Most of this quarter’s market statistics precede, and therefore do not reflect, any unfolding market impact due to the spread of the coronavirus (COVID-19) in Washington State.
Of the 6.9 million sq. ft. of office product currently under construction, 60% of it is pre-leased.
Vacancy in Downtown Seattle remained low by historic standards, floating around 7.3% for the past 3 quarters despite new construction deliveries. Many previously signed leases took occupancy during Q1, resulting in a positive net absorption of 158,867 sq. ft.
The entire Eastside experienced only 9,205 sq. ft. of absorption in Q1 2020, attributed to several larger tenants vacating in the Redmond submarket. However, Redmond maintained a low vacancy rate of 4.9%, compared to the total Eastside vacancy rate of 7.2%.