Industrial markets in the Pacific NW are adjusting but remaining steady. Vacancy rates are around 7% in the 6-county region along the I-5 corridor (Arlington to Vancouver, WA). Leasing activity slowed in the first quarter but is picking up in the second. New construction is active, but the project pipeline is diminishing due to high land price expectations, stabilized rental rates, and continued high construction costs. This trend is expected to continue  into 2025, frustrating developers and land sellers. Large land parcels are hard to find, pushing developers toward infill assemblages, land use changes, or full site redevelopment. Demand for IOS properties is slowing, and small owner-user facilities’ demand is leveling off.