Based on a recent article in the Everett Herold, Snohomish County retail vacancies remained very low (around 3.4%) in Q4, 2025. The Submarket continues to demonstrate remarkable resilience even as vacancies go up around the state and nation. Over the past 6 years, the vacancy rate has never wavered by more than 1%. The rate has stayed below the national average reflecting the steady demand for shopping center and storefront space locally.
It also shows us the steady population growth and the stability of small neighborhood retail spaces to survive the decline in big-box retail. Limited availability is also continuing to support this statistic in the county’s commercial property market. Ned Whalen, a commercial broker for Kidder Matthews says, “People aren’t building retail like they used to, supply and demand are the biggest drivers of a low vacancy rate.”
Shannon Affholter, chair of the Runstad Department of Real Estate at the University of Washington, says "Snohomish County’s low retail vacancy rate reflects the prolonged lack of new construction. Higher construction costs, along with a longer and more complex approval process at the municipal level and uncertainty about how much space retailers are willing to lease, have discouraged developers from adding new space, leaving existing properties with little capacity to absorb additional tenants,” he said.
Our take:
This a bit of a 'catch 22' in that vacancy rates are low, but building remains unpracticable given the costs to build, but rates are not seeming to be increasing dramatically.
Overall, this coincides with our positive outlook on Snohomish County commercial real estate. We need to build more retail, office and apartment complexes and the vacancy rate would indicate that well-built / positioned projects will find ample tenants.
Our Firm:
2716 Colby Ave
Everett, WA 98201
Scott@weitzcommerical.com
t: 206.306.4034.
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