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Seattle Market Reports

Seattle Office Market

Average Asking Rent (Price/SF) $38.79
Vacancy Rate (%) 7.6%
Net Absorption (SF)       1,469,605

The Puget Sound office market continued to surge in the second quarter, with average asking rents increasing to $38.79/SF, up 4.4% compared with the first quarter. Overall vacancy in the region dropped to 7.6%, down 50 basis points from the previous quarter and down 180 basis points year over year. There was 1,469,605 square feet of net absorption in the quarter, and the ongoing construction boom delivered 980,449 square feet of new Class A office product. Leasing activity was strong, up more than 1.0 million square feet compared with the first quarter, largely because of massive leases signed by technology companies in the Seattle Central Business District, Lake Union and Bellevue CBD submarkets.

Seattle Industrial Market

Average Asking Rent (Price/SF)                            $9.76
Vacancy Rate (%)            3.9%
Net Absorption (SF)   1,381,055

The Puget Sound has ranked among the hottest industrial real estate markets in the nation recently, and that trend continued in the second quarter of 2019. Regional demand remained strong, with 1.4 million square feet of net absorption in the second quarter. The ongoing construction boom increased supply, as 2.4 million square feet of new product delivered in the quarter, bringing the year-to-date total to 3.7 million square feet. The market expansion is being driven by manufacturers and retailers that are in a mad dash to acquire last-mile, distribution and logistics facilities to enhance their ability to meet the explosion in e-commerce spending, which was up 15.0% nationally in 2018. As real estate prices in Seattle have soared, much of the development is happening in the suburban areas south of the city, with Pierce and Thurston counties combining to deliver more than 2.0 million square feet on the year. Although roughly 75.0% of the new space is spoken for, this massive delivery pushed the vacancy rate to 3.9%, an increase of 10 basis points compared with the first quarter. Excluding buildings delivered in 2019, the regional vacancy rate was 3.4% in the second quarter.

Seattle Office Market Report
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Seattle Industrial Market Report
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