{"id":7162,"date":"2025-04-21T13:55:27","date_gmt":"2025-04-21T20:55:27","guid":{"rendered":"https:\/\/www.lee-associates.com\/northwest\/?p=7162"},"modified":"2026-07-07T13:21:44","modified_gmt":"2026-07-07T20:21:44","slug":"q1-2025-office-market-report","status":"publish","type":"post","link":"https:\/\/www.lee-associates.com\/northwest\/2025\/04\/21\/q1-2025-office-market-report\/","title":{"rendered":"Q1 2025 Office Market Report"},"content":{"rendered":"
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\n\t\t\t\t\t\tOFFICE MARKET OVERVIEW<\/strong>\t\t\t\t\t\t<\/h3>\n\t\t\t\t\t\t<\/div>\n<\/div><\/div><\/div>
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Seattle\u2019s office market showed signs of cautious momentum in Q1 2025, with increased leasing led by WeWork\u2019s 133,059 SF renewal in Bellevue and a wave of mid-sized deals across South Lake Union and the Eastside. Downtown Seattle vacancy approached 28%, but demand for high-quality space remains\u00a0 steady. Submarkets like Kirkland and Lake Union continue to outperform the broader region. Investment activity remains slow, with limited trades and\u00a0 ongoing pricing uncertainty. However, return-to-office momentum is growing as companies like Amazon and eBay double down on in-office mandates. If demand holds, 2025 could mark a turning point.<\/p>\n<\/div>\n<\/div><\/div><\/div>

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\n\t\t\t\t\t\t\t\t\t\t\t\t\t\n\t\t\t\t\t\t\t\tDownload Market Report to View More Details<\/a>\t\t\t\t\t\t<\/h4>\n\t\t\t\t\t\t<\/div>\n<\/div><\/div><\/div><\/div><\/div>
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MARKET INDICATORS<\/th>\nQ1 2025<\/strong><\/td>\nQ4 2024<\/strong><\/td>\nQ3 2024<\/strong><\/td>\nQ2 2024<\/strong><\/td>\nQ1 2024<\/strong><\/td>\n<\/tr>\n<\/thead>\n
\u2191 12 Mo. Net Absorption (SF)<\/td>\n(98,114)<\/td>\n(1,108,479)<\/td>\n(2,699,189)<\/td>\n(3,377,793)<\/td>\n(4,148,375)<\/td>\n<\/tr>\n
\u2191\u00a0 Vacancy Rate (%)<\/td>\n16.20%<\/td>\n15.81%<\/td>\n15.71%<\/td>\n15.40%<\/td>\n15.19%<\/td>\n<\/tr>\n
\u2191\u00a0 Avg FS Asking Rate PSF<\/td>\n$37.28<\/td>\n$36.87<\/td>\n$36.85<\/td>\n$36.84<\/td>\n$36.77<\/td>\n<\/tr>\n
\u2191\u00a0 Sale Price PSF<\/td>\n$379.00<\/td>\n$374.92<\/td>\n$383.25<\/td>\n$380.54<\/td>\n$391.97<\/td>\n<\/tr>\n
\u2193\u00a0 Cap Rate (%)<\/td>\n7.50%<\/td>\n7.66%<\/td>\n7.57%<\/td>\n7.48%<\/td>\n7.29%<\/td>\n<\/tr>\n
\u2191\u00a0 Under Construction (SF)<\/td>\n5,796,633<\/td>\n5,438,739<\/td>\n5,682,088<\/td>\n6,347,748<\/td>\n6,926,853<\/td>\n<\/tr>\n
\u2193\u00a0 Inventory (SF)<\/td>\n236,868,599<\/td>\n238,161,997<\/td>\n237,918,648<\/td>\n237,252,988<\/td>\n236,656,518<\/td>\n<\/tr>\n<\/tbody>\n<\/table>\n

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\n\t\t\t\n\t\t\n\t\t\t\n\t\t\tVIEW LOCAL MARKET REPORTS\t\t<\/span>\n\t\t\t<\/a>\n\t<\/div>\n<\/div><\/div>
\n\t\t\t\n\t\t\n\t\t\t\n\t\t\tVIEW NATIONAL MARKET REPORTS\t\t<\/span>\n\t\t\t<\/a>\n\t<\/div>\n<\/div><\/div><\/div><\/div>
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<\/div><\/div><\/div>","protected":false},"excerpt":{"rendered":"

Seattle\u2019s office market showed signs of cautious momentum in Q1 2025, with increased leasing led by WeWork\u2019s 133,059 SF renewal in Bellevue and a wave of mid-sized deals across South Lake Union and the Eastside. Downtown Seattle vacancy approached 28%, but demand for high-quality space remains\u00a0 steady. Submarkets like Kirkland and Lake Union continue to outperform the broader region. Investment activity remains slow, with limited trades and\u00a0 ongoing pricing uncertainty. However, return-to-office momentum is growing…<\/p>\n","protected":false},"author":244,"featured_media":7163,"comment_status":"closed","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[1136,1085],"tags":[1137,1148,1129,1143],"class_list":["post-7162","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-market-report","category-office","tag-market-report","tag-mccallum-mead","tag-office","tag-office-market-report"],"yoast_head":"\nQ1 2025 Office Market Report - Lee & Associates Pacific Northwest<\/title>\n<meta name=\"robots\" content=\"index, follow, max-snippet:-1, max-image-preview:large, max-video-preview:-1\" \/>\n<link rel=\"canonical\" href=\"https:\/\/www.lee-associates.com\/northwest\/2025\/04\/21\/q1-2025-office-market-report\/\" \/>\n<meta property=\"og:locale\" content=\"en_US\" \/>\n<meta property=\"og:type\" content=\"article\" \/>\n<meta property=\"og:title\" content=\"Q1 2025 Office Market Report\" \/>\n<meta property=\"og:description\" content=\"Seattle\u2019s office market showed signs of cautious momentum in Q1 2025, with increased leasing led by WeWork\u2019s 133,059 SF renewal in Bellevue and a wave of mid-sized deals across South Lake Union and the Eastside. Downtown Seattle vacancy approached 28%, but demand for high-quality space remains\u00a0 steady. Submarkets like Kirkland and Lake Union continue to outperform the broader region. Investment activity remains slow, with limited trades and\u00a0 ongoing pricing uncertainty. 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