Seattle & Northwest CRE News In Your Inbox.
Sign up for Connect emails to stay informed with CRE stories that are 150 words or less.
Puget Sound Industrial Market Shows Signs of Improvement
The Puget Sound industrial market showed signs of improvement as 2025 drew to a close, according to a recent report by CBRE.
Net absorption in the region turned positive quarter over quarter, totaling 386,969 square feet. However, vacancy rose slightly to 10.4%, an increase of 40 basis points for the quarter and a 1.8% increase year-over-year.
The rise in vacancy was driven by significant deliveries, including Bridge Point Tacoma, which collectively added 1,811,570 square feet of new inventory to the market. The average direct asking rate decreased slightly, ending the quarter at $1.15 per square foot per month.
Leasing activity reflected an ongoing flight to quality, as tenants continue to favor Class A facilities. In contrast, Class B and C assets continued to face slower leasing velocity, with tenants consolidating or delaying commitments amid broader economic uncertainty. The divide increased pressure on older inventory, while port performance showed similar caution.
Don’t miss Carter Andrus, Chief Operating Officer of Prologis, as the keynote interview at Connect Industrial Midwest— taking place Tuesday afternoon, March 10, 2026, at Joe’s Live in Rosemont, IL.
