Greater Seattle sublease vacancy was reported at 2.0 million square feet (msf) in Q1 2022, a year-over-year decline of 1.79 msf, one of the largest declines in the U.S. The total has steadily decreased since its peak of 4.3 msf, reached in Q1 2021. Additionally, sublease availability declined 347,000 sf from Q4 2021 to Q1 2022.
While some of that space was withdrawn from the market, half of it (169,716 sf) was subleased, accounting for 16.9% of the 1,005,066 sf of leasing activity. This follows the recurring trend of more sublease space disappearing than being added over the last several quarters.
Sublease availability accounts for nearly 22% of the total availability in the Seattle market. Nearly 88% of available sublease space is in the Seattle CBD, however nationally the share of sublease space has decreased in the CBD markets from 42% in Q1 2021 to 40% in Q2 2022, indicating a deceleration of vacant sublease space being added in the CBD markets.
