The Seattle-Tacoma metro area office is showing signs of declining vacancy, according to a recent report by Marcus & Millichap.
“Seattle-Tacoma’s office market is showing broader signs of stabilization as improving absorption and a nearly empty development pipeline support declining vacancy, although recovery continues to vary by property class and submarket,” said Joel Deis, senior managing director, market leader.
Key findings of the report include that approximately 2.8 million square feet of office space was absorbed on net during the year ended in June, lowering vacancy from a peak of 19.7% in the second quarter of 2025 to 18.6%. Development will be virtually nonexistent in 2026, with only two properties totaling 35,000 square feet scheduled for completion. The previously anticipated delivery of Amazon’s roughly 1 million-square-foot Bellevue 600 Tower 1 is no longer expected this year.
The 2026 forecast calls for vacancy to decline 80 basis points to 18.4% and average asking rent to increase 0.8% to $29.30 per square foot by year-end, although downtown rents may continue to face downward pressure.
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