Seattle Office Market
| Average Asking Rent (Price/SF) | $45.65 |
| Vacancy Rate (%) | 11.1% |
| Net Absorption (SF) | -375,253 |
Following three quarters of steady recovery from the worst of the pandemic, the Puget Sound office market slowed in the second quarter of 2022, hindered by construction delays and economic challenges. Although most large employers announced their return-to-office plans in late 2021, implementing those plans has proven challenging as workers negotiate remote and hybrid work. Due to the tight labor market, many employers are still allowing positions to remain remote or hybrid to help attract new workers and retain existing staff. Despite these challenges, Kastle keycard data shows that national office occupancy hit 44.2% at the end of June, its highest point since the beginning of the pandemic. This number is expected to continue to climb in the coming months. Hybrid work models are certain to remain, but the physical office remains vital to product innovation, speed to market, and employee engagement.
Seattle Industrial Market
| Average Asking Rent (Price/SF) | $11.77 |
| Vacancy Rate (%) | 3.1% |
| Net Absorption (SF) | 2,156,976 |
The Puget Sound industrial market cooled slightly over the second quarter of 2022 as inflation rose and fears over the potential for recession grew. The Fed has taken unprecedented measures to increase interest rates to combat inflation, which is currently being reported at 8.6%. The impact on the market was swift, causing some turbulence in the investment market due to the uncertainty of debt costs. Despite a slowdown in sales activity, the leasing market has remained strong.
Download Seattle Industrial Market Report 2Q22