Seattle-Tacoma Retail Market Report

Standout vacancy persists. Seattle's retail sector has proved to be fairly resilient through the passing of the health crisis, with consumer spending bolstered by a high median income and strong household formation. Availability in Seattle rose no more than 60 basis points through the worst of the pandemic, topping out at 3.2 percent in March 2021, the lowest rate among major markets at the time. As health concerns subsided, Seattle prevailed as the tightest market in the nation, entering the second half of 2022 with a vacancy rate of 2.9 percent. This standing should be sustained through 2023, with the 27,000 households projected to be added during the year propping up consumer demand and stimulating additional commitments from retailers. Vacancy may dip further into record-low territory in the near term, as the metro's active pipeline totaled a mere 123,000 square feet in September.