As we enter 2025, renewed optimism is fueling momentum across the market.
Market confidence among both landlords and tenants continues to strengthen as we move further past the pandemic and the interest rate spikes of 2022. Three key trends are driving this positive shift in 2025:
- Companies are convicted in their Return-to-Office mandates, enabling long-term decision-making. This will drive increased lease activity, reducing market vacancies and improving overall metrics.
- As more employees return to office environments, foot traffic will rise, boosting confidence among retail tenants and leading to positive absorption of retail spaces in downtown markets.
- With improving office market conditions, landlords are regaining confidence, prompting increased investment in building image, amenities, and tenant acquisition.
South Puget Sound 4Q24 Insights
| Vacancy | 7.92% |
| Total SF | 43,634,498 |
| Vacant SF | 3,454,174 |
| Average Asking Rent PSF Full Service | $30.00 |
| Average Months to Lease | 4-8 Months |
| Average Sale Price PSF | $288 |
| Average Market Cap Rate | 8.80% |
| Average Months to Sale – Owner/User | 3-12 Months |
| Average Months to Sale – Stabilized | 3-12 Months |
The information in this update was composed by the Kidder Mathews healthcare and office brokerage team of Will Frame, Drew Frame, and Ryan Kershaw.
Data source: CoStar
About the Frame Team
As members of the Kidder Mathews Healthcare and Office groups, Will Frame, Drew Frame, and Ryan Kershaw are experts in healthcare and office services, specializing in landlord and tenant representation, as well as sales, including investment and owner/user. The team has completed over $243,000,000 in sales in the last 24 months and actively represent more than 7 million square feet of property. For more information, visit kmteamframe.com.
About Kidder Mathews
Kidder Mathews is the largest fully independent commercial real estate firm in the Western U.S., with over 900 professionals in 19 offices across Washington, Oregon, California, Idaho, Nevada, and Arizona. We offer a complete range of brokerage, appraisal, asset services, consulting, and debt & equity finance services for all property types. Kidder Mathews averages over $9 billion in transaction volume, manages more than 58 million square feet of space, and conducts 2,400 appraisal, consulting, and cost segregation assignments annually. For more information, visit kidder.com.
Read the full report at the link below.
Contact
Will Frame, Executive Vice President
Drew Frame, Senior Vice President
Ryan Kershaw, Investments Specialist
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