Q3 2026 Industrial Market Report
INDUSTRIAL MARKET OVERVIEW
Puget Sound’s industrial market showed signs of improved demand in Q3, though vacancy continued to edge higher. Twelve-month net absorption improved to (1.67M SF) from (2.78M SF) in Q2, while vacancy rose to 10.35% from 10.30%, reflecting continued availability across the market. Average NNN asking rents increased to $15.06 PSF annually, and sales pricing rebounded to $221.76 PSF from $198.96. Cap rates compressed to 5.36% from 6.65%, while construction slowed to 1.35M SF from 1.88M SF. Inventory reached 369.76M SF. Tenants retain leverage as landlords compete for occupancy. Overall, absorption improved and new development moderated, though elevated vacancy continues to shape market conditions.