Pacific Place Update

The exodus of national brands leaves Pacific Place with high vacancies and prompts a push toward short term pop ups as a path to revival.

Seattle's Pacific Place Mirrors Downtown Retail Woes

On a July afternoon, downtown Seattle hums with office workers and visitors, but Pacific Place feels different. Local tenants like Kylejaca Hair, owner of Debonair Decor, say the past 18 months have been the toughest in five years, with foot traffic thinning after big brands pulled out. People stop to browse but the energy is noticeably thinner and shopfronts look less inviting.

Nearly a decade after a four year renovation, the center changed hands. In May 2024 BH Properties bought Pacific Place for 88.25 million, a fraction of its value a decade earlier. Today the mall is about half full, with 55 percent of spaces vacant in 2024 and only four national brands remaining among 17 retailers. Most leases are short term, and anchors like Lululemon and Tiffany have left, making it harder for smaller businesses to rely on consistent foot traffic. Leasing manager Janel Jensen says anchors will help turn the corner, but large format malls need proof of success before brands commit. Seattle Restored, a city program, is helping by offering three to six month pop ups, and two new shops are planned to join Pacific Place this month, a sign of cautious life returning to the space.

Pacific Place mirrors a broader trend in downtown retail. Big brands are stepping back from large enclosed spaces as foot traffic remains uneven and costs stay high. The sale to BH Properties shows investors treating downtown as a revival project rather than a quick turnaround. Short term leases and pop ups reduce immediate risk for landlords but complicate long term planning for retailers. The city program Seattle Restored aims to seed life with temporary spaces, but the challenge is convincing anchors to take a leap and commit to longer leases.

Beyond Pacific Place, Seattle’s downtown is still adapting to changing shopping patterns. Bellevue and other suburbs attract foot traffic with different cost dynamics, suggesting Seattle must offer a compelling mix of spaces and experiences. The recovery may hinge on a few strong anchors and a steady return of pedestrians who walk and linger, not just pass through. The story remains work in progress, with optimism tied to tangible successes in the next few quarters.

Highlights

Downtown retail is a long game and Pacific Place could be a bellwether for what comes next.