The Puget Sound industrial market enters the year steady, not soft – with clearer price discovery, slower decision cycles, and a sharper focus on fundamentals.

The Puget Sound industrial market entered 2025 with a mix of headwinds and opportunities, and as we close out the year it’s fair to say the picture is one of cautious stabilization. Vacancy rates rose meaningfully.

I write these updates looking back on the last 60 days specifically. What has transpired and changed over the preceding 60 days? Well, the last 60 days have been interesting.

Q2 in Puget Sound’s industrial market brought quiet strength – or maybe just… quiet. Vacancy held at 7.2%, matching Q1’s range, and availability stayed near 9%, with subleases steady.

The industrial real estate market in the greater Seattle-Tacoma area continues to evolve as we enter 2025. After years of record demand, vacancy rates for industrial properties.

In Q4 2024, the Puget Sound industrial market reported an 8.8% vacancy rate, with a negative net absorption of 1.4 million square feet, indicating a rebalancing of supply and demand.

Regardless of your political stance, one assumes that a real estate developer in the oval office must be good for real estate, right? I don’t believe it is that simple, but I suppose we’ll find out soon enough.

The amount of indecision in the marketplace is palpable and doesn’t appear to be improving quickly. It’s not all doom and gloom though. Forecasts for activity in the market appear to be improving.