The region's retail vacancy rate fell to 3.91% during the second half of 2003, down from 4.30% in the first half of the year. For the second consecutive quarter, regionwide net absorption was positive. Nearly 224,000 sf was absorbed during the second half of 2003, with bulk of the absorption occurring in the Bellevue/Eastside and the Southend markets, according to the CBRE report.

The largest decline in vacancy occurred in the Southend submarket, where it shrunk from 4.58% to 3.12%, the lowest rate in the region. The vacancy rate in the Northend also fell, from 4.77% at the end of June to 4.43% at the end of the fourth quarter. The Downtown Seattle market was virtually flat with 3.67% vacant after the first half of the year and 3.69% vacant at the end of the year. The Eastside vacancy rate rose from 4.13% in the first half to 4.19% at the end of the year. In Pierce County, market vacancy rates rose from 3.88% to 3.99%.

Regionwide, average asking lease rates increased slightly from $18.20 NNN in June to $18.24 NNN at the end of December. Decreases were recorded in the Pierce County and Southend markets, where rates decreased $1.73 per sf and $1.47 per sf respectively. The largest increase was recorded in the Bellevue/Eastside market, where the average asking lease rate for available space increased from $18.48- to $19.57 per sf.