Uptick Continues in Seattle Industrial Market

Activity in the industrial markets has modestly picked up over the past six months, with an uptick beginning in Q2 and continuing through Q3, according to a recent report by Kidder Mathews.

Inflation, which peaked at 10.1% in June 2022, has since dropped to 3.1% as of August 2024, largely due to declining fuel prices. However, core inflation (excluding food and energy) remains elevated at 4.0%.

For the industrial markets at Q3 2024, regional vacancy is 7.6%, up from 7.4% of Q2 and the recent low of 3.6% of Q4 2022. Construction activity bumped up from 4.0 million s.f. in Q2 to 7.5 million s.f. in Q3, contained in 23 projects.

72.6% of the construction activity is in Pierce County, with the start of Bridge Point Tacoma 2MM. Preleasing is at 47.3% with 96.4% of these leases located in Perce County projects. 

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