Seattle-Tacoma Industrial Market Report

Performance split among older and newer properties. Mirroring other major West Coast markets, Seattle’s industrial sector entered July with its highest vacancy in more than a decade. Despite this, pockets of encouraging demand exist. Vacancy among pre-2010-built properties was 5.6 percent in June, 150 basis points below the metrowide level. In contrast, properties built within the past 15 years had collective vacancy of 13.7 percent in June, with the distribution segment home to a 10 percent rate. Demand in these latter subsectors may improve if freight volumes continue to rise, more tenants target tech-oriented facilities and a long-term pullback in construction takes hold. During the first half of 2024, the Northwest Seaport Alliance reported an 11.5 percent year-to-date cargo volume increase, with air freight volume also up by a double-digit percentage at Sea-Tac Airport.