INDUSTRIAL MARKET OVERVIEW

Puget Sound’s industrial market shows signs of continued slow recovery as we mark the first have of 2026. 12-month net absorption fell further to (2.01M SF) from (1.78M SF) in Q1, pushing vacancy up to 10.01% from 9.71%, reflecting slower expansion and ongoing delivery absorption rather than a demand break. Asking rents showed a slight increase to ~$1.24 PSF/month ($14.83 PSF annually), while cap rates edged up to 6.30% and sales pricing further softened to $211.71 PSF. Tenants retain meaningful leverage given elevated availability, driving continued concessions and flexible deal structures as landlords compete for occupancy. Construction slowed to 1.93M SF from 2.57M SF, while inventory reached 369.65M SF. Overall, the market remains in controlled digestion, with pricing adjusting and conditions gradually stabilizing. READ MORE >