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Market Insight

Poised for a Resilient Recovery in 2026 Q4 2025

The Eastside office market ended 2025 with slow but steady recovery momentum, supported by rising tenant engagement, increasing tour activity, and new large requirements forming in the Bellevue CBD. Return‑to‑office policies remain a major tailwind, with Amazon’s mandate and Microsoft’s upcoming three‑day requirement reinforcing confidence in the market. Amazon’s continued investment in major Bellevue developments further signals long‑term commitment and anticipated job growth on the Eastside.

Downtown Bellevue remains the region’s strongest submarket, attracting AI firms, tech users, and new‑to‑market entrants drawn to modern office inventory and a strong talent base. While vacancy rose slightly with the delivery of Four106, demand remains concentrated in the CBD. Suburban markets also gained momentum in 2025, with the I‑90 corridor seeing renewed large‑tenant activity and Bothell and Redmond benefiting from R&D and life sciences users. Entering 2026, the Eastside is poised for continued steady recovery, led by Downtown Bellevue with suburban submarkets following closely behind.

21.8% Vacancy
43,136,174 Total SF
9,417,148 Vacant SF
Puget Sound Commercial Real Estate Market Insight