Seattle office market rents remained flat in Q1 but projected to trend upwards
Class A asking rents were relatively flat to start 2021, only increasing by 100 basis points (bps) from last quarter. Overall rents also remained unchanged. All submarkets experienced rate fluctuations smaller than 1%, aside from the Bellevue Central Business District (CBD) where rates increased by 2.1%. This is a sign the market is picking up again after rates fell 5% year-over-year. Rates will undoubtedly continue increasing, prompting tenants to secure long term leases to lock in today’s lower pricing. Landlords continue to be accommodating as concessions steadily increased, rising 29% from a year ago. This trend isn’t likely to last as nearing economic recovery will bring increased competition and higher premiums for office space.