Jun. 23, 2008 at 11:46am

Commercial vacancies inch up

Pierce County's office and industrial vacancy rates increased during the second quarter of 2008, according to a Colliers International report released today on Puget Sound's commercial real estate market.

The second quarter of 2008 has been the weakest in overall net absorption of industrial properties since the first quarter of 2003, according to the report. In addition, vacancy of industrial space has increased 130 basis points - or 1.3 percent. The completion of a 388,000-square-foot building in the AMB Riverfront Industrial Park in Puyallup contributed to the increase in vacancy. The area's positive absorption should increase when Whirlpool completes its 900,000-square-foot distribution facility in Frederickson, which began construction during the second quarter.

Office vacancy rates remained steady during the year and increased by 15 basis points during the second quarter. The report noted the proposal for the state's first Revenue Development Area in downtown Tacoma, a project that is expected to draw $400 million  of new office and parking developments during the coming years.

| Email Tyler