Rite Aid Dumps Retail Space
Rite Aid joined the list of nationwide retailers shuttering all locations, thus contributing substantial square footage to the retail market. The offering of Rite Aid’s 1,277 stores (including roughly 60 in the Puget Sound region), along with those of recently bankrupt Joann, Party City, and Forever 21, are fueling speculation about how quickly these leases can be absorbed. Some see upside potential as under-market rents are updated, others are doubtful given the sheer volume hitting the market within a relatively short period of time. Dollar stores are often floated as ideal candidates to take over these leases given the size and profile of the spaces, but they face challenges of their own. Dollar Tree recently sold Family Dollar for $1 billion, down from a purchase price of $9 billion in 2015, due to over-expansion and inflated operating costs. And then there’s tariffs, but we digress…
Nationally, retail space remains in relatively high demand, however Seattle retail rent growth slowed in the first quarter of 2025. After hovering around 3% since 2022, the most recent rate slumped to barely above 0%, according to CoStar.
Washington State Adopts Rent Control
On the residential front, a rent control bill was signed into law for tenants in Washington state, capping annual rent increases at either 7% plus inflation, or 10%, whichever is lower. A separate cap for manufactured and mobile homes caps increases at 5% per year. Landlords are also barred from raising rents within the first year of a rental contract. Single-family residences, which account for 38% of Washington renters, are exempted from the legislation.
Further reading:
https://www.costar.com/article/364357417/heres-where-roughly-1200-rite-aid-leases-are-on-the-market
https://mynorthwest.com/mynorthwest-politics/ferguson-rent-cap/4084750