Seattle’s downtown office market ended 2025 with vacancy at another record high, reaching 34.7% in Q4.
The latest numbers from commercial real estate firm CBRE underscore how hybrid work and shrinking office footprints continue to weigh on a tech-heavy market like Seattle. The vacancy rate is up about two percentage points from a year ago, and a fivefold increase from before the pandemic.
Downtown Seattle lost 257,879 square feet of occupied space in Q4, driven by tenant “rightsizing” and reductions in average space requirements, according to CBRE.
Tech companies are still boosting leasing activity in downtown. Impinj renewed and expanded into 73,638 square feet at 400 Fairview, while DAT Solutions (which acquired Seattle startup Outgo last year) and Docker both took sublease space at the Maritime Building along the waterfront — 51,777 and 33,757 square feet, respectively.
But the data shows how Seattle’s commercial real estate market continues to struggle amid remote work and broader pressures including tech layoffs and companies using AI to operate with leaner teams. CoStar reported in November that Seattle recorded the slowest rent growth among the nation’s largest markets over the past year.
Meanwhile, the Eastside is showing early signs of stabilization, fueled in part by Microsoft’s new leases in Redmond and Amazon’s continued buildout in downtown Bellevue. Both companies are enforcing return-to-office policies.
Several technology companies have signed new or expanded leases on the Eastside in recent years, including OpenAI, Snap, Anduril, Shopify, Snowflake, Walmart, and Chewy.
“Notably, a growing number of new-to-market entrants … are choosing the Eastside over Seattle, drawn by Bellevue’s modern office inventory, business friendly climate and skilled technology workforce,” Broderick Group wrote in a new report.
Despite the positive signals, Broderick cautioned that vacancy is unlikely to fall sharply in the near term. Downtown Bellevue’s vacancy rate stood at 25.4% at the end of Q4, up from 16.8% a year ago.
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