Seattle office vacancy rates soar as demand plummets

In a recent government meeting, officials discussed the ongoing trends in office occupancy and vacancy rates, revealing a mixed outlook for the Seattle area. Despite some improvements in employee presence in neighborhoods like South Lake Union and Belltown, the Central Business District has seen little change, with occupancy rates hovering around 50% since the beginning of 2023.

A report from a platform providing quarterly updates on office space demand highlighted that Seattle's current demand for office space is at just 47% of pre-pandemic levels, a decline from 47% last quarter. This trend reflects a broader reevaluation by companies regarding their office space needs, particularly as many jobs in Seattle can be performed remotely. The report noted that cities with a higher proportion of remote-capable jobs, such as Seattle and San Francisco, are experiencing lower demand for office space compared to other regions.

The meeting also addressed the implications of high office vacancy rates, which are expected to continue rising in Seattle. CoStar's forecasts indicate that expiring leases and a lack of renewals will contribute to this trend, negatively impacting local revenue streams, including business and occupation taxes. Officials expressed concern that the climbing vacancy rates could lead to a prolonged period of reduced demand for office space, affecting the overall economic landscape in the region.