Seattle Market Snapshot Q1 2023

Q1 2023 continued right where the prior quarter had left off – tepid tenant demand coupled with increasing vacancy throughout the Seattle office market. While the office sector was initially slowed by the pandemic fueled “Work From Home” movement, it has continued to realize setbacks from a slowing national economy and major reductions in work force by Big Tech. The entire Seattle market observed a vacancy rate of 15.16% (0.91% quarterly increase) and a 14.64% (0.81% quarterly increase) across all Class A buildings. Furthermore, we observed an increase in sublease vacancy to 5.77% (0.50% quarterly increase) or 3.7M SF. The resulting combined vacancy between sublease and direct available space was 20.93% as of quarter-end.