Negative net absorption, meanwhile, rose from 11,667 sf to 66,723 sf.

According to the CB Richard Ellis report, the fourth quarter in Downtown Seattle brought about "marginal increase in vacancy rates in nearly all submarkets and continued softness in asking lease rates." Average class-A asking lease rates plummeted from $27.21 to $25.76, which CB Richard Ellis researchers say is the lowest figure reported since first quarter 1998.

The Puget Sound office market as a whole is experiencing a rise in vacancy, as the overall rate increased from 15.72% to 16.12% in the fourth quarter. Nearly 12.9 million sf of office space was reported vacant in the region during the fourth quarter, which caused a drop in average asking lease rates. They decreased in the fourth quarter from $24.25 to $23.82, according to CB Richard Ellis' research.

There was, however, a positive region-wide net absorption of 340,157 sf reported, which CB Richard Ellis attributes to the delivery of the fully leased Daytona Building and the nearly leased Summit Building on the Eastside. The Eastside submarket actually experienced a barely perceptible decline in vacancy for the first time since first quarter 2000, as vacancy rates dipped ever so slightly from 16.69% to 16.49% in fourth quarter 2002.