The retail market in Seattle is showing signs of growth despite economic challenges and real estate obstacles. According to Kidder Mathews’ Q3 report, there has been an increase in overall retail sales compared to the previous month and year. Despite recent struggles, the market is expected to see significant growth once the economy begins its recovery.
At the end of 3Q 2023, direct vacancy rates were at 2.9%, slightly higher than last quarter’s rate of 2.8% and last year’s rate of 2.6%. The average asking lease rate also saw a slight increase by both quarterly (1.8%) and yearly (3%) measures due to low vacancies.
Currently, over 240,000 square feet of projects are under construction with several retail buildings undergoing renovations in Seattle’s mixed-use areas . However , theft and safety concerns pose specific challenges for this region’s retailers . Overall , even though leasing activity has been stagnant with lower levels seen in recent years , Seattle’s retail sector shows strong potential for future growth once it recovers from current setbacks.
