There is no letup in demand for industrial space in the Puget Sound region, as vacancy numbers continue to plunge and rent values remain at an upward trajectory. A new report from Cushman & Wakefield indicates a third quarter annual vacancy rate decrease of 170 basis points, now standing at 3.6% while monthly industrial rents in Q3 climbed to $1.03 per square foot, a 9.6% increase year-over-year.

Meanwhile, the region’s employment outlooks remains solid as the greater Seattle area reached 2.1 million jobs in the third quarter, up nearly 90,000 year-over-year.

Other numbers contributing to the positive industrial outlook: The construction pipeline is robust with nearly 3 million square feet added in 2022 and an additional 14.7 million under construction and 24.9 million proposed. Leasing activity in the region has also been strong through three quarters, with nearly 17 million square feet leased year-to-date, including renewals.