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Seattle-area retail vacancy stays near historic lows into 2026

The direct vacancy rate was 3.9% in 2Q, up from 3.7% a year earlier, while average asking rents held at $1.95 per square foot.

Reported · Written up by our desk · Residential

ConnectCRE, citing a Kidder Mathews report, said the Puget Sound retail market entered 2026 with relatively stable fundamentals, supported by resilient consumer spending and improving foot traffic.

The outlet reported that retailers have become more selective amid slower job growth and ongoing cost pressures, with tenants prioritizing efficient store formats and high-performing locations.

While retail vacancy remains near historic lows, it edged up to a 3.9% direct vacancy rate in 2Q from 3.7% a year earlier, and the market showed signs of stabilizing after moving off record lows.

ConnectCRE added that retail rents were largely unchanged, with average asking rates holding at $1.95 per square foot in 2Q, and rent growth expected to continue at a slower pace as retailers weigh expansion plans against economic uncertainty.

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