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Q4 2022 Puget Sound Industrial Market Report

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IndustrialReport
Sale volume dropped 23% to $1.9 billion from $2.5 billion last year, a direct result of the Federal Reserve raising interest rates to reduce inflation. The leasing market has been strong, although weaker than 2021. Rents have continued to increase across the region, but growth is weaker than the last two years, allowing tenants to catch up to market expectations and competitive demand. Almost 12 million square feet of new occupancy occurred in 2022, edging out 2021 as the top year for net absorption. Sixteen percent of the development pipeline that is currently under construction and expected to deliver next year has been pre-leased, leaving only 5.7 million square feet available. Given the significant net absorption of the past two years, this is unlikely to satisfy demand, resulting in rising rental rates and decreasing vacancy rates.

IndustrialReport

Q4 2022 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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