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Retail Sector in Seattle Poised for Growth When Market Recovers
As uncertainty continues in light of economic headwinds and real estate challenges, overall, retail sales saw an increase compared to the previous month and the previous year. Even with the recent struggles, the retail market is well positioned for growth once the economy begins to recover, according to Kidder Mathews’ Q3 Seattle Retail report.
The direct vacancy rate was 2.9 percent at the end of 3Q 2023, compared to 2.8 percent last quarter and 2.6 percent last year. The average asking lease rate increased by 3 percent year-over-year and 1.8 percent quarter-over-quarter due primarily to low vacancies.
More than 240,000 square feet of projects are under construction, and several Seattle retail and mixed-use buildings have been recently renovated. However, the region also faces some retail challenges specific to theft and safety concerns. Ultimately, even with stagnant leasing and lower levels of activity in 2023, Seattle’s retail market appears to be well-positioned for growth once the market recovers.
