With regard to construction, an aggregate 750,000 square feet of retail space will come online in this market for this year, bolstering stock levels by 0.9%, M&M reports. In the prior year, nearly 350,000 square feet was completed.

By the close of 2012, healthy demand will help reduce retail vacancy in the region to the lowest level since early 2009, after rates fall 60 basis points to 5.69%, according to M&M. In the prior 12 months, tenants occupied nearly 750,000 square feet, compressing vacancy 40 basis points. Rent growth is expected to be modest this year, with asking rents increasing 0.8% to $21.50 per square foot, reflecting a three-year high.

Regarding investment, M&M reports that single-tenant transaction velocity accelerated by 44% during the past 12 months in this market, as local buyers leveraged freestanding buildings and restaurants near major traffic areas. The rise in sales boosted dollar volume by 15% during the same time. Year-over-year, multi-tenant deal flow increased by twofold as local syndicates reentered the market to purchase unanchored strip centers. Institutions, meanwhile, acquired shopping centers anchored by a top-rated tenant.

As GlobeSt.com reported exclusively last week, Seattle is one of the four western cities that multifamily investors are making an aggressive push toward, according to Jones Lang LaSalle’s third-quarter 2012 West Coast Multifamily Outlook. As a result of the positive momentum from the falling unemployment rates and increase in rental and occupancy fundamentals, Seattle, Phoenix, Los Angeles and San Diego witnessed a total combined multifamily transaction volume of $4.6 billion as of September.