Seattle suburban office complexes are starting to see more leasing demand, as a new report from Cushman & Wakefield shows vacancy rates dropped to 17.3% in the fourth quarter, a decline of 470 basis points from the 22% rate a year ago. Meanwhile, absorption for the year was a positive 425,000 square feet, an exponential increase from the -5500 square feet in 2021.

Construction, which has been pretty-much nonexistent since 2020, will also see improvement in 2023. Over 350,000 square feet of office space is expected to deliver within the next few months. The opening of the Northgate link light rail station has also spurred interest in office development north of the downtown area.

Cushman & Wakefield says the suburban office market will continue to appeal to tenants searching for inexpensive options than those in downtown Seattle and on the Eastside. Rents are forecasted to stay flat, as landlords attempt to attract occupiers looking to consolidate, downsize or relocate.