{"id":8221,"date":"2026-01-26T14:15:51","date_gmt":"2026-01-26T22:15:51","guid":{"rendered":"https:\/\/www.lee-associates.com\/northwest\/?p=8221"},"modified":"2026-08-07T11:47:38","modified_gmt":"2026-08-07T18:47:38","slug":"q4-2025-office-market-report","status":"publish","type":"post","link":"https:\/\/www.lee-associates.com\/northwest\/2026\/01\/26\/q4-2025-office-market-report\/","title":{"rendered":"Q4 2025 Pacific Northwest 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 remained challenged through Q4 2025, with availability hovering near 17% and conditions firmly a tenant\u2019s market. Leasing volume in 2025 finished roughly in line with 2024 but remained nearly 30% below pre-pandemic levels, with average lease sizes down approximately 10%. Net absorption was negative by roughly 820,000 SF during the year, driven largely by major corporate consolidations rather than new supply. New construction had little impact on availability, as virtually all recent deliveries were pre-leased or owner-occupied, and no speculative office projects were underway. A notable trend on the Eastside has been the redevelopment of aging office assets into townhomes, gradually reducing future office inventory.<\/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>\nQ4 2025<\/th>\nQ3 2025<\/th>\nQ2 2025<\/th>\nQ1 2025<\/th>\nQ4 2024<\/strong><\/td>\n<\/tr>\n<\/thead>\n
\u2191 12 Mo. Net Absorption (Units)<\/td>\n793,841<\/td>\n2,158,452<\/td>\n935,892<\/td>\n98,114<\/td>\n1,108,479<\/td>\n<\/tr>\n
\u2193 Vacancy Rate (%)<\/td>\n16.90%<\/td>\n17.20%<\/td>\n17.10%<\/td>\n16.2%<\/td>\n15.81%<\/td>\n<\/tr>\n
\u2191 Asking Rent \/ Unit ($)<\/td>\n$38.11<\/td>\n$37.19<\/td>\n$36.51<\/td>\n$37.28<\/td>\n$36.87<\/td>\n<\/tr>\n
\u2193\u00a0 Sale Price \/ Unit<\/td>\n$397.25<\/td>\n$424.85<\/td>\n$500.44<\/td>\n$379.00<\/td>\n$374.92<\/td>\n<\/tr>\n
\u2193 Cap Rate (%)<\/td>\n7.70%<\/td>\n7.20%<\/td>\n6.30%<\/td>\n7.50%<\/td>\n7.66%<\/td>\n<\/tr>\n
\u2193 Under Construction (Units)<\/td>\n4,088,790<\/td>\n4,835,532<\/td>\n4,806,240<\/td>\n5,796,633<\/td>\n5,438,739<\/td>\n<\/tr>\n
\u2193 Inventory (Units)<\/td>\n236,562,695<\/td>\n237,094,384<\/td>\n234,943,243<\/td>\n236,868,599<\/td>\n238,161,997<\/td>\n<\/tr>\n<\/tbody>\n<\/table>\n<\/div>\n<\/div><\/div><\/div><\/div>
\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":"

The Puget Sound office market remained challenged through Q4 2025, with availability hovering near 17% and conditions firmly a tenant\u2019s market. Leasing volume in 2025 finished roughly in line with 2024 but remained nearly 30% below pre-pandemic levels, with average lease sizes down approximately 10%. Net absorption was negative by roughly 820,000 SF during the year, driven largely by major corporate consolidations rather than new supply. New construction had little impact on availability, as virtually…<\/p>\n","protected":false},"author":249,"featured_media":8223,"comment_status":"closed","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[1136,1085],"tags":[1148],"class_list":["post-8221","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-market-report","category-office","tag-mccallum-mead"],"yoast_head":"\nQ4 2025 Pacific Northwest 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\/2026\/01\/26\/q4-2025-office-market-report\/\" \/>\n<meta property=\"og:locale\" content=\"en_US\" \/>\n<meta property=\"og:type\" content=\"article\" \/>\n<meta property=\"og:title\" content=\"Q4 2025 Pacific Northwest Office Market Report\" \/>\n<meta property=\"og:description\" content=\"The Puget Sound office market remained challenged through Q4 2025, with availability hovering near 17% and conditions firmly a tenant\u2019s market. 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