Seattle Office Market
Net absorption in Q2 was negative 331,523 sq. ft., an improvement over the deeper quarterly losses seen in 2024, suggesting the market may be past its worst contraction. Sublease vacancy held steady at 27.8%, with approximately 6 million sq. ft. available, showing early signs of market stabilization. Class A asking rents in the Puget Sound region rose from $50.66 to $51.97 per sq. ft. per year, full service, driven by demand for high-quality, well-located space.
Seattle Industrial Market
Through the first half of 2025, the Puget Sound industrial market has demonstrated continued resilience, supported by stable rents and sustained construction activity. Average asking rents reached $12.59 per sq. ft. NNN, remaining above the $12.00 threshold since Q2 2022. Sublease availability continued to rise. Following a sharp increase of 3,712 basis points (bps) between Q3 and Q4 2024, sublease availability climbed another 345 basis points in Q2 2025 compared to Q1. This was largely driven by four large blocks of 100,000 sq. ft. or more entering the Tacoma/Fife submarket, contributing to elevated availability across the region.