Puget Sound office vacancy continued to climb, and asking rents ticked lower through the 2nd quarter. Technology companies dominated the largest transactions of the quarter, though budget cuts and layoffs in the public, private, and non-profit sectors put downward pressure on the office space demand in the region. Uncertainty; downward pressure on office space needs; high costs of construction; and stagnant, elevated interest rates contributed to less construction starts and cautious strategies among tenants and investors. Stubborn interest rates and rolling debt are leading to more properties hitting the market and sales volumes increasing.