The Haves and the Have Nots Q1 2024

2024 welcomed tenant demand exceeding the historical norm for much of the first quarter. That demand so far is hyper-focused on best-in-class, well-located, amenitized assets. Trophy buildings have so far sidestepped the deep slump the region is experiencing in commercial office space. Whereas older buildings or those outside of the Bellevue central business district are bearing the brunt of the sharp correction in tenant occupancy. Premier CBD assets have not suffered a measurable drop in rental rates even as vacancy rates across the Eastside have shot to 18.2%. Conversely, mid-tier Bellevue CBD assets have experienced a 13-15% drop in rental rates, and many Class A properties in the suburbs have been hammered with an over 35% drop in rental rates.