The Snohomish County commercial real estate market is showing signs of stabilization and selective growth as we head into the second half of 2025. While national trends are still facing headwinds, Snohomish County remains resilient across several sectors.
Office Market
The office sector continues its gradual adjustment. As of the end of Q1 2025, the vacancy rate stood at 13.2%. While this reflects a modest increase from prior years, there has been steady leasing activity, particularly in suburban locations offering flexible layouts. Average asking rents have remained stable, though concessions and tenant improvement allowances are playing a larger role in negotiations.
Industrial Market
Snohomish County remains a bright spot in the regional industrial sector. The current vacancy rate is 7.2%, up slightly but still historically low for this market. New developments are underway, focusing primarily on logistics and distribution centers driven by sustained e-commerce demand. Investor interest remains strong, particularly for well-located assets with stable long-term leases.
Retail Market
Retail continues its slow transformation. Centers are focusing on blending traditional retail with food, services, and experiential offerings to attract foot traffic. Alderwood Mall remains the county’s flagship redevelopment story, as it evolves into a mixed-use, lifestyle destination. Retailers are heavily emphasizing omnichannel strategies to align with changing consumer behavior.
Multifamily Housing
The multifamily sector remains healthy with strong occupancy levels. Snohomish County continues to see demand for rental housing across price points, supported by consistent population growth. Several new apartment developments are in the pipeline, designed to meet both workforce and luxury rental demand. Investment activity remains steady, with investors seeking stable returns in this supply-constrained market.
Infrastructure and Transportation
The Lynnwood Link light rail extension, which opened in August 2024, has already started to reshape transit-oriented development opportunities throughout southern Snohomish County. Mixed-use projects near light rail stations are attracting new attention from both developers and investors, who are targeting the region’s long-term growth.
Summary
While the market is not without its challenges—particularly in office space—Snohomish County commercial real estate remains on solid footing across industrial, multifamily, and key retail locations. Investors, landlords, and tenants who are prepared to navigate this evolving environment can still find meaningful opportunities in the months ahead.
BOTTOM LINE TAKE: While anyone that reads this blog knows that I'm generally pessimistic about residential and a lot of commercial real estate, I think Snohomish has as strong as prospects as any. The zoning changes are a huge deal, and I believe Everett and Snohomish are ripe for a strong decade or two. I often say that a single strong Tech company making Everett a HQ or large satellite office will ignite the timbers of a historically under served and under-utilized area. With the airport, Everett Port and zoning that seems unfathomable given the current city scape, I think Snohomish County will withstand any headwinds we face better than most.
For information on our Snohomish County Investment Fund, or Snohomish County Commercial Real Estate investing, you can reach me directly below. Email or text preferred and we can set a time to discuss your needs.
Scott Weitz
Scott@WeitzCommercial.com
T: 206.306.4034.
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