The Pacific Northwest industrial market has exhibited some renewed volatility in Q2, following the strong rebound in Q1 of this year. Net absorption swung negatively to approximately -1,455,070 square feet, reversing the prior quarter’s gains and pushing the vacancy rate to 8.60%, the highest point in over a year. Despite weaker tenant demand, average annual NNN asking rents increased to $14.47 per square foot, suggesting that landlords remain confident in long-term fundamentals or are holding firm on pricing for newer product. Meanwhile, average sale prices declined to $224.45 per square foot, down from $233.00 in Q1, signaling some recalibration in investor expectations. As the region grapples with rising availabilities and macroeconomic uncertainty, we maintain a measured outlook, recognizing both the strength of industrial demand fundamentals and the headwinds presented by elevated vacancy and muted absorption.