Seattle-Tacoma Retail Market Report

Seattle is well-positioned to navigate economic challenges. As of July, metrowide vacancy rate reached its highest point since 2017. While vacancy rose through midyear across almost all submarkets, the Eastside, Southend and Tacoma ranked among the ten least vacant West Coast submarkets with at least 5 million square feet of stock as of June. Food and fitness concepts have led leasing so far this year, including Pinstripes and Henry’s Gymnasium near Dexter Yard, a new biotech and life sciences hub. Tenants are generally having to target existing space, as inventory has expanded by just 0.4 percent over the past three years — one of the slowest paces among major U.S. metros. Nevertheless, construction activity is accelerating, with 430,000 square feet underway and over a million square feet expected to complete in the next three years.