{"id":7892,"date":"2025-10-21T15:37:13","date_gmt":"2025-10-21T22:37:13","guid":{"rendered":"https:\/\/www.lee-associates.com\/northwest\/?p=7892"},"modified":"2026-07-07T13:19:45","modified_gmt":"2026-07-07T20:19:45","slug":"q3-2025-office-market-report-2-2","status":"publish","type":"post","link":"https:\/\/www.lee-associates.com\/northwest\/2025\/10\/21\/q3-2025-office-market-report-2-2\/","title":{"rendered":"Q3 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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The Puget Sound office market posted its strongest quarter of leasing activity since 2019, signaling renewed confidence among tenants even as vacancy held at 17.2%. Average asking rents rose to $40.33\/SF Full Service, while sales averaged $425\/SF with cap rates up to 7.2%. Notably, the sale of 15550 NE Turing Street was the largest stabilized office trade of the year, and the recent $77\/SF sale of 2601 Elliott Avenue could become the largest office-to-residential conversion in the Seattle market, underscoring how investors are pursuing both stability and adaptive reuse opportunities.<\/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>\nQ3 2025<\/strong><\/td>\nQ2 2025<\/strong><\/td>\nQ1 2025<\/strong><\/td>\nQ4 2024<\/strong><\/td>\nQ2 2024<\/strong><\/td>\n<\/tr>\n<\/thead>\n
\u2193\u00a0 12 Mo. Net Absorption (SF)<\/td>\n(2,158,452)<\/td>\n(935,892)<\/td>\n(98,114)<\/td>\n(1,108,479)<\/td>\n(3,377,793)<\/td>\n<\/tr>\n
\u2191\u00a0 Vacancy Rate (%)<\/td>\n17.20%<\/td>\n17.10%<\/td>\n16.20%<\/td>\n15.81%<\/td>\n15.40%<\/td>\n<\/tr>\n
\u2191\u00a0 Avg FS Asking Rate PSF<\/td>\n$37.19<\/td>\n$36.51<\/td>\n$37.28<\/td>\n$36.87<\/td>\n$36.84<\/td>\n<\/tr>\n
\u2191\u00a0 Sale Price PSF<\/td>\n$424.85<\/td>\n$500.44<\/td>\n$379.00<\/td>\n$374.92<\/td>\n$380.54<\/td>\n<\/tr>\n
\u2191\u00a0 Cap Rate (%)<\/td>\n7.20%<\/td>\n6.30%<\/td>\n7.50%<\/td>\n7.66%<\/td>\n7.48%<\/td>\n<\/tr>\n
\u2191\u00a0 Under Construction (SF)<\/td>\n4,835,532<\/td>\n4,806,240<\/td>\n5,796,633<\/td>\n5,438,739<\/td>\n6,347,748<\/td>\n<\/tr>\n
\u2191\u00a0 Inventory (SF)<\/td>\n237,094,384<\/td>\n234,943,243<\/td>\n236,868,599<\/td>\n238,161,997<\/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>
\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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\n\t\t\t\n\t\t\n\t\t\t\n\t\t\tCLICK FOR MORE DETAILS FROM THIS REPORT\t\t<\/span>\n\t\t\t<\/a>\n\t<\/div>\n<\/div><\/div><\/div>
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The Puget Sound office market posted its strongest quarter of leasing activity since 2019, signaling renewed confidence among tenants even as vacancy held at 17.2%. Average asking rents rose to $40.33\/SF Full Service, while sales averaged $425\/SF with cap rates up to 7.2%. Notably, the sale of 15550 NE Turing Street was the largest stabilized office trade of the year, and the recent $77\/SF sale of 2601 Elliott Avenue could become the largest office-to-residential conversion…<\/p>\n","protected":false},"author":249,"featured_media":7894,"comment_status":"closed","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[1136,1085],"tags":[1137,1129,1143,1145],"class_list":["post-7892","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-market-report","category-office","tag-market-report","tag-office","tag-office-market-report","tag-scotty-rowe"],"yoast_head":"\nQ3 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\/10\/21\/q3-2025-office-market-report-2-2\/\" \/>\n<meta property=\"og:locale\" content=\"en_US\" \/>\n<meta property=\"og:type\" content=\"article\" \/>\n<meta property=\"og:title\" content=\"Q3 2025 Office Market Report\" \/>\n<meta property=\"og:description\" content=\"The Puget Sound office market posted its strongest quarter of leasing activity since 2019, signaling renewed confidence among tenants even as vacancy held at 17.2%. Average asking rents rose to $40.33\/SF Full Service, while sales averaged $425\/SF with cap rates up to 7.2%. Notably, the sale of 15550 NE Turing Street was the largest stabilized office trade of the year, and the recent $77\/SF sale of 2601 Elliott Avenue could become the largest office-to-residential conversion...\" \/>\n<meta property=\"og:url\" content=\"https:\/\/www.lee-associates.com\/northwest\/2025\/10\/21\/q3-2025-office-market-report-2-2\/\" \/>\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=\"2025-10-21T22:37:13+00:00\" \/>\n<meta property=\"article:modified_time\" content=\"2026-07-07T20:19:45+00:00\" \/>\n<meta property=\"og:image\" content=\"https:\/\/www.lee-associates.com\/northwest\/wp-content\/uploads\/sites\/74\/2025\/10\/Office-Q3-2025-1.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=\"Lauren\" \/>\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=\"Lauren\" \/>\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\\\/10\\\/21\\\/q3-2025-office-market-report-2-2\\\/#article\",\"isPartOf\":{\"@id\":\"https:\\\/\\\/www.lee-associates.com\\\/northwest\\\/2025\\\/10\\\/21\\\/q3-2025-office-market-report-2-2\\\/\"},\"author\":{\"name\":\"Lauren\",\"@id\":\"https:\\\/\\\/www.lee-associates.com\\\/northwest\\\/#\\\/schema\\\/person\\\/49a26cb153c78869e1877651ac9e819a\"},\"headline\":\"Q3 2025 Office Market Report\",\"datePublished\":\"2025-10-21T22:37:13+00:00\",\"dateModified\":\"2026-07-07T20:19:45+00:00\",\"mainEntityOfPage\":{\"@id\":\"https:\\\/\\\/www.lee-associates.com\\\/northwest\\\/2025\\\/10\\\/21\\\/q3-2025-office-market-report-2-2\\\/\"},\"wordCount\":446,\"publisher\":{\"@id\":\"https:\\\/\\\/www.lee-associates.com\\\/northwest\\\/#organization\"},\"image\":{\"@id\":\"https:\\\/\\\/www.lee-associates.com\\\/northwest\\\/2025\\\/10\\\/21\\\/q3-2025-office-market-report-2-2\\\/#primaryimage\"},\"thumbnailUrl\":\"https:\\\/\\\/www.lee-associates.com\\\/northwest\\\/wp-content\\\/uploads\\\/sites\\\/74\\\/2025\\\/10\\\/Office-Q3-2025-1.png\",\"keywords\":[\"market report\",\"office\",\"office market report\",\"scotty rowe\"],\"articleSection\":[\"Market Report\",\"Office\"],\"inLanguage\":\"en-US\"},{\"@type\":\"WebPage\",\"@id\":\"https:\\\/\\\/www.lee-associates.com\\\/northwest\\\/2025\\\/10\\\/21\\\/q3-2025-office-market-report-2-2\\\/\",\"url\":\"https:\\\/\\\/www.lee-associates.com\\\/northwest\\\/2025\\\/10\\\/21\\\/q3-2025-office-market-report-2-2\\\/\",\"name\":\"Q3 2025 Office Market Report - 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