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Seattle-Tacoma's Lack of Construction
is Supporting its Long-Term Retail Outlook
Limited completions mitigate impact from leasing volatility. In March, Seattle-Tacoma's vacancy was on par with the trailing decade-long average of 3.7 percent, despite posting its largest 12-month loss to occupied stock since 2009. While consumer spending shifts are curbing some retailers' needs for space, the metro's sparse deliveries are helping it weather such headwinds. Only 0.4 percent of local inventory was built in the last three years, the third-smallest share among major metros. Limited new supply will lead tenants to backfill existing vacant stock in the long term, with competitive demographics likely adding motivation. Seattle-Tacoma's populace is projected to expand by 0.6 percent this year, the fastest pace among major West Coast markets. This growth may help attract regional retailers that remain in expansion mode, like T&T Supermarket, which moves into two shopping center spaces in 2024.