Puget Sound Ranks No. 9 in Share of the Largest 100 US Office Leases in 2024

The Seattle area ranked #9 and tied with five other markets. The region also claimed three of the largest U.S. office leases in 2024, according to a new report from CBRE. Nationally, tech companies gained leasing momentum amid growth in artificial intelligence.

Puget Sound’s three leases totaled 890,816 sq. ft. In each case, the big lease was signed by a tech company expanding its footprint. The last time the region ranked in the top 10 markets was in 2021, when it claimed five of the largest office leases totaling 1.5 million sq. ft.

Tech companies committed to 2.8 million sq. ft. in leases in the Seattle area in 2024, more than triple the next highest sector (financial services). Nationally, the tech industry accounted for 29 of the largest U.S. leases of 2024 up from just 11 in 2023. Tech’s activity across all leases larger than 10,000 sq. ft. topped all other sectors in Q4.

“Company office-attendance mandates drove a surge of tenant demand last year, leading many organizations to realize they overcorrected in downsizing their office space too much. Leasing by the tech industry returned in earnest last year with the growth of artificial intelligence, which we expect to gain more momentum this year,” said John R. Miller, executive managing director for the Pacific Northwest and market leader for the greater Seattle region. “Tech is at the start of a new growth cycle, and strong leasing activity from the sector is key to recovery of the office market.”

National Trends

Large office users signed bigger leases in 2024 compared to the previous year, indicating a potential shift to stabilization and expansion by office occupiers after several years of contraction due to hybrid work.

CBRE’s analysis of the 100 largest office leases revealed that their average size rose to 288,834 sq. ft. in 2024, an 8% increase from 2023. The average had been declining since 2020 except for an isolated increase in 2021.

More companies signing mega leases opted to stay put last year rather than relocate. Sixty-eight of the largest 100 leases were renewals, up from 58 in 2023 and 44 at the recent low point in 2021.

Two influences likely contributed to the rise in renewals. First, staying put is less expensive than relocating and outfitting and designing that new space.

Second, a slowdown in office construction in recent years has limited the availability of large blocks of high-quality office space in certain markets, making it harder and more expensive for companies to find better locations.

NYC, DC Lead in Share of Top Leases

On the market level, Manhattan led all markets by a wide margin for share of the largest 100 leases than other regions. The Seattle area tied with Houston, Philadelphia, Orange County, Los Angeles and Northern New Jersey.

Top 10 Cities by Share of Largest 100 Office Leases of 2024