The Pacific Northwest industrial market is showing signs of improvement in Q1 2025. Net absorption was strong in the first quarter, which helped to push the vacancy rate down to 7.60%, which was nearly half a point higher in Q4 2024. However, average annual NNN asking rates remain steady with no significant change at $14.30 per square foot. Deliveries in the market were limited, and several projects continue to delay start with uncertainty in economic conditions, highlighting some hesitation with how 2025 will unfold. We continue to signal cautious optimism as the market adapts to shifting economic conditions – perhaps highlighted through the drop 0.40% drop in the Cap Rate average compared to the Q4 2024.