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Market Report

Seattle-Tacoma Retail Market Report

3Q 2021

Seattle-Tacoma’s Strong Economic Foundation Enhances Retail Outlook Post-Pandemic

Reduced pipeline aids retail performance. The pandemic did little to sway Seattle’s retail sector, which benefits from a decade of robust population and income growth. Vacancy was at a 15-year low at the onset of the health crisis and only increased 20 basis points over the past six quarters. Asking rents continued to grow at one of the fastest rates in the country at 6.6 percent annual growth in the second quarter. The past year’s rent gain pushed the market’s average asking rent up more than 20 percent since the end of 2015, a trend that should be sustained with minimal supply pressure on the horizon. Deliveries in the metro hit an eight-year low over the past four quarters, and only 540,000 square feet of retail space is currently under construction, which will continue to aid availability in the second half. By the end of this year, Seattle’s vacancy is expected to be the lowest of any major U.S. market.
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