"Tech companies are still signing leases in downtown Seattle - but it's not enough to reverse a pandemic-era slide that pushed office vacancy to another record high, reaching 34.7% in Q4. The latest numbers from commercial real estate firm CBRE underscore how hybrid work and shrinking office footprints continue to weigh on a tech-heavy market like Seattle. The vacancy rate is up about two percentage points from a year ago, and a fivefold increase from before the pandemic."
"Downtown Seattle lost 257,879 square feet of occupied space in Q4, driven by tenant "rightsizing" and reductions in average space requirements, according to CBRE. Tech companies are still boosting leasing activity in downtown. Impinj renewed and expanded into 73,638 square feet at 400 Fairview, while DAT Solutions (which acquired Seattle startup Outgo last year) and Docker both took sublease space at the Maritime Building along the waterfront - 51,777 and 33,757 square feet, respectively."
Office vacancy in downtown Seattle reached 34.7% in Q4, about two percentage points higher than a year earlier and roughly five times the pre-pandemic rate. Downtown occupancy declined by 257,879 square feet in Q4 due to tenant rightsizing and reduced average space needs. Some tech leasing continued, including Impinj's 73,638-square-foot expansion and subleases by DAT Solutions and Docker. Market pressure stems from hybrid work policies, tech layoffs, and firms using AI to operate with smaller teams, producing slow rent growth. The Eastside shows early stabilization driven by Microsoft and Amazon activity and new-to-market entrants favoring Bellevue.
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