SEATTLE - Cushman & Wakefield

0Cushman & Wakefield | Seattle | 2019

SEATTLECushman & Wakefield

Global Cities Retail Guide


SEATTLEOVERVIEW

Home of retail giants Amazon, Nordstrom, and Starbucks, Seattle is one of the hottest retail cities in the U.S. and offers a wide variety of shopping and dining options for locals and tourists alike.Seattle's retail corridor, bound by Fourth Avenue to Sixth Avenue and University Street to Pine Street, is home to such retailers as Barneys New York, Nordstrom's flagship store, Gucci, Louis Vuitton, Niketown, AllSaints, Banana Republic, and Zara.

Pike Place Market is one of the most heavily trafficked tourist attractions in the city, with over 10 million annual visitors. Internationally known for its "flying fish”, the market has been serving locals and tourists since 1907. Located on the Puget Sound, Seattle is an ideal location for trans-Pacific and European trade, with the fifth largest container port in the United States.

With a low unemployment rate and job growth exceeding the U.S. average, Seattle is one of the healthiest markets in the nation. Steady job growth has boosted consumer spending levels, which are expected to maintain their upward momentum. Since 2010, retail sales have increased 38% and retail occupancy has held steady at 97%, according to the Downtown Seattle Association.


DOWNTOWN SEATTLEDowntown Seattle is home to Westlake Center and Pacific Place, large shopping centers with a variety of shops and places for dining and entertainment. Encompassing several blocks, this area includes department stores such as Nordstrom's flagship store and Macy's, specialty and luxury retailers, value retailers, residential and commercial buildings, hotels, and the Washington State Convention Center (which will add approximately 250,000 sf of exhibit space, 125,000 sf of meeting rooms, and a 60,000-sf ballroom by 2021).

SEATTLEKEY RETAIL STREETS & AREAS

PIONEER SQUAREPioneer Square, at the south end of downtown Seattle, is a historic district that is home to art galleries, sports bars, nightclubs, bookstores, and tourist shops. The area caters primarily to tourists and sports fans, serving as the gateway to the city's two major sports venues, T-Mobile Park and CenturyLink Field. The ongoing removal of the Alaskan Way viaduct (due to complete in the summer of 2019) and construction of its replacement tunnel (which opened in February 2019) have had an impact on the area, causing a decline in retail leasing activity.

PIKE PLACE MARKETPike Place Market is one of the oldest continually operated public farmer's markets in the nation, where shoppers can watch fish merchants cut and toss fish to entertain shoppers. Fresh seafood, local restaurants, specialty craft booths, and a prime location overlooking Elliott Bay, make this a great attraction for visitors and locals alike.

UNIVERSITY DISTRICTAs its name would imply, the University District is located adjacent to the University of Washington's 703-acre campus and its 48,000 students. It caters to a youthful crowd and offers affordable eats and shops in a more laid-back atmosphere. The University Village shopping center includes a variety of upscale shops, independent boutiques, national retailers, and local restaurants that attract students, tourists, and the neighboring residential population.

FREMONT/BALLARDFremont and Ballard, in the northwestern part of Seattle, are neighborhood shopping areas that attract locals interested in fashion and upscale dining but prefer nearby neighborhood boutiques and restaurants over downtown Seattle's offerings. These affluent neighborhoods are made up of upscale boutiques, local restaurants and bars, and home furnishing and specialty crafts stores.


SOUTH LAKE UNIONSouth Lake Union, on the north end of the downtown core, has emerged as one of Seattle's fastest growing neighborhoods, with a well-defined live-work-play culture. Amazon’s expansion of its corporate headquarters and rapid gentrification have transformed this former industrial area into a hub for technology and life sciences organizations and a variety of bars and restaurants. Retailers in this area cater to the daytime population that has migrated here the past few years and filled up the recently constructed apartment and condo projects. Facebook, Google, and Expedia are all relocating and/or expanding into the neighborhood in 2019 and 2020.

SEATTLEKEY RETAIL STREETS & AREAS

UNIVERSITY VILLAGEUniversity Village is the premier upscale, open-air mall in the Seattle area. Located in the Ravenna neighborhood northeast of downtown, near the University of Washington campus, it features exterior storefronts, covered sidewalks, and an abundance of free parking—making it more convenient than shopping downtown. Tenants include national retailers such as Crate & Barrel, Gap, H&M, and American Eagle, and many locally-owned boutiques such as Eddie Bauer, glassybaby, and Tommy Bahama. Dining options are plentiful, with Piatti, JOEY Kitchen, Ram Restaurant & Brewery, and Elemental Wood Fired Pizza among the local favorites. Amazon opened its first physical storefront at U-Village in November 2015.

PACIFIC PLACEPacific Place is an upscale shopping center that has been a staple of the downtown retail corridor since 1998. The center includes high-end retailers such as Barneys New York, Kate Spade, Coach, Michael Kors, and Tiffany & Co. A skybridge connects the center directly to the flagship Nordstrom store. Washington, D.C.-based Madison Marquette purchased Pacific Place for $271 million in 2014.


SEATTLEMARKET OVERVIEW

KEY AREAS / STREETS/SHOPPING CENTERS

CONSUMER PROFILE

MAJOR RETAILERS PRESENT NEW ENTRANTS TYPICAL RENT FOR UNIT OF 2,000 SQFT

RANGE OF UNIT SIZES

Downtown Seattle Upscale, Tourists, Mass Market, CBD Employees

Nordstrom flagship, Urban Outfitters, Barneys, Macy's, Gap, Banana Republic, Niketown

Aerlume, Andare, Ben Paris, Bar Mercato, Dough Zone

$40-$75 psf All sizes

South Lake Union Urban, Young Adult

REI flagship, Whole Foods, urban furniture stores

Jack’s BBQ, La Palmera(Summer 2019), Lassi & Spice, Shake Shack, Urban Gyro


Fremont/Ballard Casual, Hipsters, Local, Young Families

Independent boutique shops Baker’s, Hannyatou, Lucky Santo, Sawyer, Schmaltzy’s

$25-$35 psf 1,000 sf - 5,000 sf

Pike Place Market Tourist Food retailers, eclectic independent boutique shops

Joe Chocolate Co. $35-$48 psf 1,000 sf - 5,000 sf

Pioneer Square Urban Casual, Artists

Independent boutique shops Bisato, General Porpoise, Jujubeet


University District Students, Upscale, Families

Pottery Barn, Crate & Barrel, Williams Sonoma, Gap, H&M, multiple boutique shops

Bistro Shirlee (Spring 2019), Koa, Little Duck, The Mountaineering Club, Shake Shack (Spring 2020)



Seattle serves as a mecca for local and international foodies alike. Its location on the Puget Sound offers easy access to fresh produce and seafood, and provides a variety of dining attractions.Seattle is home to several restauranteurs and chefs who have garnered national and international attention. Tom Douglas (2012 James Beard winner, Outstanding Restaurateur) owns nineteen Seattle-area restaurants and has a partnership with Nordstrom. Ethan Stowell (2017 & 2019 James Beard semifinalist, Outstanding Restauranteur) operates fifteen local restaurants, including Cortina and Super Bueno, both of which opened in 2018. Michael Mina (2002 James Beard winner, Best Chef: California) has owned and operated popular upscale RN74 in the heart of the retail and financial core since 2011. Matt Dillon (2012 James Beard winner, Best Chef: Northwest) is owner/chef of Sitka & Spruce, Bar Ferdinand, and others. Maria Hines (2009 James Beard winner, Best Chef: Northwest) has won several awards for her certified organic Tilth Restaurant, which was deemed one of the best new restaurants in the country by the New York Times when it opened in 2008. Edouardo Jordan (2018 James Beard winner, Best Chef: Northwest) is the owner/chef of Salare, JuneBaby (2018 James Beard winner, Best New Restaurant), and Lucinda Grain Bar, all located in the Ravenna neighborhood adjacent to the University District.

Not only does Seattle offer a variety of upscale local and national restaurants, but many urban neighborhoods outside of the downtown core have opened up dozens of casual cafes and bistros that offer dishes featuring fresh, local ingredients. In addition, the city's rich diverse population offers an assortment of ethnic food options including Vietnamese, Japanese, Indian, Middle Eastern, Ethiopian, Southeast Asian, Scandinavian, and European.

Although Seattle is home to Starbucks, the city offers a diverse array of artisanal coffee shops such as Caffé Vita, Uptown Espresso, Caffé Ladro, Victrola Coffee Roasters, Espresso Vivace, Tougo Coffee Co., and Elm Coffee Roasters. New-to-market brands and concepts in the fast casual/quick service category include Little Big Burger, Bonchon, Izumi Ramen, Urban Gyro, Bopbox, MenyaMusashi Niten Ichiryu, among others.

SEATTLEFOOD & BEVERAGE


FOOD & BEVERAGE MARKET OVERVIEWSEATTLE

KEY AREAS CONSUMER PROFILE

FOOD & BEVERAGE OPERATORS INCLUDING

RENT FOR 3,500 SQFT UNIT

Downtown Seattle Upscale, Tourists,Professionals

Etta's, Metropolitan Grill, Elliott's Oyster House, Shiro's, Dahlia Lounge, Purple Café, RN74, Cortina, The Capital Grille, Palomino, Hard Rock Café, Gordon Biersch, Cheesecake Factory, Ruth's Chris Steakhouse

$28-$60 psf

South Lake Union

Urban, Trendy, YoungProfessionals, Foodies

Canlis, Brave Horse Tavern, Daniel's Broiler,Cuoco, Lunchbox Lab, Flying Fish, TopPot Doughnuts, Veggie Grill, re:public, Cask & Trotter, Duke’s Seafood

$28-$45 psf

Fremont/Ballard

Casual, Trendy, YoungProfessionals, Foodies

Paseo, Red Door, El Camino, Matador, Staple & Fancy, Delancey, The Walrus and the Carpenter, Ray’s Boathouse, Ballard Annex Oyster House, Sawyer

$25-$40 psf

Pike Place Market Urban, Tourists,Professionals

Matt's in the Market, Maximilien, IL Bistro, Pike Brewing Company, Athenian Seafood, Lowell's, Pike Place Chowder, Piroshky Piroshky, Emmett Watson’s Oyster Bar

$25-$65 psf

Pioneer Square Urban, Sports Fans

Merchants Café & Saloon, Salumi, Il Corvo, Nirmal’s, Flatstick Pub, Owl N Thistle $30-$40 psf

University District Affluent, Families, Students

Agua Verde, JaK's Grill, Ram Restaurant & Brewery, Piatti, Thai Tom, Cedar’s, Mr. Lu’s $28-$45 psf

No warranty or representation, express or implied, is made to the accuracy or completeness of the information contained herein, and the same is submitted subject to errors, omissions, change of price, rental or other conditions, withdrawal without notice, and to any special listing conditions imposed by our principals.

© 2019 Cushman & Wakefield. All rights reserved.

ERIKA SCHANKEManaging DirectorAmericas Retail Services1290 Avenue of the AmericasNew York, NY 10104, USATel: +1 212 841 5024Mob: +1 404 680 [email protected]

SEATTLE - Cushman & Wakefield

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