Seattle Office Market
| Average Asking Rent (Price/SF) | $43.31 |
| Vacancy Rate (%) | 10.6% |
| Net Absorption (SF) | 1,036,012 |
The Puget Sound office market regained solid footing in the third quarter of 2021, recovering to pre-pandemic levels despite ongoing fears about the Delta variant. Increased leasing activity and declining sublease availability resulted in positive net absorption of over 1.0 million square feet, a level not seen since third-quarter 2019. The rising demand for office space is fueled by the end of remote work and the addition of new jobs. Property owners have shown increasing flexibility in leasing terms, including increased tenant allowances, to retain and entice tenants back to the office without devaluing their buildings by lowering rents. Employers are following suit by offering employees a variety of perks to resume in-person work. These benefits, coupled with the added peace of mind provided by company-mandated vaccinations, have resulted in an uptick in tenant demand.
Seattle Industrial Market
| Average Asking Rent (Price/SF) | $10.62 |
| Vacancy Rate (%) | 4.3% |
| Net Absorption (SF) | 7,675,960 |
The Puget Sound industrial market maintained its hot streak during the third quarter of 2021, continuing a record-breaking year. The industrial real estate market was already booming prior to the pandemic, but the resultant disruption of the global supply chain has pushed demand to new heights. Amid supply chain challenges and the explosion of consumer demand for ecommerce, companies have begun to reassess the stability of their inventories, resulting in an increased need for warehouse space and distribution centers. Port markets have especially benefitted from this push to expand industrial footprints, and the Puget Sound market is no exception; the region has seen historically low vacancy rates and rising rents over the past year. In addition to leasing impacts, the shift towards technological solutions to logistics and distribution has resulted in a need for new product capable of supporting advanced technologies.