Despite the turbulence surrounding office markets, companies quickly shifted to adapt to the crisis. A recent report from CBRE’s Labor Analytics division noted that the three most resilient industries in the current crisis were government, healthcare and technology, which combined occupy over 41 million sq. ft. of office footprint in the Puget Sound region.
During Q2, an abundance of sublease space hit the market, up 22% from last quarter as companies re-assessed their needs. For the first time in over a decade, Downtown Seattle experienced negative net absorption of 284,644 sq. ft.
After touring activity was halted, the Eastside saw a steep drop-off in tenants that were pursuing space. Still, the market remains strong for the moment; vacancy dropped 7 bps, remaining at 7.0% - all-time market low.