• The Puget Sound industrial market remained solid at the end of 2019, with direct average asking lease rates at $0.77 per sq. ft. NNN, a 5.4% year-over-year increase. Total vacancy increased slightly from Q3 2019 to 5.5%, an impressive showing considering that over 1.4 million sq. ft. was delivered in the fourth quarter.
  • After three perplexing quarters, the Kent Valley industrial market soared during Q4. There were nine new 100,000+ sq. ft. move-ins, a definite signal of the area’s desirability. Net absorption for the quarter totaled 438,977 sq. ft. The direct average asking lease rate rose 6.7% year-over-year to $0.67 per sq. ft. Total vacancy hovered around 5.7%.
  • Regional investment sales for the quarter totaled $454.1 million, bringing the 2019 total to $1.46 billion, a slight decrease from 2018. The lack of a noticeable surge prior to the new Washington State excise tax policy—which goes into effect in 2020—suggests that industrial investors will continue to respond to market fundamentals rather than policy decisions.