Bellevue’s office market is showing clearer signs of stabilization in early 2026, with steady demand, fewer large spaces available, and a shifting mix of tenants reshaping the landscape, according to the Broderick Group’s Q1 report.
The market’s current momentum follows a strong close to 2025, highlighted by OpenAI’s 250,000-square-foot expansion at City Center Plaza. While leasing activity slowed somewhat in the first quarter, several large deals in Downtown Bellevue are close to being finalized—an indication that demand has not disappeared, but is instead moving through the pipeline more gradually.
One of the most important changes underway is who is leasing space. Bellevue was once heavily reliant on a small group of major employers, including Microsoft and Amazon. Today, a growing number of technology and artificial intelligence companies, many of which had little or no presence on the Eastside before 2020, are entering the market or expanding. This shift is helping to create a more balanced and resilient office market, with demand coming from a wider range of companies rather than a few dominant players.
At the same time, the supply of large office spaces, especially high-quality, move-in-ready floors in top-tier buildings, is quietly decreasing. Since mid-2024, the number of available full-floor options has dropped by about 15%. For companies searching for large blocks of space, that means fewer choices, particularly in premium buildings with views.
That tightening supply is beginning to influence how tenants search for space. Companies that may have previously focused only on top-tier buildings are now considering a broader mix of options, including lower-floor spaces, non-trophy buildings in Downtown Bellevue, and even high-end suburban properties.
Another key factor shaping the market is the lack of new construction. For the first time in a decade, no new office buildings are expected to be delivered on the Eastside in 2026.
Instead, activity is centered on existing projects, where more than 2.3 million square feet of space is being built out for future tenants. Major developments like The Artise, Bellevue 600, West Main Phase II, and The Spring District are all in various stages of tenant improvements, with timelines stretching into 2026 and 2027.
Vacancy in Downtown Bellevue remained relatively stable in the first quarter, with slight increases largely tied to space that will become available in the future, not immediately. This distinction is important: while availability may appear elevated on paper, much of it is not yet competing for tenants today.
Looking ahead, vacancy is expected to drop below 20% within the next year. With limited lease expirations through 2027 and no new supply coming online, many indicators suggest the market has already reached its peak vacancy and is now entering the early stages of recovery.
Leasing activity is also being driven by a healthy mix of companies entering the market and existing tenants expanding, rather than simply relocating. This type of demand contributes to real occupancy gains and signals a more sustainable recovery.
Overall, Bellevue’s office market is becoming more balanced and less dependent on any single industry or employer. With demand holding steady, the Eastside is positioning itself for a more stable next phase.
