Puget Sound Office Market Sees Positive Absorption in Q1 2026

CBRE report shows 356,000 square feet of positive net absorption, signaling continued tenant demand

Apr. 16, 2026 at 7:38pm

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A minimalist studio still life photograph featuring a stack of office documents, a laptop, and a pen arranged elegantly on a clean, white background. The objects are made from polished materials and use dramatic lighting to represent abstract corporate strategy and market trends.The Puget Sound office market shows signs of stabilization, with positive absorption and incremental rent growth despite elevated vacancy.Seattle Today

The Puget Sound office market recorded a stronger start to 2026, with a recent CBRE report showing 356,000 square feet of positive net absorption in the first quarter. The result marked a quarter-over-quarter improvement, signaling that tenants continue to take space across the region despite elevated vacancy.

Why it matters

The Puget Sound office market, particularly the Eastside submarket, has seen continued interest from large technology companies like Uber and OpenAI, which have made significant new leasing commitments. This suggests that well-located assets are still able to attract sizable tenants even as the broader office sector recalibrates.

The details

The Eastside submarket remained the region's standout performer, with vacancy easing, availability tightening, and ongoing demand from large-block office users. Market-level statistics for the Puget Sound office sector point to modest but measurable improvement, with regional vacancy edging down to 28.3% in Q1 2026 and the overall market availability rate declining from 29.4% to 29.0%. Asking rents also moved slightly higher, with the overall average direct asking lease rate finishing Q1 2026 at $47.10 per square foot per year on a full-service gross basis.

  • In Q1 2026, the Puget Sound office market recorded 356,000 square feet of positive net absorption.
  • This marked a quarter-over-quarter improvement of 334,000 square feet from Q4 2025.

The players

CBRE

A global commercial real estate services and investment firm that provides a range of services to property owners, investors, and occupiers.

Uber Technologies, Inc.

A multinational ride-hailing company that has signed a long-term lease at Four106, a 490,000-square-foot office tower in Bellevue's core.

OpenAI

An artificial intelligence research company that has expanded its Bellevue presence by adding 223,000 square feet at City Center Plaza.

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The takeaway

The Puget Sound office market, particularly the Eastside submarket, is showing signs of gradual improvement, with positive absorption, a small decline in vacancy, and incremental rent growth. This suggests that the region's office sector is stabilizing, even as it continues to recalibrate in the face of broader market shifts.