The Pacific Northwest industrial market continued to face headwinds in Q3 2025, with vacancy climbing to 8.79% as sluggish tenant demand and a wave of second-generation space returned to the market. Net absorption remained negative, though at a slower pace than Q2, suggesting some stabilization. Average annual NNN rents held firm at $15.50/SF, as newer Class A assets kept pricing buoyant despite softer demand in older product. Investment sales volume increased, with pricing drifting lower and cap rates ticking upward. Tariff-driven cost pressures on construction and imported goods added another layer of uncertainty, affecting both development pipelines and tenants reliant on trade. Even so, Washington’s strong trade corridors and export-driven user base provide a foundation for cautious optimism as the market looks to regain balance heading into 2026.