Seattle’s office market continued its correction in mid-2025, with mounting vacancy, subdued leasing activity, and strategic tenant relocations reflecting a sector still working through a prolonged imbalance between supply and demand. According to a recent leasing report from Flinn Ferguson Cresa, the vacancy rate is approaching 30 percent citywide—an unprecedented peak following five consecutive years of negative net absorption. Since 2020, annual net absorption has remained firmly in the red, ranging from –1.6 million square feet in 2020 to –2.1 million square feet in 2024. Despite this demand shortfall, new supply has remained steady or only marginally negative, fueling the climb in vacancy from just 5 percent in 2019 to over 25 percent by 2023 and trending higher in 2025.

Analysts poi

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