Vacancy in the Downtown Seattle Office Market continued to climb, ending the second quarter of 2024 at 25.6percent, almost a full percentage point higher than in the first quarter of 2024. The 25.6 percent vacancy rate includes 22.2 percent of direct vacancy and 3.4 percent of sublease vacancy. The trailing 12-month net absorption for the Downtown Seattle Office Market at the end of second quarter is -2,529,975 rentable square feet. The amount of office space under construction is approximately 2,221,684 rentable square feet.
Pressure from new supply should be minimal after the current supply wave dissipates. Seattle’s construction starts were also at their lowest level on record last year. Less than 400,000 square feet of office projects broke ground in 2023, and no major projects have broken ground in 2024.
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