quarter of 2024 was $12.82/SF NNN, reflecting a 1.1% decline from the previous quarter. Available sublease space reached a record high of nearly 4.8 million square feet, marking a 6.8% increase from the previous quarter.