Rents see some decline after two years of consecutive growth
In the third quarter of 2020, the overall average office rent was $37.91 per square foot (psf) in the Seattle market, reflecting decreases of 1.3% over the last year and 4.6% over the quarter. Rents ranged from a low of $25.35 psf in Tacoma to a high of $43.72 psf in Downtown Seattle. Class A rents decreased by 3.0% year over year and by 5.3% over the quarter, now standing at $45.71 psf. Similar declines were seen in the Central Business District (CBD) as rents decreased by 3.8%, to $42.99 psf year over year, while suburban rents increased 7.6%, to $31.20 psf. Significant sublease additions likely contributed to the overall decline and rents will face additional downward pressure over the coming quarters as tenant options, particularly those in lower-priced space, grow.