Seattle-Tacoma Office Market Report
Seattle’s Office Outlook Remains Bright as Major Tech Employers Pave the Way to Recovery
Remote work hindered leasing. The metro’s well-established tech and professional services sectors translated to a large portion of the employment base able to work remotely during the health crisis. Uncertainty regarding return-to-office timelines affected leasing decisions and space needs, which led to a significant decline in absorption and a large influx of sublet space. As a result, over 5.4 million square feet was returned to the market over the past five quarters, elevating metrowide vacancy to 12.7 percent in June. Downtown Seattle had the largest rise in availability during that span, but headwinds are subsiding. Nearly 800,000 square feet of net absorption here from April through June compressed local vacancy for the first time since the onset of the health crisis.