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Seattle and Eastside Office Sublease Trends July 2021

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SEATTLE
Just over 450,000 sq. ft. of sublease space has been removed from the Seattle market in the past three months with June accounting for 262,000 sq. ft. (58%) and July accounting for 96,000 sq. ft. (21%) of that number. More encouraging than the aggregate amount of space leaving the market in recent months, though, has been the increased velocity at which space has been leased. 85,000 sq. ft. was leased in June, and 62,000 sq. ft. was leased in July, both amounts substantially larger than the 21,000 sq. ft. monthly average that existed prior. The total amount of sublease space added to the market since March of 2020 now sits at 2.9 million sq. ft., well off the high of almost 3.4 million sq. ft. seen back in early 2021. Though the Delta variant presents an obstacle for this downward trend, it very well may be mitigated by a combination of large (>50,000 sq. ft.) sublease deals rumored to be signed throughout the rest of 2021 and a handful of new entrants to the market with even larger appetites aimed at Seattle. 

EASTSIDE
Demand for office space on the Eastside, driven almost entirely by tech tenants, boiled over in the past two months and removed over 230,000 sq. ft. from the sublease market. Half of that aggregate number was Amazon being reassigned 137,000 sq. ft. at Redmond Town Center, and another large portion came from the 67,000 sq. ft. of subleases taken at 112th @ 12th. Such activity helped reduce the total amount of sublease space available on the Eastside 15% since the start of April (when sublease space available was at its highest point), or from 1.73 million sq. ft. to 1.46 million sq. ft. In that same span, the Bellevue CBD dropped from 6.5% to 5.6% of inventory available for sublease and Redmond dropped from 6.5% to 3.7% of inventory available for sublease. Though most of the premium space previously available for sublease has now been accounted for, the multiple 20-50,000 sq. ft. requirements in the market should continue to eat away at what remains at a rapid pace through 2021 and into 2022. 


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Seattle and Eastside Office Sublease Trends July 2021

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Jacob Pavlik

Research Manager

Seattle

Jacob Pavlik joins the Colliers team after working in the Economic Development and Planning departments for the cities of Hillsboro, Oregon and Alexandria, Virginia, respectively.  At Colliers, he leads a team of researchers to  collect, analyze, and synthesize market data for Puget Sound and Portland. He loves the challenge of taking complex data and making it easily digestible for a wide audience. He assists brokers with research specific to their client's needs, including geovisualizatoin and micromarket analysis.

His authentic passion for commercial real estate is seen most clearly when Jacob explores his local urban ecosystem and travels to new cities around the world to see how they function and relate to each other. He likes to see the built environment adapt to the changing needs, desires, and behaviors of the people who populate it. These functions fit perfectly into Jacob's role as Research Manager, telling the story of how commercial real estate in the Pacific Northwest evolves over time.

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