Rising vacancies signal market softening in Seattle/Puget Sound
Vacancy rates have increased from 5.7% to 8.9% over the past year, marking a significant rise of 320 basis points (bps). This upward trend has been ongoing since late 2022, following a period of gradual decline since the start of the pandemic. The increase is attributed to the current economic climate, including a 4.3% year-to-date rise in the Seattle area consumer price index, and shifts in consumer behavior. Significant deliveries over the past year have also contributed to the rise in vacancy. This quarter saw the delivery of 17819 Canyon Road E, a speculative project in the East Pierce County submarket, which added 753,000 square feet (sf) to the market. Large available spaces, such as World Distribution Services’ 304,000-sf sublease at 17612 E 50th Avenue, were added in Q2.