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Q3 2021 Puget Sound Industrial Market Report

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IndustrialReport

Tenants in all industries, but especially e-commerce, continue to compete for dwindling space around Puget Sound, reflected in regional vacancy dropping from 6.8% to 5.2% and absorption again surpassing 3 million square feet. Most of this activity continues to occur in the area stretching south from Renton/Tukwila down to Thurston County, which saw 88% of this quarter’s warehouse absorption (equating to 2.1 million square feet). That said, scarcity has continued to slowly push demand north of the urban core, with the Northend absorbing a healthy 550,000 square feet this quarter and now seeing 950,000 square feet of space under construction. Warehouse rents increased 3.8% from $0.80 to $0.83 per square foot across the market, and with vacancy dropping significantly across the region they do not appear to have peaked yet. Several large investment sales closed this quarter (including 310 acres in Frederickson Pannattoni purchased from Boeing for $200 million), totaling $603 million and putting the year-to-date total just shy of $1.8 billion. 


IndustrialReport

Q3 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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