Market Trends
- Despite the market exhibiting some signs of softening, such as a decrease in net absorption by 194K square feet (sf), a modest reduction in large-scale space rents, and a slight increase in vacancy, the Seattle/Puget Sound industrial market remains tight historically.
- Leasing activity in the Seattle/Puget Sound area demonstrates resilience, as it maintains levels closely resembling those seen before the pandemic.
- The current construction pipeline counts 5.3 msf of speculative construction currently underway, making up 70.7% of all space under construction. Sales volumes and construction are expected to decelerate as high interest rates, tightened lending requirements, and softening market conditions persist.