Seattle-Tacoma Industrial Market Report
Metro Positioned for Moderate Shift in Vacancy;
New Tax Bolsters Leasing Outside City of Seattle
Industrial users expand local capabilities. Relatively isolated, Seattle represents a regional distribution hub for the Pacific Northwest and states east of Washington, making it an essential market for many online retailers and logistics firms. The rise in e-commerce usage during the health crisis has motivated many of these companies to bolster their existing footprints, growth that supported the absorption of 2.5 million square feet over the past year ended in March. With container and air freight volumes elevated at the metro’s seaports and international airport during the early months of 2021, positive momentum is expected to continue in the near term. Steady demand for space will position the market’s vacancy rate to remain on par with the national average, providing operators the impetus to push asking rents.