Jul 25, 201602:00 PMBlog
Industrial real estate update
Washington state’s largest industrial market -- South King County -- continues to perform at a steady pace, with the second highest net absorption rate for second quarter and just under 1.1 million square-feet for the year, according to new data from Kidder Mathews, the largest independent commercial real estate firm in the market. Phase III of Des Moines Creek Business Park is the only project currently under construction in the south end of the county.
In contrast, Thurston County -- the smallest industrial marketplace in the greater Puget Sound region -- has been one of the most active in 2016, with a vacancy rate dropping from 5.8 percent to 4.05 percent last quarter as 305,770 sq. ft. was filled. Simpson Door taking 75,000 sq.ft. at Deschutes industrial Park was the largest lease, with four construction sites currently active.
The largest in the Capital area is Medline’s 700,000 sq.ft. distribution center in Lacey, scheduled to open early next year. Building 3 of Lacey Business Park is about 75,000 sq.ft. and Kaufman Brothers has two small projects underway. IDS has 97 acres under contract at Hogum Bay Logistics Center, where up to 1.5 million sq.ft. can be built. This is also slated for 2017 delivery.
Pierce County’s industrial market has been the most active for development, with activity in Sumner, Fife, Lakewood and DuPont, with five projects under construction now. During second quarter, three projects were completed without being totally leased and there are still five underway. Vacancy rate in Pierce County grew slightly to 6.87 percent. Bargreen Ellison to Fife Commerce Center, Expeditors in Sumner and Helly Hansen to SeaPort Logistics Center were the three largest lessees last quarter.
You can see full details of the Kidder Mathews Industrial Report at this link.