{"id":7508,"date":"2025-07-22T10:43:57","date_gmt":"2025-07-22T17:43:57","guid":{"rendered":"https:\/\/www.lee-associates.com\/northwest\/?p=7508"},"modified":"2026-07-07T13:20:51","modified_gmt":"2026-07-07T20:20:51","slug":"q2-2025-office-market-report-2","status":"publish","type":"post","link":"https:\/\/www.lee-associates.com\/northwest\/2025\/07\/22\/q2-2025-office-market-report-2\/","title":{"rendered":"Q2 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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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.<\/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>\nQ2 2025<\/strong><\/td>\nQ1 2025<\/strong><\/td>\nQ4 2024<\/strong><\/td>\nQ3 2024<\/strong><\/td>\nQ2 2024<\/strong><\/td>\n<\/tr>\n<\/thead>\n
\u2193 12 Mo. Net Absorption (SF)<\/td>\n(935,892)<\/td>\n(98,114)<\/td>\n(1,108,479)<\/td>\n(2,699,189)<\/td>\n(3,377,793)<\/td>\n<\/tr>\n
\u2191\u00a0 Vacancy Rate (%)<\/td>\n17.10%<\/td>\n16.20%<\/td>\n15.81%<\/td>\n15.71%<\/td>\n15.40%<\/td>\n<\/tr>\n
\u2193 Avg FS Asking Rate PSF<\/td>\n$36.51<\/td>\n$37.28<\/td>\n$36.87<\/td>\n$36.85<\/td>\n$36.84<\/td>\n<\/tr>\n
\u2191\u00a0 Sale Price PSF<\/td>\n$500.44<\/td>\n$379.00<\/td>\n$374.92<\/td>\n$383.25<\/td>\n$380.54<\/td>\n<\/tr>\n
\u2193\u00a0 Cap Rate (%)<\/td>\n6.30%<\/td>\n7.50%<\/td>\n7.66%<\/td>\n7.57%<\/td>\n7.48%<\/td>\n<\/tr>\n
\u2193 Under Construction (SF)<\/td>\n4,806,240<\/td>\n5,796,633<\/td>\n5,438,739<\/td>\n5,682,088<\/td>\n6,347,748<\/td>\n<\/tr>\n
\u2193\u00a0 Inventory (SF)<\/td>\n234,943,243<\/td>\n236,868,599<\/td>\n238,161,997<\/td>\n237,918,648<\/td>\n237,252,988<\/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>
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<\/div><\/div><\/div>","protected":false},"excerpt":{"rendered":"

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…<\/p>\n","protected":false},"author":244,"featured_media":7510,"comment_status":"closed","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[1136,1085],"tags":[1097,1137,1129,1143],"class_list":["post-7508","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-market-report","category-office","tag-harrison-laird","tag-market-report","tag-office","tag-office-market-report"],"yoast_head":"\nQ2 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\/07\/22\/q2-2025-office-market-report-2\/\" \/>\n<meta property=\"og:locale\" content=\"en_US\" \/>\n<meta property=\"og:type\" content=\"article\" \/>\n<meta property=\"og:title\" content=\"Q2 2025 Office Market Report\" \/>\n<meta property=\"og:description\" content=\"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...\" \/>\n<meta property=\"og:url\" content=\"https:\/\/www.lee-associates.com\/northwest\/2025\/07\/22\/q2-2025-office-market-report-2\/\" \/>\n<meta property=\"og:site_name\" content=\"Lee & Associates Pacific Northwest\" \/>\n<meta property=\"article:publisher\" content=\"https:\/\/www.facebook.com\/nwleeassociates\/\" \/>\n<meta property=\"article:published_time\" content=\"2025-07-22T17:43:57+00:00\" \/>\n<meta property=\"article:modified_time\" content=\"2026-07-07T20:20:51+00:00\" \/>\n<meta property=\"og:image\" content=\"https:\/\/www.lee-associates.com\/northwest\/wp-content\/uploads\/sites\/74\/2025\/07\/Office-Q2-2025.png\" \/>\n\t<meta property=\"og:image:width\" content=\"924\" \/>\n\t<meta property=\"og:image:height\" content=\"627\" \/>\n\t<meta property=\"og:image:type\" content=\"image\/png\" \/>\n<meta name=\"author\" content=\"sthomson\" \/>\n<meta name=\"twitter:card\" content=\"summary_large_image\" \/>\n<meta name=\"twitter:creator\" content=\"@NWLeeAssociates\" \/>\n<meta name=\"twitter:site\" content=\"@NWLeeAssociates\" \/>\n<meta name=\"twitter:label1\" content=\"Written by\" \/>\n\t<meta name=\"twitter:data1\" content=\"sthomson\" \/>\n\t<meta name=\"twitter:label2\" content=\"Est. reading time\" \/>\n\t<meta name=\"twitter:data2\" content=\"2 minutes\" \/>\n<script type=\"application\/ld+json\" class=\"yoast-schema-graph\">{\"@context\":\"https:\\\/\\\/schema.org\",\"@graph\":[{\"@type\":\"Article\",\"@id\":\"https:\\\/\\\/www.lee-associates.com\\\/northwest\\\/2025\\\/07\\\/22\\\/q2-2025-office-market-report-2\\\/#article\",\"isPartOf\":{\"@id\":\"https:\\\/\\\/www.lee-associates.com\\\/northwest\\\/2025\\\/07\\\/22\\\/q2-2025-office-market-report-2\\\/\"},\"author\":{\"name\":\"sthomson\",\"@id\":\"https:\\\/\\\/www.lee-associates.com\\\/northwest\\\/#\\\/schema\\\/person\\\/931b1b7e88eab37109aec4c62a449a56\"},\"headline\":\"Q2 2025 Office Market Report\",\"datePublished\":\"2025-07-22T17:43:57+00:00\",\"dateModified\":\"2026-07-07T20:20:51+00:00\",\"mainEntityOfPage\":{\"@id\":\"https:\\\/\\\/www.lee-associates.com\\\/northwest\\\/2025\\\/07\\\/22\\\/q2-2025-office-market-report-2\\\/\"},\"wordCount\":455,\"publisher\":{\"@id\":\"https:\\\/\\\/www.lee-associates.com\\\/northwest\\\/#organization\"},\"image\":{\"@id\":\"https:\\\/\\\/www.lee-associates.com\\\/northwest\\\/2025\\\/07\\\/22\\\/q2-2025-office-market-report-2\\\/#primaryimage\"},\"thumbnailUrl\":\"https:\\\/\\\/www.lee-associates.com\\\/northwest\\\/wp-content\\\/uploads\\\/sites\\\/74\\\/2025\\\/07\\\/Office-Q2-2025.png\",\"keywords\":[\"harrison laird\",\"market report\",\"office\",\"office market report\"],\"articleSection\":[\"Market Report\",\"Office\"],\"inLanguage\":\"en-US\"},{\"@type\":\"WebPage\",\"@id\":\"https:\\\/\\\/www.lee-associates.com\\\/northwest\\\/2025\\\/07\\\/22\\\/q2-2025-office-market-report-2\\\/\",\"url\":\"https:\\\/\\\/www.lee-associates.com\\\/northwest\\\/2025\\\/07\\\/22\\\/q2-2025-office-market-report-2\\\/\",\"name\":\"Q2 2025 Office Market Report - 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