• Uncertainty in the market and limited price discovery increased demand for flexibility by office users in Q4 2020. Tenants and landlords opted for shorter-term leases and renewals while they wait for business conditions to return.

 

  • The Eastside has fared better than other Puget Sound office markets. The vacancy rate for the Eastside increased 114 bps to 8.9%, and asking rates remained stable.

 

  • Downtown Seattle vacancy continued to rise, reaching a 5-year high of 12.0%, while absorption reached decade lows of negative 586,202 sq. ft.

 

  • Despite dormant leasing, capital markets activity picked up in Q4; in total, six deals over $100 million closed this quarter.