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Seattle Market Reports

Seattle Office Market

Average Asking Rent (Price/SF) $37.14
Vacancy Rate (%) 8.1%
Net Absorption (SF)       271,536

The Puget Sound office market got off to a good start in 2019, with asking rents averaging $37.14/SF, up 0.6% compared with the fourth quarter of 2018. The vacancy rate decreased by 10 basis points to 8.1%, its lowest level since before the Great Recession. Net absorption totaled 271,536 square feet, marking the 26th consecutive quarter of positive absorption for the region. Office development activity is at near-record levels, with 8.3 million square feet currently under construction, and is the reason Seattle has more construction cranes than any other city in the United States.

Seattle Industrial Market

Average Asking Rent (Price/SF)                            $9.79
Vacancy Rate (%)            3.8%
Net Absorption (SF)   1,052,721

The performance of Puget Sound industrial real estate in the fourth quarter of 2018 was solid if not spectacular. Vacancy rates increased, and absorption was below average. However, these statistics belie the true strength of the market, as rents, investment, and construction levels are at record highs. Disruption in the retail industry continues to drive up demand in the industrial real estate market, as a growing number of retailers are seeking to expand their distribution and logistics capabilities, leading to increased competition over a dwindling supply. Average asking rents in Puget Sound improved by 1.24% in the fourth quarter, from $9.65/SF to $9.77/SF, furthering the trend that has pushed rents up by an astounding 47.8% since the start of 2013. Asking rents in Pierce County grew faster than the regional average. This rent growth was driven by the Fife/Tacoma submarket, where rents increased by 13.75% from the third quarter, from $6.10/SF to $6.94/SF. The Eastside was the only cluster of submarkets to experience a significant decrease in asking rates, down 3.0% from the prior quarter and 11.0% from the start of the year.

Seattle Office Market Report
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Seattle Industrial Market Report
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