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Seattle Market Reports

Seattle Office Market

Average Asking Rent (Price/SF) $38.45
Vacancy Rate (%) 7.6%
Net Absorption (SF)       1,391,343

The Puget Sound office market continued its relentless expansion in the third quarter of 2019, with asking rent and vacancy rates maintaining or surpassing recently established record levels. Average asking rents in the region increased by 1.7% on the quarter and by 7.5% year over year, up to $39.45/SF. The overall vacancy rate remained at 7.6%, the same as last quarter, but down 110 basis points compared with the third quarter of 2018. The region experienced 1,391,343 square feet of net absorption in the third quarter, bringing the year-to-date total to 3,151,521 square feet, the most of any market tracked by NKF research. This quarter's absorption was largely driven by new construction projects, many of which delivered fully leased, such as Google's Lakefront Blocks and Facebook's Arbor Blocks, both of which are located in the Lake Union submarket.

Seattle Industrial Market

Average Asking Rent (Price/SF)                            $9.89
Vacancy Rate (%)            4.6%
Net Absorption (SF)     -211,457

The Puget Sound industrial real estate market had a solid third quarter, building on momentum generated during the first half of the year. Average asking rents increased to $9.89/SF, up 1.3% compared with the second quarter and up 5.7% year over year. Puget Sound industrial rents are 34.2% higher than the national average, good for the ninth-highest industrial rent in all markets tracked by NKF Research and the third-highest rent outside of California. Construction activity remained brisk, with 1.9 million square feet delivered this quarter and 3.8 million square feet currently under construction. The third-quarter deliveries brought the region's year-to-date delivery to 5.6 million square feet, which, given the current inventory in the development pipeline, could set a record for annual deliveries by exceeding 6.3 million square feet. Vacancy increased by 70 basis points compared with the previous quarter, largely because of the new deliveries that have yet to be leased; buildings delivered after 2017 have a vacancy rate of 37.5% and account for nearly one-third of all vacant space in the market.

Seattle Office Market Report
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Seattle Industrial Market Report
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