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Q1 2021 Puget Sound Industrial Market Report

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IndustrialReport
With 3.53M sq. ft. of net absorption in the first quarter of 2021, any remaining Covid-related uncertainty surrounding Industrial product in Puget Sound was quickly erased, likely turning to optimism extending into the foreseeable future. In-line with the rest of the US, warehouse space supporting e-commerce and 3PL continued to carry the region, accounting for 96% of that absorption number and fueling aggressive rent growth (2.8% to $0.80/sf over the quarter, potentially growing another 6% by 2022). Kent Valley warehouse space saw 1M sq. ft. of net absorption, and Pierce County space saw 1.78M sq. ft. of net absorption, pushing this quarters aggregate amount to the highest on record. The Northend warehouse market also saw strong positive absorption for the second straight quarter, seeing 285K sq. ft. of space absorbed. Though deliveries are down 56% over the quarter at 595K sq. ft., construction on the 5.74M sq. ft. pipeline has continued generally unabated with 3.6M sq. ft. set to deliver next quarter. Investment sales by price volume increased over the quarter (119%) and year (168%) to $862M, paced by Alexandria Real Estate’s $200M purchase of Canyon Park Business Center in Bothell (a flex asset), and a dearth of warehouses trading hands. 

IndustrialReport

Q1 2021 Puget Sound Industrial Market Report

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Jacob Pavlik

Research Manager

Seattle

Jacob Pavlik joins the Colliers team after working in the Economic Development and Planning departments for the cities of Hillsboro, Oregon and Alexandria, Virginia, respectively.  At Colliers, he leads a team of researchers to  collect, analyze, and synthesize market data for Puget Sound and Portland. He loves the challenge of taking complex data and making it easily digestible for a wide audience. He assists brokers with research specific to their client's needs, including geovisualizatoin and micromarket analysis.

His authentic passion for commercial real estate is seen most clearly when Jacob explores his local urban ecosystem and travels to new cities around the world to see how they function and relate to each other. He likes to see the built environment adapt to the changing needs, desires, and behaviors of the people who populate it. These functions fit perfectly into Jacob's role as Research Manager, telling the story of how commercial real estate in the Pacific Northwest evolves over time.

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