Recovery Gains Depth and Diversity Q1 2026

The Eastside office market entered 2026 with continued momentum following OpenAI’s 250,000 SF expansion at City Center Plaza late last year. While Q1 leasing volume was relatively measured, the pipeline of larger Bellevue CBD requirements remains active, with several sizable transactions nearing execution that should further support Downtown Bellevue’s stabilization and recovery. Overall sentiment remains constructive, reinforced by steady tenant demand, Bellevue’s relative outperformance, and clear indicators of future upside.

A key dynamic shaping the market is the tightening supply of high-quality, move-in-ready, full-floor availability in Downtown Bellevue, particularly compared to peak conditions in mid-2024. As larger blocks—especially premium view space—have quietly diminished, tenant behavior is beginning to shift. Larger users are broadening their search criteria to include best-in-class suburban assets, lower bank floors, and non-trophy CBD buildings that previously saw limited consideration. At the same time, Bellevue’s post-COVID recovery is being strengthened by a more diversified tenant base, with new technology and AI firms driving positive net absorption. This evolution away from reliance on a small group of dominant employers is enhancing the market’s long-term resilience and balance.