The Pacific Northwest industrial market saw renewed volatility in Q2, with net absorption turning negative at -1.38 million SF and vacancy rising to 8.6%-a one-year high. Despite weaker tenant demand, average annual NNN rents increased to $14.47/SF, reflecting landlord confidence or pricing discipline for newer assets. Sale prices declined to $224.45/SF from $233.00 in Q1, indicating recalibrated investor expectations.
While macroeconomic uncertainty and rising vacancies persist, long-term industrial fundamentals remain strong. Overlaying this is a historic U.S. trade deficit contraction, driven by falling imports and record exports. This shift complicates logistics but may benefit the region’s export-driven base and support industrial leasing in the year’s second half.