The Puget Sound office market is showing signs of stabilization through the second quarter of 2026, with leasing activity surging to 3.4 million square feet year-to-date, a 62% increase from the 2.1 million square feet recorded during the same period in 2025.
According to a recent report by Cushman & Wakefield, overall vacancy ticked up modestly from 27.6% to 28.6% across the region. Absorption improved significantly from -2.41 million square feet in 2025 year-to-date to -386,368 square feet in 2026, signaling the market is approaching equilibrium.
“The first half of 2026 marked a meaningful turning point for the Puget Sound office market,” said Brian Cagayat, Research Manager, Pacific Northwest, Cushman & Wakefield. “The 62% year-over-year increase in leasing activity, combined with a sharp improvement in absorption, signals that occupiers are becoming more confident in making long-term real estate decisions.” The recovery was further reinforced by major lease transactions, including OpenAI’s 247,487-square-foot lease at City Center Plaza in Bellevue.
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