Seattle-Tacoma Retail Market Report

Seattle-Tacoma retail enters 2025 with measured optimism. Modestly higher vacancy masks exceptionally swift backfilling. Big-box space left by Big Lots and Bed Bath & Beyond have been quickly absorbed by fitness, off-price grocers and niche retailers. Snohomish and Pierce counties lead in leasing velocity, bolstered by high-income in-migrants and stable tech and aerospace
hiring. Meanwhile, the Eastside’s affluent demographics continue attracting new entrants in the 10,000- to 50,000-square-foot range, fulfilling rising demand for experiential and daily-needs retail. Though Seattle proper grapples with diminished office foot traffic, premier locations still command top rents amid recent historically low completions. Large-format availabilities also vanish quickly, showcasing strong fundamentals that benefit investors seeking a market where tenant demand stays robust, supply expansion remains constrained and asking rents — despite moderating growth — are trending upward.