The Q2 2024 Eastside Office Market Overview by Broderick Group reports significant activity in the Eastside office market, especially in Bellevue’s Central Business District, which continues to attract strong tenant demand. The report outlines key trends, vacancy rates, and rental fluctuations across the region.
Bellevue has seen notable lease transactions in the second quarter of 2024. Snowflake’s sublease of 327,000 square feet from Meta at Spring District Block 6 and an undisclosed tenant’s lease of 168,000 square feet at the former Microsoft-occupied Lincoln Square North are among the largest.
The Bellevue Central Business District is navigating a high vacancy rate, which stood at 19.9% at the end of Q2 2024. This increase is driven by notable vacancies, including 572,000 square feet at the former Microsoft-occupied City Center Plaza and the delivery of The Eight, a new development with 124,000 square feet still available. The overall Eastside vacancy rate, including both vacant and sublease space, peaked at 22.5%.
Suburban markets are beginning to recover, with a small increase in occupied office space totaling 13,000 square feet in Q2 2024, marking the first positive growth since 2022. Agreements like Verizon’s sublease of 33,000 square feet along the I-90 Corridor and other deals show improvement. However, most suburban areas still have high vacancy rates, with Kirkland being the lowest at 7.3%.
The Eastside Office Market Overview for Q2 shows that, despite challenges like high vacancy rates, there is a steady demand for well-equipped office spaces, especially from tech companies. According to Broderick Group’s report, this demand indicates that the market will keep attracting top companies to the Eastside.
