Seattle Office Market
2Q23
Absorption in the first quarter of 2023 totaled a net negative 1.5 million SF. Much of the new vacancy can be attributed to large blocks of sublease space added to the market by major tech occupiers. Overall vacancy increased to 14.1% in the second quarter of 2023, up 150 bps quarter over quarter, with direct vacancy at 12.4%. Overall asking rates declined during the quarter to $45.08/SF, a 0.2% decrease from the first quarter of 2023. The development pipeline remains robust, with 8.4 million SF currently under construction.
Seattle Industrial Market
2Q23
Absorption in the second quarter of 2023 totaled negative 80,134 SF, bringing the annual net absorption to negative 742,833 SF. The construction pipeline trended downward slightly for the second consecutive quarter but remains robust, with 12.1 million SF underway. Vacancy and rents both increased year over year. Vacancy grew to 4.3% as deliveries modestly outpaced absorption. Higher-priced space delivered to the market and still-robust demand drove strong yet decelerating 12-month rent growth of 4.8%. Demand for industrial space slowed during the second quarter of 2023 and leasing activity totaled 3.2 million SF, the lowest quarterly volume since the first quarter of 2019 and a 39.5% decrease year over year.