OFFICE MARKET OVERVIEW

Vacancy dropped slightly quarter-over-quarter, with 2026 on pace to be the best year for net absorption since 2021. The wave of Bay Area tech companies growing in the region continued. Databricks’ lease of more than 142,000 square feet in Four106, a new development in the Bellevue CBD, was the largest of the quarter. Its presence has surpassed 270,000 square feet in Puget Sound, with the company establishing large offices in both Seattle and Bellevue. The three largest sales of Q3 are emblematic of what’s driving investment activity; namely medical office buildings, owner-users, and local value-add investors acquiring downtown properties at steep discounts. While these trends should continue, there are several large core and core-plus transactions that should also close before year-end. READ MORE >