Tenants are in the driver’s seat in the Puget Sound office market, but landlords are making small accelerations with rising asking rent in Downtown Seattle and the Eastside. Brokers and landlords report an uptick, or in the case of the Bellevue CBD, a high level of interest from tenants.
The largest sublease added Downtown during Q2 was 79,000 sq. ft. at Russell Investments Center from Zillow, but the largest one removed was 70,599 sq. ft. at 111 South Jackson with Galvanize, keeping things in check. The overall trend was the same with available space (advertised space that may or may not be vacant) rising by only 34 bps or 181,000 sq. ft. Downtown during Q2.
While other submarkets work towards a post-pandemic recovery, the Eastside indicated minimal signs of distress during Q2 2021. Large tenant contractions slowed, leaving net absorption at a negative 10,131 SF, contrasting with 1.2 million sq. ft. the region lost in Q2.