Seattle’s office market is showing signs of life. It has yet to materially impact vacancy, but leasing activity is picking up. Pokémon signed a lease for 16 floors in The Eight, an under-construction tower in the Bellevue CBD. This is the largest lease in the market in three years, and the largest in Skanska’s history. There were three office sales this quarter that exceeded $30 million, all of which were larger than any in 2023. These transactions are emblematic of the type of sales that are driving investment activity, with two being owner-user acquisitions and the third involving a loan assumption. While still muted, 2024 sales volume is on pace to far surpass 2023, which should be amplified if interest rate cuts occur in the second half