{"id":8479,"date":"2026-04-29T08:48:42","date_gmt":"2026-04-29T15:48:42","guid":{"rendered":"https:\/\/www.lee-associates.com\/northwest\/?p=8479"},"modified":"2026-08-07T11:48:09","modified_gmt":"2026-08-07T18:48:09","slug":"q1-2026-industrial-market-report","status":"publish","type":"post","link":"https:\/\/www.lee-associates.com\/northwest\/2026\/04\/29\/q1-2026-industrial-market-report\/","title":{"rendered":"Q1 2026 Pacific Northwest Industrial Market Report"},"content":{"rendered":"
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\n\t\t\t\t\t\tINDUSTRIAL MARKET OVERVIEW<\/strong>\t\t\t\t\t\t<\/h3>\n\t\t\t\t\t\t<\/div>\n<\/div><\/div><\/div>
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Puget Sound\u2019s industrial market opened 2026 in continued recalibration as it digests prior supply. 12-month net absorption fell to (1.69M SF) from (910K SF) in Q4, pushing vacancy up to 9.71% from 9.3%, reflecting slower expansion and ongoing delivery absorption rather than a demand break. Asking rents equate to ~$1.23 PSF\/month ($14.72 PSF annually), while cap rates edged up to 5.85% and sales pricing softened to $243.90 PSF amid continued repricing. Tenants retain meaningful leverage given elevated availability, driving continued concessions and flexible deal structures as landlords compete for occupancy. Construction slowed to 2.5M SF from 3.6M SF, while inventory reached 369.2M SF. Overall, the market remains in controlled digestion, with pricing adjusting and conditions gradually stabilizing.<\/p>\n<\/div>\n<\/div><\/div><\/div>

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\n\t\t\t\t\t\t\t\t\t\t\t\t\t\n\t\t\t\t\t\t\t\tDownload Market Report to View More Details<\/a>\t\t\t\t\t\t<\/h4>\n\t\t\t\t\t\t<\/div>\n<\/div><\/div><\/div><\/div><\/div>
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MARKET INDICATORS<\/th>\nQ1 2026<\/strong><\/td>\nQ4 2025<\/strong><\/td>\nQ3 2025<\/strong><\/td>\nQ2 2025<\/strong><\/td>\nQ3 2025<\/strong><\/td>\n<\/tr>\n<\/thead>\n
\u2193 \u00a012 Mo. Net Absorption (SF)<\/td>\n(1,692,776)<\/td>\n(910,374)<\/td>\n(1,041,157)<\/td>\n(1,377,305)<\/td>\n(1,041,157)<\/td>\n<\/tr>\n
\u2191\u00a0 Vacancy Rate (%)<\/td>\n9.71%<\/td>\n9.30%<\/td>\n8.79%<\/td>\n8.60%<\/td>\n8.79%<\/td>\n<\/tr>\n
\u2191\u00a0 Avg NNN Asking Rate PSF (Annual)<\/td>\n$14.72<\/td>\n$14.67<\/td>\n$15.50<\/td>\n$14.47<\/td>\n$15.50<\/td>\n<\/tr>\n
\u2193 Sale Price PSF<\/td>\n$243.90<\/td>\n$246.00<\/td>\n$237.00<\/td>\n$224.45<\/td>\n$237.00<\/td>\n<\/tr>\n
\u2191 Cap Rate (%)<\/td>\n5.85%<\/td>\n5.80%<\/td>\n5.85%<\/td>\n5.60%<\/td>\n5.85%<\/td>\n<\/tr>\n
\u2193 Under Construction (SF)<\/td>\n2,540,773<\/td>\n3,616,267<\/td>\n5,487,421<\/td>\n5,413,360<\/td>\n5,487,421<\/td>\n<\/tr>\n
\u2191 Inventory (SF)<\/td>\n369,192,909<\/td>\n367,996,015<\/td>\n365,023,177<\/td>\n365,958,421<\/td>\n365,023,177<\/td>\n<\/tr>\n<\/tbody>\n<\/table>\n

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\n\t\t\t\n\t\t\n\t\t\t\n\t\t\tVIEW NATIONAL MARKET REPORTS\t\t<\/span>\n\t\t\t<\/a>\n\t<\/div>\n<\/div><\/div><\/div><\/div>
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\n\t\t\t\n\t\t\n\t\t\t\n\t\t\tCLICK FOR MORE DETAILS FROM THIS REPORT\t\t<\/span>\n\t\t\t<\/a>\n\t<\/div>\n<\/div><\/div><\/div>
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<\/div><\/div><\/div>","protected":false},"excerpt":{"rendered":"

Puget Sound\u2019s industrial market opened 2026 in continued recalibration as it digests prior supply. 12-month net absorption fell to (1.69M SF) from (910K SF) in Q4, pushing vacancy up to 9.71% from 9.3%, reflecting slower expansion and ongoing delivery absorption rather than a demand break. Asking rents equate to ~$1.23 PSF\/month ($14.72 PSF annually), while cap rates edged up to 5.85% and sales pricing softened to $243.90 PSF amid continued repricing. Tenants retain meaningful leverage…<\/p>\n","protected":false},"author":244,"featured_media":8484,"comment_status":"closed","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[1084,1136],"tags":[1171],"class_list":["post-8479","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-industrial","category-market-report","tag-scott-hill"],"yoast_head":"\nQ1 2026 Pacific Northwest Industrial Market Report - Lee & Associates Pacific Northwest<\/title>\n<meta name=\"robots\" content=\"index, follow, max-snippet:-1, max-image-preview:large, max-video-preview:-1\" \/>\n<link rel=\"canonical\" href=\"https:\/\/www.lee-associates.com\/northwest\/2026\/04\/29\/q1-2026-industrial-market-report\/\" \/>\n<meta property=\"og:locale\" content=\"en_US\" \/>\n<meta property=\"og:type\" content=\"article\" \/>\n<meta property=\"og:title\" content=\"Q1 2026 Pacific Northwest Industrial Market Report\" \/>\n<meta property=\"og:description\" content=\"Puget Sound\u2019s industrial market opened 2026 in continued recalibration as it digests prior supply. 12-month net absorption fell to (1.69M SF) from (910K SF) in Q4, pushing vacancy up to 9.71% from 9.3%, reflecting slower expansion and ongoing delivery absorption rather than a demand break. Asking rents equate to ~$1.23 PSF\/month ($14.72 PSF annually), while cap rates edged up to 5.85% and sales pricing softened to $243.90 PSF amid continued repricing. Tenants retain meaningful leverage...\" \/>\n<meta property=\"og:url\" content=\"https:\/\/www.lee-associates.com\/northwest\/2026\/04\/29\/q1-2026-industrial-market-report\/\" \/>\n<meta property=\"og:site_name\" content=\"Lee & Associates Pacific Northwest\" \/>\n<meta property=\"article:publisher\" content=\"https:\/\/www.facebook.com\/nwleeassociates\/\" \/>\n<meta property=\"article:published_time\" content=\"2026-04-29T15:48:42+00:00\" \/>\n<meta property=\"article:modified_time\" content=\"2026-08-07T18:48:09+00:00\" \/>\n<meta property=\"og:image\" content=\"https:\/\/www.lee-associates.com\/northwest\/wp-content\/uploads\/sites\/74\/2026\/04\/Industrial-Q1-2026.png\" \/>\n\t<meta property=\"og:image:width\" content=\"924\" \/>\n\t<meta property=\"og:image:height\" content=\"627\" \/>\n\t<meta property=\"og:image:type\" content=\"image\/png\" \/>\n<meta name=\"author\" content=\"sthomson\" \/>\n<meta name=\"twitter:card\" content=\"summary_large_image\" \/>\n<meta name=\"twitter:creator\" content=\"@NWLeeAssociates\" \/>\n<meta name=\"twitter:site\" content=\"@NWLeeAssociates\" \/>\n<meta name=\"twitter:label1\" content=\"Written by\" \/>\n\t<meta name=\"twitter:data1\" content=\"sthomson\" \/>\n\t<meta name=\"twitter:label2\" content=\"Est. reading time\" \/>\n\t<meta name=\"twitter:data2\" content=\"2 minutes\" \/>\n<script type=\"application\/ld+json\" class=\"yoast-schema-graph\">{\"@context\":\"https:\\\/\\\/schema.org\",\"@graph\":[{\"@type\":\"Article\",\"@id\":\"https:\\\/\\\/www.lee-associates.com\\\/northwest\\\/2026\\\/04\\\/29\\\/q1-2026-industrial-market-report\\\/#article\",\"isPartOf\":{\"@id\":\"https:\\\/\\\/www.lee-associates.com\\\/northwest\\\/2026\\\/04\\\/29\\\/q1-2026-industrial-market-report\\\/\"},\"author\":{\"name\":\"sthomson\",\"@id\":\"https:\\\/\\\/www.lee-associates.com\\\/northwest\\\/#\\\/schema\\\/person\\\/931b1b7e88eab37109aec4c62a449a56\"},\"headline\":\"Q1 2026 Pacific Northwest Industrial Market Report\",\"datePublished\":\"2026-04-29T15:48:42+00:00\",\"dateModified\":\"2026-08-07T18:48:09+00:00\",\"mainEntityOfPage\":{\"@id\":\"https:\\\/\\\/www.lee-associates.com\\\/northwest\\\/2026\\\/04\\\/29\\\/q1-2026-industrial-market-report\\\/\"},\"wordCount\":472,\"publisher\":{\"@id\":\"https:\\\/\\\/www.lee-associates.com\\\/northwest\\\/#organization\"},\"image\":{\"@id\":\"https:\\\/\\\/www.lee-associates.com\\\/northwest\\\/2026\\\/04\\\/29\\\/q1-2026-industrial-market-report\\\/#primaryimage\"},\"thumbnailUrl\":\"https:\\\/\\\/www.lee-associates.com\\\/northwest\\\/wp-content\\\/uploads\\\/sites\\\/74\\\/2026\\\/04\\\/Industrial-Q1-2026.png\",\"keywords\":[\"scott hill\"],\"articleSection\":[\"Industrial\",\"Market Report\"],\"inLanguage\":\"en-US\"},{\"@type\":\"WebPage\",\"@id\":\"https:\\\/\\\/www.lee-associates.com\\\/northwest\\\/2026\\\/04\\\/29\\\/q1-2026-industrial-market-report\\\/\",\"url\":\"https:\\\/\\\/www.lee-associates.com\\\/northwest\\\/2026\\\/04\\\/29\\\/q1-2026-industrial-market-report\\\/\",\"name\":\"Q1 2026 Pacific Northwest Industrial Market Report - 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