Current Market Conditions for Commercial Real Estate

Office Space Distribution by Class

At the beginning of Q1 of 2023, the Pioneer Square District had a total inventory of approximately 5.5 million square feet of office space, while in the Downtown/DSA Service area, there was 84.6 million square feet. About half of the office space in the Pioneer Square District is classified as Class A, followed by Class B (32%), and C (19%). As the core office district of the region, the Downtown/ DSA Service Area has a higher share of Class A space and a smaller share of Class C office space compared to Pioneer Square. Office inventory in the Pioneer Square District is concentrated among a few large Class A office buildings, while Class B and Class C office space is distributed across multiple smaller buildings (Exhibit 6).

Below is a short summary of the characteristics of each office class type:

Class A: office space is considered the highest quality and typically has the newest, most modern construction and amenities, and is located in the most desirable areas.

Class B: office space is generally considered to be of good quality and in good condition but may be slightly older or not located in the most desirable areas.

Class C: office space is considered the lowest quality, typically older, and may be in need of repairs or upgrades. These spaces are typically located in less desirable areas.