📈 WA economy outpaces nation

WA Economic Growth On Track to Outpace Nation

Most of this growth is due to Washington’s information sector, which includes software, cloud computing, digital services and communication technology. This is according to new Bureau of Economic Analysis data released last week, which found our state’s gross domestic product, which refers to the total value of all goods and services produced within the state, rose 1.1% to almost $730 billion between the fourth quarter of 2025 and the first quarter of 2026. If this growth keeps on pace, it will exceed national GDP and that of any other state. [Seattle Times]

• Growth despite big cuts: Amazon and Microsoft are pumping money into AI spending – projections show up to $390 billion. But this money has to come from somewhere, and Microsoft is again cutting jobs in order to focus on AI. The company announced 4,800 job cuts, or just over 2% of its global workforce, including about 600 jobs in Washington. Anthropic, the San Francisco-based artificial intelligence company that makes Claude, also just signed a lease for a 113,000-square-foot space at 700 Dexter Ave N in South Lake Union. [GeekWire]
• Tech leaves downtown real estate empty: Nearly 37% of the downtown Seattle office space is vacant. This is a higher rate than during the Great Recession of 2008-10, when downtown office vacancy peaked at 21%. According to reporting by the Seattle Times’ Paul Roberts, this vacancy rate is due in large part to the tech sector. The sector pushed for office space leading up to the pandemic and realized it had overshot and “left downtown Seattle with a gap between supply and demand that will be very difficult to bridge.” Since 2020, downtown office properties have lost a staggering $15 billion — 46% of their value. [Seattle Times]
• What to do with all the extra buildings? Experts point to storage and housing. A recent analysis by Yardi says 24% of Seattle office space could be converted to multifamily housing. The city of Seattle estimates conversions could generate up to 6,000 housing units over the next seven years. Roberts estimates this would use around a fifth of the city’s present office surplus. All of this points to the continued growth of a K-shaped economy. [Seattle Times]

🪸 A quest to save the endangered sunflower star: Researchers at the University of Washington have teamed up with the Samish Indian Nation to bring the 24-armed sea star called the sunflower star back from potential extinction. The story involves sea urchin farming, kelp forests, and tribal fishing rights. [KUOW]

🧑🏻‍⚖️ 117 immigration hearings in one day: The Trump administration has sped up preliminary deportation hearing proceedings in a way critics say is “at the expense of due process.” For example, under the new process, a judge saw 117 cases while nearby judges saw between 7 and 35 cases. This process has left people with short notice to make it to court or else receive an “in absentia” removal order. [Seattle Times]

🟣 UW rolls out ‘Purple’ AI platform: After the news leaked six months ago, University of Washington has officially launched its enterprise artificial intelligence (AI) platform Purple to faculty and staff. The launch has come with immediate criticism, including that its creation was about limiting liability and that the tool itself is limited compared to readily commercially available. [The Daily]