According to a recent report by Kidder Mathews, there has been a modest increase in activity within the industrial markets over the past six months. This uptick began in Q2 and has continued through Q3.
Inflation, which reached its peak at 10.1% in June 2022, has since decreased to 3.1% as of August 2024 due to lower fuel prices. However, core inflation (excluding food and energy) remains high at 4%.
As of Q3 2024, regional vacancy for industrial properties is at 7.6%, up from both the previous quarter’s rate of
7.4% and the low point of
3.6% seen in Q4 of
2022.
Construction activity also saw an increase from
four million square feet (s.f.)in Q2 to seven-and-a-half million s.f.inQ3,
across twenty-three projects.
The majority (72%)of this construction activity is taking place in Pierce County,
with one notable project being Bridge Point Tacoma II.
Preleasing rates are currently at
47%, with nearly all leases located within Pierce County projects.
Overall,the Seattle Industrial Market continues its upward trend as evidenced by these latest statistics reported on Connect CRE .
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