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Despite High Vacancy, Seattle Leads in Office Development
While Seattle’s office market is struggling, developers are building more new office space in the city than nearly any other U.S. metro. In the Seattle area, 6.59 million square feet of office space is under construction — the third most in the country, reported the Puget Sound Business Journal.
Seattle certainly isn’t alone in feeling the downtown office slump. U.S. office vacancies have reached a record high, with an average of 19.6% of office space in major cities not leased as of fourth-quarter 2023, reported the Wall Street Journal. The office vacancy rate in Seattle rose 2% year-over-year, hitting 22.3% in November. Only Detroit, Houston and San Francisco posted higher rates.
In response, some developers are exploring new ways to utilize space. Cushman & Wakefield recently announced one of Seattle’s first office-to-residential conversions is inching closer to reality with the sale of Queen Anne Plaza. The four-story, 52,270-square-foot office building is slated for conversion into a multifamily property by Stream Real Estate.
