Downtown Seattle is grappling with a record-high office vacancy rate, but a deal in Pioneer Square shows that unconventional tenants like arts nonprofits can help stabilize struggling buildings.
Actualize Artists in Residence's lease of the former Banana Republic store at the historic Coliseum Theater was ending, potentially stranding more than 30 artists who used the building as a low-cost studio.
In April 2025, Orion Commercial Partners took on the assignment to find the arts collective and incubator a new home.
Early talks to lease space at the Prefontaine Building in Pioneer Square stalled. Brokers dug in and cobbled together a deal for three floors at the historic brick building that was one-third vacant and partially boarded up after losing several tenants since the onset of the COVID-19 pandemic six years ago.
The lease helped cut the vacancy rate at the 117-year-old brick building to 7% while providing the nonprofit with space that fit its budget, according to the Seattle-based brokerage.
"The deal brought more than just occupancy back to the historic building — it restored a sense of energy to a neighborhood that has long served as a hub for the arts," Orion Commercial said in a statement. "As traditional office demand softens, landlords and brokers are increasingly turning to creative users and flexible structures to fill space."
The timing and creativity of the deal that provided a lifeline to both the tenant and the landlord earned Orion Commercial a 2026 CoStar Impact Award, as judged by real estate professionals familiar with the market.
About the deal: Actualize AiR, a women-run and -funded artist-in-residency organization, signed a 14,632-square-foot lease at the Prefontaine Building, which opened in 1909. More than 30 artists maintain low- and no-cost studio space at the building, bolstering Pioneer Square as a center for arts and culture.
What the judges said: Judges praised the lease for an impact that they said went well beyond filling vacant space.
"Executing an office lease in Pioneer Square required overcoming a series of complex obstacles," said Tyler Barth, senior vice president of investments with Kilroy Realty Corp.
The lease has had a direct impact on the downtown Seattle market "by adding vibrancy to an area that had otherwise been stagnating," said Colliers Executive Managing Director Scott Blankenship.
They made it happen: Orion Commercial Partners represented the tenant and the owner. The team included Jack Franz, Bojidar Gabrovski, Jack Deane, David Butler, Scott Clements and Kevin Hanchett of Resource Transition Consultants.