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Market Report

Seattle-Tacoma Office Investment Forecast

2022 Outlook

Emerald City's Keystone Employers Take Active Role in Leasing and Acquisition of Office Properties

Divergence between core and suburbs more pronounced in the metro. While many of the markets across the nation are experiencing a variance in tenant demand among CBDs and outlying areas, additional factors specific to the metro are amplifying these trends. A payroll tax aimed at large corporations within the city of Seattle, for instance, raises the cost of doing business. This is giving pause to some midsize companies considering footprints in the CBD, where more than half of the vacant space in the market is located. Larger tech firms, however, continue to consider core areas. Apple, Google and Facebook all have large, long-term commitments, including Apple's local headquarters in South Lake Union. Entering 2022, the vacancy gap between core and suburban locations is nearly double the national average, suggesting a longer road to recovery for urban office properties. Beyond downtown, Bellevue is the most popular area for office firms, accounting for the three largest leases signed last year; Amazon and Facebook collectively added more than 1.1 million square feet in the Eastside city in 2021.
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