The regional office market in Seattle, Washington continues to struggle with rising vacancy, negative net absorption and meager sale activity. According to a new report from Kidder Mathews, the vacancy rate increased by 100 basis points from 11.21% last quarter to 12.21%. Despite steady job growth through the first half of 2023, high inflation levels and moderating job growth projections are expected for late 2023 into 2024. The office vacancy rate is now 15.51%, up 125 basis points from 14.26% this time last quarter and 257 basis points higher than 12.94% one year ago respectively .
Total sales volume over the quarter was extremely low at $92 million following three previously low volume quarters; however two markets – Southend & Northend – posted nominal improvement dropping their respective vacancies slightly (1561%-1566%; 810%-814%).
Overall it appears that Seattle’s leasing market will continue struggling until economic conditions improve significantly in 2024 or beyond
