The Puget Sound retail market continued to face headwinds through the third quarter of 2025, with negative net absorption and signs of softening leasing demand observed across much of the region, according to recent report by Kidder Mathews.

However, consumer spending has strengthened in recent months as inflationary pressures eased. Port activity through Seattle and Tacoma remained uneven during the quarter, while inflation and tariff policy shifts continue to create uncertainty. The retail vacancy rate increased to 3.8%, Despite the increase, the market remains relatively tight, with vacancy still below the 10-year historical average of 3.9% and among the lowest on the West Coast.

Market wide net absorption has been relatively subdued and the Seattle metro posted its fourth consecutive quarter of negative activity. While quarterly and year-over-year sales volumes each fell by roughly 41% to $220M, overall year-to-date activity has held relatively steady, down only 4.2% from the same point in 2024.