Seattle\u2019s office market remained under pressure through August, with elevated vacancy and limited investment activity weighing on its fundamentals, according to Yardi Matrix data. The metro\u2019s vacancy rate was the second-highest among major U.S. markets, while listing rates barely surpassed the national figure. At the same time, the development pipeline remained limited outside owner-occupied projects, with less than 0.1 percent of inventory under construction on a speculative basis.<\/p>\n\n\n\n
On the policy side, Seattle moved from approving a conversion incentive to putting it into practice. Rules that took effect in February allow owners to defer sales and use taxes on construction costs when converting underused commercial space into multifamily housing. Eligible projects must create at least four homes and reserve at least 10 percent of the units for households earning no more than 80 percent of the area median income. <\/p>\n\n\n\n