Office owners in Seattle are getting some reprieve. In May, the sublease space in Downtown Seattle had a net reduction of nearly 100,000 square feet. This was the first time since January that the market had a net reduction since January, according to research from Colliers International. The Eastside market also saw a contraction with sublease space down more than 53,000 square feet.

While the sublease space declined in May, the market is still significantly higher than at the start of the pandemic. Seattle has a total sublease supply of 4.3 million square feet, while the Eastside market has a total market supply of 1.7 million square feet. Since the start of the pandemic through May, the sublease supply in Seattle has increased 3.2 million square feet, while the Eastside market has gained 1.5 million square feet since the start of the pandemic. Thanks to the contraction in May, the sublease supply represents 5.4% and 5% of the total inventory.

The good news: the May contraction seems to be a trend. In June, more than 160,000 square feet of sublease space has come off of the market, thanks to a number of leases. The Colliers report recognizes this as a sign of increasing office demand following vaccine distribution. On the Eastside, there is leasing traction for more than 335,000 square feet in the coming months. The majority of the available sublease space in Seattle is in the Downtown area, while on the Eastside, Bellevue holds the majority of the sublease space.

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Kelsi Maree Borland

Kelsi Maree Borland is a freelance journalist and magazine writer based in Los Angeles, California. For more than 5 years, she has extensively reported on the commercial real estate industry, covering major deals across all commercial asset classes, investment strategy and capital markets trends, market commentary, economic trends and new technologies disrupting and revolutionizing the industry. Her work appears daily on GlobeSt.com and regularly in Real Estate Forum Magazine. As a magazine writer, she covers lifestyle and travel trends. Her work has appeared in Angeleno, Los Angeles Magazine, Travel and Leisure and more.