Seattle Q4 2024 Office Market Review

Seattle’s office market remains in a period of transition, balancing prolonged high vacancies with early indicators of leasing stabilization. According to Flinn Ferguson Cresa’s Office Market Report, vacancy rates climbed to 27.2% in Q4 2024, with direct vacancy at 23.6% and sublease vacancy at 3.3%. 

Companies are rethinking their footprints, leading to a divergence in demand: well-located, high-amenity spaces continue to lease, while commodity office stock faces growing vacancies.  

Leasing Trends & Tenant Preferences 

Seattle’s flight-to-quality trend is accelerating. In Q4 2024, 549,000 SF of new leases were signed, a 9.6% year-over-year increase, but leasing volume is still below pre-pandemic levels. 

What Tenants Want:  

• Hybrid-friendly layouts: Open, adaptable offices with modular meeting spaces are preferred over traditional layouts. 

• Office amenities: Companies are seeking wellness-focused designs, collaborative zones, and hospitality-style features. 

  
  

Amazon’s five-day in-office mandate, effective January 2025, is expected to reshape broader corporate sentiment around return-to-office (RTO) policies in downtown Seattle. The policy could drive renewed leasing demand but has also been met with employee resistance. 

Vacancy Insights & Challenges 

According to Colliers’ office report, vacancy rates rose across all major submarkets: 

• Seattle CBD – 29.4% vacancy 

• Pioneer Square/Waterfront – 28.9% 

• Belltown/Denny Regrade – 34.2% 

This presents both challenges and opportunities for landlords. Class B and C buildings with outdated designs and fewer amenities are struggling the most, with some seeing vacancies of 40% or higher. Meanwhile, Class A and trophy spaces continue to outperform, with trophy-class vacancy at just 10.1%. 

What This Means: 

• More leverage in lease negotiations – Landlords are offering higher tenant improvement (TI) allowances, free rent periods, and flexible lease structures. 

• Flight-to-quality is an opportunity – If moving or upgrading, now is the time to secure better office space at a competitive rate. 

• Class B & C spaces may offer deep discounts – If high-end amenities are not a priority, tenants may find significant cost savings in these properties. 

Rents & Market Pricing 

Despite rising vacancies, asking rents have remained steady due to increased landlord concessions rather than direct rent cuts. JLL reports the average asking rent at $49.46 per SF, with Class A space at $54.69 per SF. 

What’s Available for Tenants? 

• 6–12 months of free rent on long-term leases 

• Generous tenant improvement (TI) allowances for build-outs 

• Flexible lease structuring to accommodate hybrid work models 

• For tenants exploring a new lease or renewal, now is an ideal time to lock in favorable terms before conditions shift. 

Investment Market & Future Outlook 

Seattle’s office sales volume surged to $1.3 billion in 2024, a huge jump from $323 million in 2023. However, many deals were distressed asset sales, showing that institutional investors remain cautious. 

Key Takeaways: 

• Leasing options remain strong, but high-quality spaces are going fast. 

• Landlords are prioritizing occupancy over rental rates, making this a great time to negotiate. 

• If office demand rises in 2025, available concessions may decrease. 

Final Thoughts 

Seattle’s office market is at a critical turning point, with tenant experience, flexibility, and amenities now shaping leasing decisions more than ever. For companies considering a move, upgrade, or renewal, 2025 offers a unique window to secure prime office space under tenant-favorable conditions.