Hi there. I live in the State of Washington and am looking to adopt a retired service dog. I would prefer either a German Shepherd or a Labrador, but am open. Can anyone guide me as to where I might find such an animal or am I dreaming?

I know that the Seeing Eye in Morristown, NJ has retired service dogs available for adoption but you have to come to NJ for it. Try contacting the Seeing Eye (973-539-4425) and see if they can give you the names of similar organizations in your area that might have dogs available for adoption.

It is possible. I would start with http://www.guidedogs.com/placement.html I think they have an Oregon campus too. I think they would be more practical to work with than say The Seeing Eye in NJ or South East in Florida. You may not get one very quickly. There are also other assistance dogs that may need a home. You can find a number of schools at International Association of Assistance Dog Partners I think Canine Companions has a West Coast facility.

There aren't that many dogs available. Most of the people that had the dog keep it after it retires if at all possible. If not, they place it with close family or friends. The school that trained it will take it back otherwise. They first offer it to the family that raised it as a puppy. If they refuse or can't be contacted, then they look for other homes. Part of the bargain with those that raise the puppy is that the school will always see to it that the dog has a good home for the rest of its life. I know from personal experience they take the responsibility quite seriously.

Since you mentioned German Shephards, have you considered expanding your search to retired military service or police dogs? Just as with guidedogs, these will also be few and far between but it can't hurt to inquire and put in an application for one of those as well. Here are a couple of links:
Retired Police Dog for Adoption, Police K9 Dog Training Services, Drug Dogs, Bomb Dogs, Mine Detector Dogs, K9 Behavior
Adoption Application - Freedom Service Dogs, Inc.
Adopting a U. S. Military Service Dog

Since you haven't mentioned why you are looking for a retired service dog, if you are looking for a dog that has been trained properly and doesn't have "issues" you might want to contact your local vets & animal shelters and put the word out on what kind of dog you are looking for, and why. Sometimes, there are wonderful older dogs to be found in these places who are in need of homes because their owner has passed away, entered a nursing home or assisted living facility that does not allow dogs. The more places you contact, the better chance you have of finding the right dog for you and your family.