Seattle’s office market may be facing challenges, but it continues to lead the nation in new office construction. According to the Puget Sound Business Journal, there are currently 6.59 million square feet of office space under development in the Seattle area – making it third on the list of U.S. metros with high levels of construction.
However, Seattle is not alone in its struggle with downtown offices sitting vacant. The Wall Street Journal reports that overall vacancy rates for major cities have reached a record high at 19.6%. In November, Seattle’s vacancy rate rose by 2%, reaching 22.3% and placing it among cities like Detroit, Houston and San Francisco with even higher rates.
To combat this trend, developers are finding innovative ways to repurpose existing spaces for different uses. Cushman & Wakefield recently announced plans for one of Seattle’s first office-to-residential conversions: Queen Anne Plaza will soon become a multifamily property thanks to Stream Real Estate’s purchase of the four-story building totaling over 52,000 square feet.
Despite these challenges and changes in usage trends within commercial real estate markets across America as reported by Connect CRE , developers continue their efforts towards creating more opportunities through new developments such as those seen here today despite current conditions impacting them negatively.
