November 09, 2021 (SEATTLE, WA) –

The Puget Sound-area industrial vacancy rate fell to 4.6% in the third quarter from 5.4% a year ago, according to a report by Lee & Associates.

That is still higher than the national average, the report said, but a sign of strength for the local market due to "massive output" from developers, with nearly 10.2 million square feet under construction in Q3. That's more than double the space that was in development in Q3 2020, when the vacancy rate was higher.

Sales also remain strong thanks to widespread demand for Seattle-area industrial space, said Chris Peterson, principal at Lee & Associates

“We expect the industrial trends in leasing and sales to continue,” Peterson said. “Part of that is due to the hot market rent growth and the rental rate growth climbing faster than it ever has. Seattle is a place a lot of people want and need to be, so there is strong investment from both the institutional and local groups.”

The average rental rate is close to $12 per square foot and the outlook remains strong with a very tight market predicted.