Seattle’s downtown office market ended 2025 with historically high vacancy rates, but recent data suggests the pace of increase is slowing.
According to reports from Cushman & Wakefield and CBRE Group Inc., downtown vacancy reached about 35 percent in the fourth quarter of 2025. Cushman & Wakefield reported a 35.6 percent rate, up 3.3 percent from 2024, while CBRE recorded 34.7 percent. The rise has been attributed largely to technology sector layoffs and companies downsizing office footprints, resulting in millions of square feet of vacated space.
Several major employers announced workforce reductions, including Amazon, Expedia Group, and Meta.
Despite elevated vacancies, there were signs of improvement late in the year. CBRE reported positive net absorption in the fourth quarter, marking the first quarterly gain in more than three years. Average asking rents increased 1.3 percent year over year to $47.62 per square foot. Class A rates across the Puget Sound region remained relatively stable at $51.35 per square foot.
Business leaders, including the Downtown Seattle Association and the Seattle Metropolitan Chamber of Commerce, noted that while challenges remain, renewed leasing activity and a slowing rise in vacancies may signal the market is approaching a turning point.
For retailers, downtown recovery efforts and continued employer engagement will be key factors to watch.
