Seattle-Tacoma Retail Market Report

Southern suburbs avoid office-related pitfalls. Seattle-Tacoma’s retail sector is outperforming historical norms, even amid headwinds presented by subdued office utilization. Every submarket, except for Downtown Seattle, notched vacancy rates below their long-term averages in March. Tacoma and Southend, in particular, recorded metrics more than 200 basis points below their historical figures. Property metrics here have been relatively stable since 2019, with retailer viability less dependent on midweek foot traffic than other business districts. Mild construction has also fueled tenant demand for available space, keeping local conditions tight. Tacoma and Southend’s delivery volume over the past year represented about one-half of Northend’s. That trend continues, as the two areas will receive less than 40,000 square feet of new supply in 2023.