Seattle Office Market
In the second quarter of 2024, overall vacancy increased by 30 basis points to reach 19.7%, accompanied by a net negative absorption of 127,826 square feet in the region. Leasing activity was healthy, with total leasing volume reaching 1.9 million square feet, marking a 13.1% year-over-year increase. While leasing activity in the Seattle CBD remained subdued, there has been a notable resurgence in leasing across the Eastside and Northend submarkets year-to-date. Rents in the Puget Sound market continued to face downward pressure, with average asking rates at $44.14 per square foot during the second quarter of 2024, marking a year-over-year decrease of -1.9%.
Seattle Industrial Market
In the second quarter of 2024, the Puget Sound industrial market experienced modest net positive absorption, totaling 68,774 SF. The overall vacancy rate stood at 6.5%, with direct vacancy at 5.8%. Supply has started to outpace demand, as 2.3M SF of new product was delivered during the quarter. Only 19.2% of these new deliveries were preleased. The average asking rate for the second quarter of 2024 was $12.97/SF NNN, reflecting a marginal increase of 0.3% over the quarter. Although Class A leasing activity improved marginally since the first quarter, Class A warehouse leasing has struggled year-to-date, falling short of the historic volumes seen during the pandemic. In the second quarter, Class A leasing accounted for only 21.7% of total leasing activity.