The PNW Tech Sector is Booming — Here’s How Teams Are Rethinking Real Estate

Hybrid Work Is Reshaping Space Needs

Hybrid work is now the norm for most PNW tech companies. The region’s tech firms are embracing flexible schedules and return-to-office (RTO) policies in varying degrees. A 2024 Gallup survey reports 60% of employees prefer a hybrid model, 33% want to remain fully remote, and only 7% would choose full-time in-office work. Yet, executives continue to push for office attendance, citing better collaboration, culture, and productivity– highlighting the tension between worker preferences and leadership expectations.

Most tech companies have landed on hybrid arrangements, asking employees to come in only on specific days. As GeekWire highlights, there’s a wide range of approaches among major PNW employers. Amazon has taken a more office-centric stance, with CEO Andy Jassy stating he wants employees “in the office the way we were before COVID.” Meanwhile, Seattle-based Zillow Group has embraced full remote flexibility. “We committed to location flexibility… and we’re never going back,” said Corina Kolbe, Zillow’s VP of Talent Success. These differing strategies reflect the distinct cultures and priorities of each organization.

Nationally, Bevi reports in-office attendance has reached about 66% of pre-pandemic levels as of late 2024, and many Pacific Northwest employers report steadily rising office utilization as they nudge teams back on site.

Expansion vs. Downsizing

The shift to hybrid work and a wave of tech layoffs have led many companies to reevaluate their office footprints in recent years–as some cut back on space, others are in expansion mode.

CBRE data shows the tech sector accounted for 29 of the 100 biggest U.S. office leases in 2024, a big jump from just 11 in the prior year. Much of this activity came from companies betting on future growth (particularly in AI and cloud services) and realizing they may have overcorrected by shedding too much space earlier.

In Seattle, major players like Meta placed large blocks of space on the sublease market. However, in January 2025, Apple expanded its presence with a 193,000-square-foot lease of Meta’s former space—signaling a continued investment in in-person collaboration.

Downtown Portland has faced a similar reckoning: Colliers reports the metro’s overall office vacancy hit 24.4% by Q4 2024, and a staggering 34.7% in the Central Business District (CBD) after a year of tenant downsizings. Many high-rises in Portland’s urban core sit partly empty as companies consolidate or allow more remote work.

Despite these shifts, office demand in the Pacific Northwest appears to be stabilizing. Seattle’s metro-wide vacancy held steady at ~26% at the end of 2024 (after climbing for years). Importantly, sublease availability has started to retreat as more space gets re-occupied or pulled off the market – sublet space now makes up just ~13% of all vacant office space in Seattle, the lowest share in over five years.

Shifting Location Preferences in the PNW

One clear trend is tech companies shifting away from traditional urban cores in favor of secondary markets and suburbs. In the Seattle area, Bellevue has emerged as a top destination, with downtown vacancy hovering around 16%—about half that of Seattle’s urban core.

Despite new construction, Bellevue saw positive net absorption in 2024, while downtown Seattle continued to lose tenants. The appeal? Newer buildings, easier parking, a safer environment, and a “small town with big city resources” feel. Tech firms also cite Bellevue’s business-friendly climate and strong retail amenities as key factors in supporting hybrid work and attracting employees back to the office.

Portland’s tech scene is seeing a comparable shift. Downtown Portland has struggled with four consecutive years of negative absorption (more companies moving out than in), while suburban submarkets and neighboring cities are holding steadier. The Silicon Forest areas west of Portland (like Hillsboro and Beaverton) continue to attract semiconductor and software firms that prefer campus-style offices. Meanwhile, just across the Columbia River in Washington, Vancouver is becoming an unlikely office winner. Colliers reports Clark County’s office vacancy was only ~7–8% in late 2024, far below Portland’s 20+% vacancy. In fact, Vancouver saw two quarters of positive absorption to end 2024 – a sign that companies (or remote workers) are snapping up space in this smaller market even as downtown Portland offices sit empty. Some Portland-area companies have opted to open satellite offices in Vancouver, drawn by Washington State’s tax benefits and the influx of residents who moved there for affordability. This intra-regional migration – from city center to periphery – is reshaping where tech employees work.

The preference for secondary markets isn’t just about cost; it’s also about talent dispersion and quality of life. With hybrid work, many employees have relocated to smaller cities or suburban areas to gain more space or be closer to family. Tech employers are responding by planting offices in those locales. For example, startups in Seattle have noted they can hire remote talent and may not require all staff to commute to a central HQ daily. By having multiple smaller offices or “hubs” around the region – from Seattle to Bellevue, or Portland to Vancouver – companies can tap into broader pools of talent and offer workers flexibility on location. In the Pacific Northwest, this hub-and-spoke office model is gaining traction as an alternative to one giant centralized campus.

Embracing Flexible Leases and Space Options

With uncertainty still high, tech organizations are increasingly seeking flexible real estate arrangements. Many companies remain unsure how their space needs will evolve with hybrid work, so they’re avoiding long 10-year lease commitments. Instead, demand has risen sharply for flexible office spaces, such as co-working memberships, short-term suites, and easy expansion/contraction options. According to BisNow, tenant inquiries for flexible space now make up roughly 15% of all office leasing queries – a significant jump driven by hybrid work models. In fact, demand for flex offices is about 58% higher today than before the pandemic, as businesses look for agility in their footprints.

The Pacific Northwest is experiencing this firsthand. Co-working providers are expanding in response to the trend. For example, Industrious (a high-end co-working operator) is opening its fifth Seattle-area location in Spring 2025, adding nearly 19,000 sq. ft. of shared workspace in South Lake Union.

Beyond co-working, shorter lease terms and “blend-and-extend” deals are gaining popularity. Landlords across the PNW have become more amenable to flexible lease lengths, expansion options, and even rent abatements to accommodate cautious tech tenants. Some companies are negotiating 1–3 year lease extensions instead of long renewals, essentially keeping their options open. Others are leasing “spec suites,” which are pre-built small offices that can be rented on a plug-and-play basis, often on short notice. All these strategies point to a common goal: maintaining agility. Tech firms learned in the pandemic that needs can change quickly, so whether through co-working memberships or flexible conventional leases, they want the ability to scale up or down without excessive cost.

Navigating Your Next Move

The Pacific Northwest remains a vibrant tech hub – companies are still investing in offices here, albeit more strategically than before. To chart your path forward, consider the following takeaways:

1. Assess Your Workforce Model: Gauge how hybrid or remote your team will be. If most employees come in only a few days a week, you might downsize your space or adopt hot-desking, rather than maintaining excess empty offices. On the other hand, if you’re pushing for more in-person collaboration, ensure your space can actually accommodate a larger daily presence again.

2. Evaluate Location Options: Don’t limit your search to the traditional downtown core. Secondary markets and suburban hubs in the PNW offer quality space at lower cost – and may be closer to where your employees live. Many firms are finding value in places like Bellevue or Vancouver, WA, which boast lower vacancy and modern amenities. A well-chosen satellite office in a secondary city could boost employee happiness and retention.

3. Leverage Flexible Solutions: Uncertainty about the future is okay – you can plan for it. Consider flex leases, co-working spaces, or shorter-term agreements that give you room to adjust. The rise in flexible office demand means there are plenty of options, from co-working memberships to move-in-ready small offices. Using these can save cost and prevent being locked into space you might not need long-term.

4. Stay Informed on Market Trends: Keep an eye on local real estate data. Vacancy rates, rental pricing, and new sublease availabilities are shifting quickly in the PNW. By staying informed (through market reports or a trusted broker), you can time your moves or renegotiations advantageously and secure favorable terms while the market still favors tenants.

By approaching your space needs with an open mind and data-driven insight, you can find the right balance between in-person collaboration and flexible work freedom. The result will be an office footprint that supports your business goals in this new hybrid era, whether you choose a downtown tower, a suburban campus, or a little of both.