Q3 2024 Industrial Market Report
INDUSTRIAL MARKET OVERVIEW
In Q3 2024, the Puget Sound industrial market saw a net absorption decline to -3.2 million square feet, down from -2.1 million square feet in the previous quarter, reflecting a continued softening in demand. The vacancy rate rose slightly to 7.8%, up from 7.4% in Q2, indicating increased space availability. Additionally, the average annual NNN asking rent decreased to $14.26 per square foot, down from $14.82. These trends suggest ongoing adjustments in the market as tenant requirements evolve in response to broader economic conditions
| MARKET INDICATORS | Q3 2024 | Q2 2024 | Q1 2024 | Q4 2023 | Q3 2023 |
|---|---|---|---|---|---|
| ↓ 12 Mo. Net Absorption (SF) | (3,243,430) | (2,142,214) | (2,688,054) | (2,232,454) | (692,294) |
| ↑ Vacancy Rate (%) | 7.80% | 7.38% | 7.20% | 6.30% | 5.70% |
| ↓ Avg NNN Asking Rate PSF (Annual) | $14.26 | $14.82 | $14.85 | $14.83 | $14.84 |
| ↑ Sale Price PSF | $238.00 | $224.11 | $289.67 | $212.72 | $230.38 |
| ↑ Cap Rate (%) | 5.72% | 5.50% | 5.80% | 5.10% | - |
| ↑ Under Construction (SF) | 10,910,795 | 11,400,000 | 6,713,709 | 7,786,821 | 6,787,358 |
| ↑ Inventory (SF) | 362,293,871 | 360,036,235 | 355,266,605 | 354,650,713 | 352,343,906 |