The Puget Sound office market posted 356,000 square feet of positive net absorption in Q1 2026, an improvement of 334,000 square feet quarter-over-quarter, according to a recent report from CBRE.
The Eastside continued to lead key metrics, supported by improving vacancy, tightening availability, and sustained demand from large-block tenants and Artificial Intelligence-related tech companies, such as Uber Technologies, Inc., signing a long-term lease at Four106, a 490000-square-foot office tower in downtown Bellevue. OpenAI also recently expanded its Bellevue office footprint, adding 223,000 square feet of space at City Center Plaza.
Vacancy in the region went down slightly to 28.3% in Q1 2026 from 28.6% in Q4 2025, and the total market availability rate decreased from 29.4% to 29.0%. The overall average direct asking lease rate in Q1 2026 ended the quarter at $47.10 per square foot per year, full-service gross, up 0.3% from Q4 2025. As regional conditions improve, market fundamentals continue to support a positive outlook for both Seattle and the Eastside.
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