Puget Sound Retail Vacancy Drops Below 4%

SEATTLE-The region’s retail vacancy rate fell below 4% during the second half of 2003, according to a year-end report by CB Richard Ellis, which concludes that the Puget Sound retail market remains a sought after location for retailers despite subdued sales nationally.

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%.