More than 620K SF of product delivered, primarily in the Puyallup/S Hill Industrial submarket.
Development activity in Thurston County has significantly increased since Q3 2019 with 58% of the development pipeline, or 3.6M SF, currently under construction. Absent available land near I-5 to build warehouses, industrial developers were forced to consider developments south of the Puget Sound. With Eastside vacancy at 2.1% and Northend vacancy at 4%—both well below the regional 6.3% vacancy—there is incredibly limited supply of available product to satisfy the growing demand for warehouse space. The coronavirus pandemic severely constricted investment volume in the last half of the quarter. January saw 82% of the region’s quarterly sales by value, and 84% by size, although this is heavily influenced by Prologis’ two portfolio purchases that month.