Colliers International reports office vacancy rates fell on the Eastside and in Seattle during the second quarter.

The Kent Valley industrial market didn't fare as well, with vacancy rates continuing to rise. Colliers said the vacancy rate fell slightly in Pierce County, which saw increased activity during the quarter.

The office vacancy rate in Seattle dropped nearly 200 basis points during the quarter to 15.7 percent, though that's still above the nearly 14 percent rate of a year ago. The quarterly drop is misleading, according to the brokerage, because Amazon.com is starting to move to its new headquarters in the South Lake Union area while continuing to occupy its old space on Beacon Hill.

The vacancy rate on the Eastside fell nearly a full percentage point to just over 15 percent. That's nearly 2.5 points higher than a year ago.

The Eastside recorded positive net absorption of 231,000 square feet. Positive net absorption occurs when the total amount of space in a market decreases during a set period. During the first quarter, the Eastside had 175,000 square feet of negative absorption.

“The Eastside office market during [the second quarter] has shown that the trend of quarterly vacancy increases is waning,” states Colliers' report. “Although the market is still volatile... the current trend appears to be showing that there is light at the end of the tunnel.”

Here are some other office market highlights:

• The Northend vacancy rate jumped half a point to nearly 20.5 percent.

• The South King County vacancy rate jumped almost 150 basis points to about 23.75 percent.

• The Pierce County market remained relatively flat with little change in vacancy, which is now at 13 percent. The vacancy rate of Class A space, however, is less than 2 percent, though Russell Investments building, which is being renamed the 909 A Street Building, will be coming to the market when Russell moves its headquarters to Seattle.

Industrial markets

The vacancy rate in Kent Valley's industrial market edged up a bit to nearly 7.9 percent, or more than 300 basis points over a year ago. The submarket's absorption was negative to the tune of 138,000 square feet. Even so, tenant activity was widespread, with four large deals totaling 422,000 square feet being done during the quarter.

Kent Valley rental rates remain flat, and landlords are offering deals to entice new users or keep existing ones.

Construction activity will continue to be suppressed, according to Colliers, due to weak demand, rising vacancies, a lack of financing and low lease rates.

The Seattle close-in market also saw vacancy rates rise, up 34 basis points to nearly 5.9 percent. A year ago, the rate was 4.3 percent.

Permanent closure of the South Park Bridge, which carries 20,000 vehicles a day, will be a blow to South Seattle businesses. It's estimated to increase freight delivery times by 15 minutes. Colliers says businesses will consider leaving South Park.

King County is closing the old bridge due to safety concerns.

In Pierce County, the vacancy rate fell more than half a point to just under 8.4 percent. There was 281,000 square feet of positive net absorption. Two deals totaling 326,000 square feet were done during the quarter.

The market is growing with some development. There is one speculative project, the 143,000-square-foot Fife Portal Industrial Park.

The Eastside and Northend vacancy rates fell slightly to 9.2 percent and 8.8 percent, respectively.