Seattle’s office market just landed another unwanted distinction. The city has the second-highest office vacancy rate among major U.S. markets, trailing only San Francisco, according to the latest national office report from CommercialCafe.
The vacancy rate in Seattle sits at 26.6%, well above the national average of 18.5% and higher than regional peers like Los Angeles (14.4%), Phoenix (17.8%), and Denver (approximately 23%). Downtown Seattle is even grimmer, with vacancy rates nearing or exceeding 35% in some reports, and certain submarkets like Pioneer Square topping 50%.
The grim numbers arrive as Mayor-elect Katie Wilson prepares to take office on January 1, 2026. Wilson, who narrowly defeated incumbent Bruce Harrell in November, campaigned on a proposal for a “well-designed vacancy tax or fine” on empty commercial space to incentivize owners to fill it. Business groups have expressed concern that her progressive tax ideas could make the problem worse, not better, potentially accelerating the shift of jobs to suburbs like Bellevue…