Seattle-Tacoma Retail Market Report

Retail sales growth remains strong as big-box relinquishments slow. Seattle’s retail vacancy rate heads into 2026 roughly in line with the national average. Over the past three years, vacancy has risen 170 basis points, the largest increase among major markets during that period. Much of the pressure in 2025 stemmed from financial strain among national big-box retailers, resulting in higher relinquishments. While closures of Amazon Fresh and Amazon Go will place some additional supermarket and small-format space on the market, broader big-box relinquishment appears limited in 2026, with few upcoming closures announced in the metro as of February. At the same time, long-term tailwinds remain intact. The average asking rent remained largely unchanged over the past three years. Population growth has consistently outpaced the national mark, and retail sales gains have ranked among the top four major markets over the same period. Combined, these factors are giving the metro strong positioning as a potential target for expanding retailers.