Retail

Retail in Washington stayed fairly stagnant for Q3. Vacancy rates continued to rise. Mortgage rates dropped momentarily and then increased as a surprise to most of us and cap rates hovered right above 6%. Sales activity was slow as rumors of rate drops have been pushed out months or potentially longer. Brokers are optimistic about a strong finish to 2025 and a super active 2026. As rates drop, we feel that interest in buying will…

Activity was slow in Q2. Vacancy rose and activity slowed with the tariffs kicking in. A “wait and see” approach was what we observed. Cap rates rose as well. With the talk of tariffs slowing and becoming slightly more stable, we are seeing a spur of activity stepping into Q3. With the increasing talk of interest rates coming down, we expect a strong finish to the year. MARKET INDICATORS Q2 2025 Q1 2025 Q4 2024…

With the election over, the Retail sector had vacancy rise slightly. As new tariffs take effect, it will be interesting to see how the retail sector deals with changes in taxes. Sale activity stayed strong with multiple grocery anchored shopping centers changing ownership. Net absorption stayed flat with companies strategizing for the changing market. MARKET INDICATORS Q1 2025 Q4 2024 Q3 2024 Q2 2024 Q1 2024 ↑  12 Mo. Net Absorption (SF) (152,385) (829,551) (429,189)…

Retail OVERVIEW THE FORD BUILDING 1521-1523 10th Ave , Seattle, WA Retail Investment 33,391 SF Seller Representation Sale Price: $14,000,000 THE OUTCOME Listed: November 25, 2016 Competing Offers: 3 Offers Under Contract: February 17, 2017 Closed: April 28, 2017 THE CHALLENGE The Ford Building is a classic historic building with a large lower level/basement. The building had two major tenants, Elliott Bay Book Store, and Totokaelo clothing store, who both had space on the main…

The third quarter of 2024 was active for the retail market, driven by a slight dip in interest rates, spurring buyer interest. Vacancy rates saw a minor decrease from 3.4% to 3.3%, and the annual average NNN asking rate softened slightly to $29.34 per square foot. Amid pre-election uncertainty, investors emerged from the sidelines as rates reached their lowest since Q3 2023, reflecting renewed confidence in retail opportunities. MARKET INDICATORS Q3 2024 Q2 2024 Q1…

The Puget Sound retail market continues to struggle in downtown urban areas, while suburban markets flourish. With office sector vacancy rates remaining high and many people working from home full or part-time, daily retail mirrors its COVID-era trajectory. Vacancy rates hover around 3.5% market-wide but are significantly higher in downtown Seattle, ranging from 12-14%. MARKET INDICATORS Q2 2024 Q1 2024 Q4 2023 Q3 2023 Q2 2023 ↑  12 Mo. Net Absorption (SF) (688,394) (668,493) (548,911)…

September 11, 2023 (Bellevue, WA) – Lee & Associates Commercial Real Estate Services | Pacific Northwest is delighted to welcome Zachary Ota and Michael Ota to its Tacoma office. As an accomplished team in commercial leasing and sales, they specialize in office, industrial, and retail properties throughout the South Sound region, with significant experience in Puyallup, Fife, Sumner, Tacoma, and Lakewood. Zachary and Micheal are notable alumni of the University of Washington Milgard School of…

Lee & Associates Pacific Northwest is excited to share the news that five of their brokers have been honored as winners of CoStar’s Q2 2023 Quarterly Power Broker awards. Notably, Billy Moultrie and Andrew Hull have received recognition in the Top Industrial Leasing Deal category, while Jim Reed and Adrienne Hunter have been acknowledged for their achievements in the Top Office Leasing Deal category. Additionally, Jim Reed and Carson Scott have earned recognition for their…

Small Value-Add Office OVERVIEW LUSTY LADY | 1315 1st Avenue 1315 1st Avenue, Seattle, WA Major Office / Retail / Hospitality Renovation 24,880 SF / 4,440 Land SF / 0.10 AC Seller Representation Sale Price: $3,000,000 Daedong-USA, Inc., distributes Kioti “We were impressed by the number of tours and offers the Lee Team was able to procure, along with their positive attitude throughout a process that took nearly two years and involved multiple buyers.” -…

September 30, 2022 (Seattle, WA) – Lee & Associates Commercial Real Estate Services is pleased to have represented Sound Credit Union in its 22,721 SF lease at Pacific Plaza, located at 1250 Pacific Avenue in Tacoma, Washington.  Harrison Laird of Lee & Associates represented the Tenant; the Landlord, Pacific Plaza Development LLC was represented by Chris Highsmith, Mike Hickey and Briana Hickey of Neil Walter Company. Sound Credit Union has been headquartered in downtown Tacoma…