Seattle ranks in top 5 markets for office vacancies

SEATTLE - Seattle's office market continues to face challenges into the new year, with vacancy rates placing it among the highest in the nation.

According to a recent report, the city's vacancy rate reached 26.4% in January, ranking it among the top five U.S. markets with the highest vacancy rates.

By the numbers:

This increase in vacancies highlights ongoing struggles in major Western office markets. The Bay Area and San Francisco also reported high vacancy rates, with San Francisco leading the nation at 29.3%.

Despite these challenges, some cities in nearby states are faring better. Los Angeles, for instance, recorded the lowest vacancy rate in the West at 16.4%, one of the lowest nationally. Meanwhile, Phoenix experienced a 3.2% year-over-year increase in asking office rents in January 2025.

Big picture view:

Nationally, the office sector continues to face difficulties, with the overall vacancy rate standing at 19.7% in January, up 180 points year-over-year.

The national average listing rate rose to $33.38 per square foot, a 5.8% increase from the previous year, amid rising vacancies and discounted sales.

Additionally, 44.1 million square feet of office space were delivered nationally, marking the fourth consecutive year of year-over-year decline.

The Source: Information for this report comes from a CommercialEdge report.