Quick Answer: Snohomish County’s office market just posted its third straight quarter of positive net absorption, ending Q1 2026 at 10.7% vacancy with asking rents at $31.20 per square foot — a small but real signal that the office side of the Everett story is firming up while the housing side cools. The numbers come from Kidder Mathews’ Q1 2026 Seattle Office Market Report, and they matter because the Port of Everett’s Waterfront Place build-out is planning 447,500 square feet of office on top of an apartment market that just turned soft. Office is the harder leasing story right now. The Q1 numbers say it is starting to turn.

Snohomish County’s Office Vacancy Just Dropped to 10.7% — What the Q1 2026 Numbers Mean for Waterfront Place and Everett’s Build-Out

Most of the housing-market coverage in Everett right now is about the same story told three different ways: the rental market is down 2% year over year, the new-construction market closed exactly one home above list this month, and the condo market is actually outperforming single-family. Those are three pieces of one residential picture.

The office market is a separate picture. And Kidder Mathews — the commercial brokerage that publishes the most-cited Seattle Office Market Report — just released its Q1 2026 numbers for Snohomish County. The headline is unflashy and important: vacancy ended the quarter at 10.7%, asking rents nudged up to $31.20 PSF, and the county posted its third straight quarter of positive net absorption. None of those numbers will trend on social media. All of them will show up in the leasing decisions that determine whether the next phase of Waterfront Place is a building full of offices or a building waiting for tenants.

The Q1 2026 Numbers, Plain

From Kidder Mathews’ Q1 2026 Seattle Office Market Report, here is the Snohomish County row:

• Overall vacancy: 10.7% at the end of Q1 2026, down slightly from the prior quarter and a touch below the 10.8% rate at the close of Q1 2025.
• Net absorption: Positive 37,931 square feet — the third straight positive quarter. Net absorption is leasing brokers’ favorite single number because it captures whether more space got filled than emptied during the period.
• Total leasing activity: Slowed to 59,395 square feet during Q1 2026, including renewals.
• Asking rent: $31.20 per square foot, a 0.8% improvement on the prior quarter’s $30.96 PSF.

That is a market that is not setting records and is not falling apart. It is grinding up. For office, that is a normal story. For Snohomish County office in 2026, after a few years of soft national office demand, it is a meaningful story.

Why 10.7% Is the Right Number to Watch

Vacancy alone is a noisy number. A market can have 10% vacancy because nobody wants the space, or because half the inventory is old and the other half is brand new and leasing fast. What changes the read is the trend.

Snohomish County office vacancy ended Q1 2025 at 10.8%, ended Q4 2025 a hair higher, and ended Q1 2026 at 10.7%. That is a four-quarter window in which vacancy has effectively moved sideways with a slight downward bias. Pair that with three straight quarters of positive net absorption and a 0.8% bump in asking rents, and you have the soft outline of a market floor. Not a recovery. Not a boom. A floor.

That distinction matters for anyone watching Waterfront Place and the Millwright District. A floor is what you need to start signing leases on new product. A floor is what makes pre-leasing offices in a downtown waterfront development work as a financial pro forma.

What This Means for Waterfront Place’s 447,500 SF of Office

The Port of Everett’s master plan for Waterfront Place includes 447,500 square feet of office at full build-out, alongside the 660 housing units, the two hotels, and the 63,000 square feet of retail and restaurant space. The first major office product on the waterfront is the Millwright District Phase 2 office — covered earlier this month when we wrote about what 120,000 square feet of waterfront office space means for Everett.

The Q1 numbers are the leasing context for that 120,000 square feet. If county-wide office had ended Q1 at 13% with three straight quarters of negative absorption, the Millwright pre-leasing pitch would be a hard one. Tenants would have leverage, asking rents would be soft, and the calendar from groundbreaking to stabilized occupancy would be longer than the financing model assumed.

At 10.7% with a positive absorption trend and rents nudging up, the pitch is different. Waterfront-view office at $31-plus-PSF is a defensible play in a market where vacancy is not bleeding out. It does not guarantee anything. It just removes one of the legitimate reasons to be skeptical.

What This Means for Downtown Office

The other pressure point in Snohomish County office is the existing downtown Everett inventory — older Class B and Class C buildings along Colby, Hewitt, and Wetmore that have been competing with the move to remote and hybrid work for half a decade. Those buildings do not benefit from the same waterfront-view pitch.

What they do benefit from is the absorption trend. If the county is filling 38,000 square feet net per quarter, some of that is going into existing downtown space. A market with positive net absorption broadly is a market in which downtown landlords have a chance to lease, even if the asking rents are well below the $31.20 county average and the deals require concessions that would have been unthinkable in 2019. The signal here is permission to underwrite, not a green light to raise rents.

The Broader Puget Sound Comparison

Snohomish County’s 10.7% vacancy compares to the broader Seattle/Puget Sound regional office vacancy, which ended Q3 2025 at 22.7% per the same Kidder Mathews series. That gap — 12 percentage points between the county and the regional average — is the structural advantage Snohomish County has been quietly building. Office demand drains out of the urban core when work-from-home becomes permanent. It does not drain out of the suburban Class A market in the same way, especially in a corridor with Boeing’s commercial aerospace anchor, the Naval Station Everett anchor, and a residential population that does not commute south to Seattle.

The Waterfront Place office product is being designed to sit inside that gap. Class A finishes, water views, walking-distance restaurants, dedicated parking, and a corridor that has not been hollowed out by the urban-flight pattern that hit downtown Seattle. The Q1 2026 absorption number is a small piece of evidence that the gap is real and that the leasing thesis has a floor under it.

What to Watch in Q2

The next Kidder Mathews report will land in mid-July, capturing Q2 2026 absorption. Three things to watch:

1. Whether net absorption stays positive. A fourth straight positive quarter would convert the floor read into a recovery read.
2. Whether asking rents push past $31.50 PSF. That is the threshold above which Class A new product can be priced confidently.
3. Whether leasing activity recovers from the 59,395 SF Q1 figure. Q1 leasing was slow. Q2 is the test of whether decision-makers are sitting on the sidelines or actually backing out of the market.

What This Doesn’t Say

It does not say office is back. It does not say the rest of 2026 is a guaranteed recovery. It does not address the suburban-to-suburban moves that are powering most of the absorption (companies giving up old space for newer space — net-positive county-wide, net-zero or worse for individual landlords). It does not isolate Everett from Bothell, Lynnwood, or Mill Creek inside the county number. And it does not predict whether tariffs, interest rates, or the broader macroeconomic story will rewrite the leasing calendar.

What it does say, in the most boring possible language: the floor is holding, the absorption is positive, and the rents are nudging up. That is the leasing context the next phase of Waterfront Place is going to be pitched into. The Port has been building toward this moment for a decade. The Q1 numbers say the moment is plausible.

Frequently Asked Questions

What is the Snohomish County office vacancy rate in Q1 2026?

10.7% per Kidder Mathews’ Q1 2026 Seattle Office Market Report, a slight decrease from 10.8% in Q1 2025 and a small improvement from the prior quarter.

What were Snohomish County’s Q1 2026 office asking rents?

$31.20 per square foot, up 0.8% from the prior quarter’s $30.96 PSF.

What is net absorption?

Net absorption is the change in occupied office space during a period — total square feet leased and moved into, minus total square feet vacated. Positive net absorption means more space got filled than emptied. Snohomish County posted 37,931 SF of positive net absorption in Q1 2026, its third straight positive quarter.

How much office space is planned at Waterfront Place?

The Port of Everett’s master plan calls for 447,500 square feet of office at full build-out. Millwright District Phase 2 includes 120,000 square feet of waterfront office in pre-leasing.

How does Snohomish County compare to the broader Seattle office market?

Snohomish County’s 10.7% vacancy is significantly tighter than the broader Seattle/Puget Sound regional vacancy, which Kidder Mathews reported at 22.7% in Q3 2025. Suburban Class A markets in Snohomish County have held up better than the urban Seattle core through the work-from-home shift.

When is the next Kidder Mathews report?

Q2 2026 data typically lands in mid-July.

Is this a good time to lease office space in Everett?

Tenants still hold meaningful leverage at 10.7% vacancy, especially in older Class B and Class C downtown product. Asking rents are firming but concessions remain available. The trend favors landlords gradually but has not flipped to a clear landlord market.