A new report from Cushman & Wakefield reports steady demand for premium space in Seattle continued in the 3rd quarter, but could be at a crossroads. The Seattle industrial market reported a vacancy rate of 3.7% in Q3, down 210 basis points year-over-year, but remained stable compared to Q2. With nearly 1.3 million square feet (msf) of space due to be delivered vacant by the end of the year, coupled with current market uncertainty, vacancy may start to reverse course.
Aborption in Seattle decreased to -353,000 square feet, a substantial drop from +3.1 msf a year ago, however, year-to-date absorption remains well in the black at +4.1 msf. Seattle industrial asking rents increased an average of $0.95 per square foot on a monthly triple-net basis, a 14.4% annual increase.
The region’s industrial market has delivered 2.6 msf of new space in 2022, and approximately 10.3 msf was under construction by the end of the 3rd quarter. Meanwhile, leasing activity has slowed through the year, with activity dropping each quarter.
Mark comes to ConnectCRE with an extensive background as a business and news reporter in San Francisco radio, as well as 35 years as a traffic reporter on several stations including KGO, KNBR, KCBS and KFRC. As a business reporter, Mark covered the tech world in Silicon Valley where he became familiar with real estate transactions in the hot Bay Area marketplace. He attended San Jose State University with a BA in Radio and TV Broadcasting and currently resides in the Lake Tahoe area where he gets to frequently enjoy all of his favorite activities: Golfing, Fishing, Hiking and Skiing.
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