Seattle-Tacoma Industrial Investment Forecast
Industrial Demand Bolstered by Rising Imports and Supply Chain Crunch at Ports
Substantial shipping activity and e-commerce create opportunities. As the headquarters for multiple prominent technology firms Seattle-Tacoma's economy has recovered steadily since 2020 contributing to a rising median household income and a 4.3 percent increase in employment last year. These factors are improving consumer demand which has outpaced production capacity that was limited by shutdowns and a raw materials shortage. The resulting bottlenecks at ports caused a rush for industrial space generating a need for additional nearby warehouses to store both imports and retailers enlarging safety stocks. This situation has created opportunities for developers and bolstered the metro's construction pipeline. One such project a 2.8 million-square-foot Amazon fulfillment center in Arlington is scheduled for completion in 2022. The facility and a collection of other projects will translate to an elevated year for deliveries. Still net absorption will surpass openings pushing asking rents to a record high.