Seattle-Tacoma Industrial Market Report

Logistics-related expansions steer development. Spanning the past two years ending in March 2022, Seattle recorded a 3.7 percent rate of household formation, an increase nearly five times the national pace. Accelerated household growth has catalyzed demand for essential goods, giving rise to a historical high in distribution-related construction across suburban locales. In the first quarter of this year, the metro added 700,000 square feet of distribution space, with 4.5 million more square feet slated for delivery during the rest of 2022. In contrast, warehouse development is fairly minimal throughout the metro. This has the potential to heighten demand for this space as smaller firms capitalize on providing logistical support to expanding e-commerce firms.