What Seattle’s Owner-Occupied Office Trend Could Mean for Boise Commercial Real Estate

For years, office users typically had two choices.

Lease space from a landlord or build a headquarters from the ground up.

Today, a growing number of companies are choosing a third option: buying office buildings for themselves.

A recent office market trend emerging in the Seattle region suggests that more businesses are taking advantage of lower office values to become property owners rather than tenants. While the story is centered on Puget Sound, it may offer valuable insight into how some Boise businesses could think about office space in the years ahead.

According to reporting by Elliott Krivenko of CoStar Analytics, occupancy in owner-occupied office buildings across the Seattle region has increased significantly since 2020, while traditional leased office space has experienced substantial occupancy losses. The original CoStar article can be found here: https://product.costar.com/home/news/944668880

The shift highlights an important change in how some companies are approaching their real estate strategy.

Lower Office Prices Are Creating New Opportunities

One of the most notable aspects of the Seattle office market is that some businesses are using current market conditions to acquire buildings they can control directly.

Instead of signing long-term leases, certain companies are purchasing office properties and becoming owner-users.

According to CoStar’s reporting:

• Owner-occupied office occupancy has increased by nearly 7 million square feet since 2020.
• Traditional leased office inventory has lost roughly 16 million square feet of occupancy.
• Owner-user acquisitions have become a much larger share of overall office sales activity.
• More than one-fifth of Seattle-area office inventory is now owner-occupied.

While office leasing remains below historical levels, ownership has become increasingly attractive for some organizations seeking greater control over occupancy costs and long-term real estate decisions.

Why Boise Businesses May Be Watching Closely

The Boise office market is very different from Seattle.

Vacancy rates are lower, office pricing has generally held up better, and Boise continues to benefit from population and business growth.

However, some of the same economic forces are beginning to influence office users throughout the country.

As interest rates stabilize and office values adjust in certain markets, owner-user opportunities may become more attractive.

For growing companies, purchasing an office building can offer several advantages:

• Greater control over occupancy costs
• Potential equity creation
• Long-term stability
• Ability to customize the property
• Protection against future rent increases

Many business owners spend years paying rent without building ownership value. When the right property becomes available, ownership can sometimes create a stronger long-term financial position.

The Office Market Is Becoming More Selective

Another lesson from Seattle is that office demand has not disappeared.

It has simply changed.

Companies are becoming more selective about location, building quality, amenities, and overall workplace experience.

Many businesses that continue using office space want:

• Newer buildings
• Better parking
• Modern layouts
• Improved technology infrastructure
• Locations that help attract employees

This trend is already visible in many Boise office submarkets.

Higher-quality buildings often outperform older inventory because tenants are concentrating demand into the best available spaces.

As a result, office performance is becoming increasingly property-specific rather than market-wide.

What This Means for Investors

For office investors, Seattle’s experience offers an important reminder.

Future office demand may come from multiple buyer groups, not just traditional tenants.

In some cases, businesses may represent potential buyers rather than lease prospects.

That could create new exit strategies for certain office properties, especially smaller buildings that fit owner-user requirements.

Buildings ranging from 5,000 to 30,000 square feet often attract interest from professional services firms, healthcare providers, engineering companies, technology firms, and other businesses seeking long-term occupancy solutions.

For investors, understanding owner-user demand may become increasingly important when evaluating office assets.

Local Insight

One of the biggest office stories of the next several years may not be leasing.

It may be ownership.

As office markets continue evolving, some companies will likely decide they would rather control their own real estate than remain tenants indefinitely.

In Boise commercial real estate, that could create opportunities for owner-user office sales, medical office acquisitions, and smaller headquarters buildings that appeal to growing local businesses.

Seattle’s office market may be larger and more volatile than Boise’s, but the underlying lesson is relevant: when values reset and opportunities emerge, smart businesses often rethink whether they should lease space or own it.

For some companies, the next office transaction may not be a lease renewal. It may be a purchase agreement.

Mike Gioioso (joy-OH-so) has for 16+ years been helping companies of all sizes buy, build, and lease perfect places for business in greater Boise, Idaho and beyond. www.streetsmartidaho.com mike@streetsmartidaho.com 208-209-9166

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