Puget Sound Industrial Rents Reach Record Highs Due to Increased Demand

PugetTenant demand for high-quality, functional space combined with limited supply has driven Puget Sound industrial rents to record levels, according to a new Colliers report. Asking rents in the first quarter of 2023 have increased 26.7% year-over-year from $0.85 to $1.08 per square foot triple net, indicating a strong market trend across the region’s submarkets and sectors.

Net absorption for the quarter was -366,000 square feet despite several large tenants moving into space; however, Colliers considers this an anomaly and forecasts an above-average year for net absorption in 2023 that won’t reach 2021 or 2022’s records but will still be notable nonetheless. Vacancy also increased slightly in Q1 to 3.7%, attributed mainly due two buildings delivering without any leasing activity taking place yet.

Kent Valley saw the highest asking rent increase at 31.8%, followed by Pierce County at 19..5% and Northend at 18..8%. According to Colliers’ predictions most industrial leasing activity this coming year will take place on new supply as well as 2nd generation spaces located within Pierce & Snohomish Counties respectively.

About the Publisher:
Steve Griffin is based in sunny Palm Harbor, Florida. He’s an accountant by profession and the owner of GRIFFIN Tax and REVVED Up Accounting. In addition, Steve founded Madison Avenue Technology. With a strong passion for commercial real estate, he’s also dedicated to keeping you up to date with the latest industry news.

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