$115M Sale Shows Strength of Pierce Co. Industrial

Tacoma Supply Chain Center, a new class-A industrial complex in Frederickson, WA, recently sold to Dalfen Industrial in an off-market deal for approximately $115 million. The property is located off of 176th Street within the broader Pierce County industrial submarket of Seattle.

This sale highlights the strength of Pierce County’s industrial markets, which have gained increased demand and development in recent years. This submarket experienced 67 percent of Seattle’s total net absorption in 2020 and continues to be in high demand. Tenants are migrating south of Seattle’s Kent Valley submarkets in search of better value, newer/more functional product and a stronger labor market.

“What’s occurring in Frederickson is a testament to the continual evolution of Seattle and growing demand in the submarkets south of the Kent Valley. The property provides best-in-class modern property amenities and ideally meets the tenant demand of the area,” said Rich Weiss, market officer for Dalfen’s West region.

Colliers’ industrial team of Bill Condon and Matt McGregor represented the buyer.

“Frederickson is as active as any market in the region,” said Condon. “Not only is it one of the strongest submarkets in the Puget Sound region, it rivals any submarket on the West Coast.”

Frederickson offers proximity to the Port of Tacoma as well as major trucking routes such as State Route 512 and Interstate 5.

“Many corporate tenants are now calling Frederickson home because of its great surrounding labor force and the number of high-quality facilities,” adds McGregor. “We expect momentum to continue in this area and for this project to be highly successful.”

Completed last month, Tacoma Supply Chain Center features three buildings totaling 711,855 square feet. The property offers a mix of dock high grade-level loading and parking for more than 300 trailers.

“Dalfen is focused on expanding our West Coast portfolio, with this asset being the third acquisition in two months,” said Sean Dalfen, president and chief investment officer. “The last-mile fundamentals of this project are outstanding with close proximity to the Port of Tacoma and major thoroughfares as well as a large workforce and customer base.”