Seattle-Tacoma Industrial Market Report
Developers and Tenants Ramp Up Activity In the Southern Portion of the Puget Sound
Market conditions tighten. Seattle’s bustling economy coupled with its position as one of the largest ports on the West Coast continues to drive leasing and development in the metro. Vacancy briefly peaked at 5.5 percent during the third quarter of 2020 but fell 50 basis points before year-end. The rate held steady in the low-5 percent range through the first six months of 2021 as conditions stabilized. Robust demand for warehouse and distribution space helped sustain rent growth through the period of turbulence. Amazon and other e-commerce companies have been taking large blocks of space off the market. Momentum has continued in the third quarter as preliminary data shows at least 13 leases signed each totaling over 100,000 square feet.