Downtown Seattle Hits 37% Office Vacancy as $15 Billion Value Collapse Deepens
Updated
Updated · seattlered.com · Jul 7
Downtown Seattle Hits 37% Office Vacancy as $15 Billion Value Collapse Deepens
2 articles · Updated · seattlered.com · Jul 7
Summary
Nearly 37% of downtown Seattle office space now sits empty—the highest rate among major U.S. markets—and even a return to prepandemic demand would take about eight years to absorb it.
Since 2020, downtown office properties have lost $15 billion in value, a 46% drop, cutting annual property-tax revenue by $128 million, according to King County assessor data.
The slump has left towers such as the 44-floor U.S. Bank Center nearly half empty and pushed developer Martin Selig into defaults on major parts of his portfolio.
Employers and local business groups tie the collapse to roughly $1 billion in new city employer taxes, a 9.9% income tax, anti-business rhetoric and public-safety concerns, while companies shift to Bellevue, where vacancy is about 25%.
The tax hit does not disappear: lower tower values shift more burden onto homeowners, renters and small businesses as Seattle debates responses including a possible vacancy tax.