Seattle Office Occupancy Rates Have Plunged
Seattle now holds the lowest business office occupancy rate among 92 studied U.S. cities.
Updated on Sept. 30, 2026 in Remote Work
Live Poll
Do you feel the business environment in your local community is getting better or worse?
Seattle has recorded the lowest office occupancy rate among 92 U.S. cities, with downtown vacancy levels reaching 35.8 percent. A prominent local property, the Plaza 600 office building, recently sold for just $12 million.
Why it matters
The citys downtown business district experienced a loss of 13,000 jobs in 2025, contributing to a vacancy rate significantly higher than the 20 percent national average. Experts suggest it could take 16 years to fully refill the vacant commercial space in the area.
The Plaza 600 building sold for 87 percent less than its $97 million valuation from 2019. The citywide office vacancy rate currently stands at 32.7 percent.
The players
Cushman and Wakefield
This global commercial real estate services firm headquartered in Chicago conducted the research study on office vacancies.
Plaza 600
This downtown Seattle office building recently sold for $12 million after a significant drop in property value.
The details
The recent $12 million sale of the Plaza 600 building highlights a dramatic decline in commercial property values within downtown Seattle. This shift follows a year in which the district saw the loss of 13,000 jobs, further exacerbating the high vacancy rates compared to national peers.
Timeline
The valuation of the Plaza 600 building was $97 million in 2019.
Downtown Seattle lost 13,000 jobs during 2025.
Cushman and Wakefield released the relevant real estate report in September 2026.
Market Landscape
The 2026 Cushman and Wakefield commercial office market study establishes a national vacancy baseline that identifies Seattle as a significant outlier. This divergence reflects a localized economic shift that separates the Seattle commercial real estate market from more stable urban centers.
The sustained high vacancy rate may lead to reduced city tax revenue, potentially impacting local public services and infrastructure funding. Residents should monitor how city planners repurpose empty downtown office space, as this may change the character of central Seattle neighborhoods.
The takeaway
The extreme drop in valuation for major buildings like Plaza 600 signals a long-term challenge for Seattle's commercial real estate sector. Property owners and developers are facing a new reality where filling office space may require significant physical repurposing over the next 16 years.
Further reading
Learn more about the local commercial market trends on the Remote Work section page.
Live Poll
Do you feel the business environment in your local community is getting better or worse?
