Report: Seattle Industrial Demand Remains Solid Amid Headwinds

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.