The Seattle Commercial Real Estate Market

Key Takeaways

• Seattle's commercial real estate market is supported by tech giants like Amazon and Microsoft, a highly educated workforce (56% with bachelor's degrees or higher), and strong fundamentals despite recent market adjustments.
• The industrial market is experiencing a strategic recalibration with vacancy at 8.8% and limited new construction creating opportunities for long-term leasing positioning.
• Office vacancy remains elevated at 22.1%, but well-located Eastside properties with modern layouts continue to attract demand as the market shifts toward right-sizing rather than expansion.
• Retail vacancy is relatively lean at 5.3% by historical standards, with limited new inventory keeping landlords and tenants focused on quality locations.
• The multifamily sector is stabilizing with positive absorption of 11,075 units year-to-date and a cooling construction pipeline that suggests improving fundamentals ahead.

With its striking natural backdrop, entrepreneurial spirit, and reputation for innovation, Seattle is one of the most dynamic commercial real estate markets in the country. A city shaped by aerospace, technology, and global trade, it continues to attract attention from investors, tenants, and developers seeking long-term opportunity.

Crexi provides the tools and insights to navigate this high-demand metro with clarity and confidence. Whether you're sourcing deals in downtown Seattle or analyzing activity across Bellevue, Renton, Tacoma, or Kirkland, our platform supports every stage of the process from research to closing.

To date, Crexi has helped market over $7 trillion in commercial property value and facilitated more than $615 billion in closed transactions. As Seattle’s landscape continues to evolve, we’re proud to serve as the region’s fastest-growing online CRE marketplace, helping professionals identify the right opportunities in a competitive environment.

Seattle Commercial Real Estate Overview

Positioned between Puget Sound and the Cascades, Seattle has long been a gateway for global commerce and a launchpad for some of the world’s most influential companies. From its roots in maritime trade and aerospace to its current standing as a leader in cloud computing, biotech, and AI, Seattle thrives on reinvention - and that energy is reflected across its commercial real estate market.

The metro’s economic foundation is anchored by household names like Amazon, Microsoft, and Boeing, but it’s also sustained by a growing network of startups, research institutions, and advanced manufacturing hubs. Access to a highly educated workforce, top-tier infrastructure, and a strong venture capital presence continue to make the region a magnet for businesses of all sizes.

While broader economic trends have prompted a more measured pace of activity in recent quarters, the fundamentals in Seattle remain solid. For commercial real estate professionals, Seattle offers both challenge and opportunity: a competitive market with high expectations, but also one where thoughtful investments can deliver lasting returns. 

As the city continues to balance growth with livability, sustainability, and economic diversity, it is proving to be an excellent place to deploy capital and build connections that move deals forward.

Seattle Regional Context

Seattle’s growth isn’t confined to the city limits. As more people put down roots across the metro, the region’s blend of livability and economic opportunity continues to attract both residents and businesses. Surrounding counties like Pierce and Snohomish are gaining steady momentum, helping shape a more balanced and resilient market. Together, these dynamics set the stage for ongoing interest from investors and developers aiming to align with long-term trends.

• The population of the city of Seattle has surpassed 755,000, with  more than 4 million residents living within the Seattle-Tacome-Bellevue metro area.
• If Seattle continues at its current rate of growth - estimated at nearly 2.4% annually - its population is projected to exceed that of San Francisco by 2027.
• The Seattle MSA includes King, Pierce, and Snohomish Counties.
• The median age in the Seattle metro area is 37.8, a little less than the figure in the US, according to data from CensusReporter.org.
• Per capita income is $62,137, and median household income is $1110,744, both figures about 40% higher than those in the US.
• The cost of living in Seattle is about 43% higher than the national average, largely driven by high housing expenses. However, it still remains more affordable than other major technology hubs, such as San Francisco. 
• The city was honored with the 2025 All-America City Award, presented by the National Civic League. Other notable accolades include placing in the Top 10 Smart Cities in the U.S., and ranking #19 in the World’s Best Cities Report.

Seattle Job Market

Seattle’s economy has always had strong pillars in tech, aerospace, and global trade - but what’s keeping it moving forward is a growing mix of industries and a city that’s leaning into smart investment. Recent efforts by local leaders to cut red tape and boost small business support are helping open more doors for entrepreneurs and employers alike. 

At the same time, legacy companies like Amazon and Boeing continue to anchor the region, while new sectors like green energy and life sciences gain momentum. With a well-educated workforce and a steady stream of talent from local universities, Seattle remains a place where ideas turn into opportunity.

• The Gross Domestic Product (GDP) for the Seattle-Tacoma-Bellevue MSA is nearly $567 billion, growing by 29% since 2020.
• The unemployment rate in the Seattle metropolitan area is 5.1% as of November 2025.
• The Seattle job market is projected to add more than 146,000 new jobs by 2029, fueling optimism in the regional economy. 
• Key industry sectors in Seattle include aerospace, agriculture, construction and real estate, end-line manufacturing, information technology, and transportation and maritime.
• Globally recognized companies in Seattle include Amazon, Boeing Commercial Airplanes, Microsoft Corporation, Starbucks, Costco, Google, Nordstrom, REI, and Alaska Airlines.
• According to the Seattle Chamber of Commerce, 56% of residents hold a Bachelor’s degree or higher, solidifying the city as one of the most highly educated in the U.S.
• The University of Washington, Seattle University, and Seattle Pacific University offer a wide range of undergraduate, graduate, and professional programs to a diverse student body.
• WalletHub ranks Seattle as the 3rd best city for STEM jobs and among the top U.S. cities to find a job, based on criteria such as job opportunities, employment growth, and average monthly earnings.
• Seattle's transportation infrastructure includes major interstates I-5 and I-90, the Port of Seattle, and the Seattle-Tacoma International Airport (SEA), facilitating both local and international connectivity.

Seattle Industrial Market

Market overview (Cushman & Wakefield Q3 2025 Seattle Industrial Report) 

• Inventory: 266,421,826 SF
• Vacancy rate: 8.8%
• Net absorption: -728,194 SF (YTD)
• Deliveries: 3.1 million SF (YTD)
• Under construction: 4.7 million
• Key leases by tenant: Pepsi (598,400 SF), Confidential tenant (447,492 SF), Amazon (230,131 SF)
• Largest submarkets: Kent, South Seattle, Auburn, Tacoma

Crexi Insights

These are the most recent industrial lease and sales trends from Crexi Insights (as of January 2026):

For Lease (active)

• Asking rate/SqFt (median): $18 per year
• Median SqFt/listing: 5,188
• Days on market: 190
• Total listings on Crexi: 78 spaces

For Sale (active)

• Median asking price: $3 million
• Price/SqFt: $289
• Asking cap rate: 5.6%
• Days on market: 280
• Total listings on Crexi: 22

Sales Comps (past 12 months)

• Median sold price: $2.9 million
• Sold price/SqFt: $363
• Total sales volume: $315.4 million
• Median SqFt sold/transaction: 7,097
• Total SqFt sold: 894,900 
• Days on market (median): 940

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Seattle Office Market

After several years of change, the office market in Seattle is still finding its footing. Large tenants continue to reassess space needs, which has pushed vacancy higher, but it has also brought more flexibility and negotiation back into the market. 

Well-located buildings in established Eastside submarkets remain in demand, particularly those offering modern layouts and strong commuter access. With limited new construction underway, the focus has shifted from rapid expansion to right-sizing, setting the stage for a more measured and sustainable recovery.

Market overview (Cushman & Wakefield Q3 2025 Puget Sound Office Report)

• Inventory: 39,803,452 SF
• Vacancy rate: 22.1%
• Leasing activity: 1,606,872 SF (YTD)
• Net absorption: -1,839,140 SF (YTD)
• Under construction: 479,000 SF
• Key leases by tenant: Amazon (76,899 SF), Microsoft (44,792 SF), Suttell & Hammer, PS (27,191 SF)
• Submarkets with lowest vacancy: Bel-Red, Redmond, Kirkland
• Submarkets with highest rent: Kirkland, 405 Corridor, I-90 Corridor

Crexi Insights

For the most recent insights into the Seattle office market, Crexi Insights is your go-to resource. Here are the most recent office leasing trends, sale listings, and comparable data as of January 2026.

For Lease (active)

• Asking rate/SqFt (median): $27 per year
• Median SqFt/listing: 2,014 SF
• Days on market: 259
• Total listings on Crexi: 689 spaces

For Sale (active)

• Median asking price: $2.5 million
• Price/SqFt: $469 
• Asking cap rate: 5.4%
• Days on market: 280
• Total listings on Crexi: 33

Sales Comps (past 12 months)

• Median sold price: $1.7 million
• Sold price/SqFt: $431
• Total sales volume: $87.7 million
• Sold cap rate: 6.5%
• Median SqFt sold/transaction: 3,960 SF
• Days on market (median): 217

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Seattle Retail Market

The retail landscape in Seattle continues to balance evolving consumer habits with steady physical demand. Vacancy has edged up recently, but the market remains comparatively lean by historical standards, and new store openings have helped absorb space that’s come back to market. 

Rents have shown slower growth as retailers weigh expansion plans against national economic headwinds, but activity continues across community and neighborhood centers. With a limited pipeline of new inventory, landlords and tenants alike are focusing on quality locations and thoughtful leasing strategies.

Market overview (Cushman & Wakefield U.S. Shopping Center Reports Q3 2025)

• Inventory:   64,513,175 SF
• Vacancy rate: 5.3%
• Net absorption:  -181,242 SF (Q3 2025p)
• Deliveries: 34,000 SF
• Under construction: 203,666 SF (Q3 2025)
• Retail submarkets by county: King, Kitsap, Pierce, Snohomish, Thurston

Crexi Insights

Retail lease and sales trends from Crexi Insights (as of January 2026):

For Lease (active)

• Asking rate/SqFt (median): $30 per year
• Median SqFt/listing: 2,006 SF
• Days on market: 259
• Total listings on Crexi: 338 spaces

For Sale (active)

• Median asking price: $3.1 million
• Price/SqFt: $361
• Asking cap rate: 5.3%
• Days on market: 263
• Total listings on Crexi: 51

Sales Comps (past 12 months)

• Median sold price: $1.9 million
• Sold price/SqFt: $494
• Total sales volume: $378.2 million
• Sold cap rate: 6.5%
• Median SqFt sold/transaction: 5,040 SF
• Days on market (median): 186

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Seattle Multifamily Market

In Seattle, the multifamily market is adjusting to a new rhythm after several years of rapid growth and heavy deliveries. Vacancy remains elevated compared to pre-pandemic norms, but positive absorption and a cooling construction pipeline are starting to ease the pressure. 

Rent growth has slowed but remains stable, especially in core areas like King County. With fewer new units expected to come online in the near term, operators are cautiously optimistic about improving fundamentals going forward.

Market overview (Cushman & Wakefield Q3 2025 Seattle Multifamily Report)

• Total housing units: 1,734,427
• Multi-unit inventory: 409,802 units
• Vacancy rate: 7.6%
• Average asking rent: $2,093
• Absorption: 11,075 units (YTD)
• Units delivered: 10,589 (YTD)
• Under construction: 16,902 units
• Key sale transactions by property: Arrive Magnolia (337 units; $106.5 million), Vibe Apartments (329 units; $77 million), Pratt Park Apartments (248 units; $400.8 million)

Crexi Insights

Here are the most recent multifamily Insights from Crexi (as of January 2026):

For Sale (active)

• Median asking price: $2.6 million
• Price/SqFt: $379
• Price/Unit: $276,500
• Asking cap rate: 5.5%
• Days on market (median): 109
• Total listings on Crexi: 75

Sales Comps (past 12 months)

• Median sold price: $925,700
• Sold price/SqFt: $832
• Sold price/unit: $393,500
• Total sales volume: $3.1 billion
• Sold cap rate: 5.5%
• Total SqFt sold: 3.7 million
• Days on market (median): 156

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