07/05/2023
Unlike other post-pandemic quarters, Q2 2023 realized some material changes in overall fundamentals as we saw large increases in total vacancy coupled with decreases in average asking rates throughout all office building classifications in the Seattle area. Seattle total availability (vacant space PLUS occupied space being marketed as available) reached a new high of 28%. This is largely the bi-product…
Read More Download PDF07/05/2023
The second quarter was a mixed bag for the Eastside. Fundamentals continued their downward spiral since the market peak of 2020. Eastside availability (vacant space PLUS occupied space being marketed as available) reached a new high of 23.3% with every submarket, other than Kirkland, pushing availability higher. Recently, some tenant demand has resurfaced. Most tenants with 2024 lease expirations are…
Read More Download PDF04/03/2023
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…
Read More Download PDF04/03/2023
After five years of breakneck growth across the Eastside, the bloom is off the rose. 2023 kicked off with another rise in vacancy, and ominously the availability rate reached a recent historic high. Eastside vacancy stands at 9.7%, which is up from a cycle low of 5.9% in 2019. The availability rate – the combination of vacancy, sublease and marketed…
Read More Download PDF01/02/2023
The Puget Sound’s office market continues to realize negative setbacks from the shift to remote work in addition to the looming threat of an economic recession. As a result, we have seen total office demand in Seattle significantly decrease during the 2022 year – measuring at half of 2021’s active tenant demand. As of Q4 2022, the entire Seattle market…
Read More Download PDF01/02/2023
After three quarters of relatively stable vacancy, the Eastside stumbled in the fourth quarter. Vacancy rose 60 bases points to close at 9.0% which was last observed in 2017. In early 2023, we do not expect a repeat burst of tenant demand to soak up sublease space as we witnessed in the first half of 2021. A further wave of…
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