Seattle Office Vacancy Spikes as Tenants Downsize Space
And while absorption improved from -449,000 square feet to 492,000 square feet, the figure remained in negative territory. Also, overall rents are down by 0.5 percent to $54.55 per square foot.
"Tenants continue to downsize their leased area," Colliers explained.
But here's where things start to get encouraging. Offices are starting to fill up again and landlords are honing in on the fight for quality trend by improving lobbies and adding amenities such as spas and gyms to lure tenants, according to Colliers. This is highlighted by Class A lease rates increasing to $55.41 per square foot, from $54.55 per square foot.
"Return-to-office mandates are not having a net positive impact on leasing activity, yet. They are, however, creating more densely occupied offices," Colliers noted.
"Placer.ai foot traffic data shows that between August 2024 and August 2025, major office buildings in the downtown core have increased their in-office attendance by 7.2%, measured by visits per occupied square foot. This indicates more densely populated offices and could result in the need for companies to expand later."
Additionally, no new office product was delivered in Seattle during the third quarter, with nothing under construction.
Stoel Rives struck the largest lease, with its nearly 53,000 square foot deal at Tower 1201 in the CBD submarket. The Seattle Times Company and Kiln followed with 35,657 square feet and 32,276 square feet deals, respectively. Some 60 percent of the new leases during the third quarter were recorded in either the CBD or Pioneer Sq/Waterfront.
Source: GlobeSt/ALM