The Puget Sound region is emerging as one of the country’s most active office markets for artificial intelligence users, supported by a deep and growing AI workforce. A recent report from JLL ranks the Puget Sound second nationally for AI employment, with much of that talent concentrated within the region’s major technology employers. This concentration is helping to underpin office demand at a time when broader office fundamentals remain challenged in many U.S. markets.
JLL’s analysis finds that since 2022, nearly three-quarters of all AI-related office leasing activity in the Puget Sound has come from companies headquartered outside the region. That level of demand from out-of-market tenants underscores the area’s draw for AI firms looking to expand or establish new hubs, and it highlights the role of the local talent base and tech ecosystem in attracting new entrants.
The report further indicates that several large AI office leases are expected to finalize in the coming months. If those transactions close as anticipated, 2026 is on track to become a record year for AI-driven office leasing in the Puget Sound. This anticipated pipeline signals continued momentum for the region’s office sector, particularly in buildings and locations that appeal to technology and AI users.
One recently announced example is OpenAI’s expansion in downtown Bellevue. Earlier this year, the company added 223,000 square feet of office space at City Center Plaza in Bellevue’s core business district. The additional footprint reflects OpenAI’s growing presence in the Puget Sound and illustrates the scale at which some AI users are committing to the region.
According to the report, 72% of AI office leases of 10,000 square feet or more signed since 2022 have been executed by companies headquartered outside the Puget Sound. That metric reinforces the extent to which inbound corporate activity is helping drive net-new demand rather than merely reshuffling existing tenants within the market. These larger deals are an important contributor to overall leasing volumes and can have an outsized impact on occupancy trends in targeted submarkets.
Looking ahead, the region is expected to continue registering new leasing activity tied to AI firms across both Seattle and the Eastside, including Bellevue. While the report focuses on AI-specific tenants, the broader implication is that the Puget Sound’s tech-oriented submarkets may see relatively stronger performance than the overall office market, as AI and technology users expand their space commitments and new-to-market companies secure long-term locations.
