Snapshots

Seattle-Bellevue: Investors continue to be bullish on the Puget Sound’s red hot industrial sector

National and international investors continue to seek industrial opportunities in the Puget Sound where there is a robust economy and the population continues to grow a rapid pace. Vacancy is still holding below the historical average and rents continue to climb, well above the national average.

January 28, 2020
  • Portfolio transactions have been the main driver of sales volume in the region where institutional investors are acquiring last-mile distribution centers. Mostly notably, Colony Capital’s purchase of eight warehouses from Dermody Properties for just over $202 million. 
  • The industry continues to consolidate through acquisitions. In 2019 Blackstone closed on Global Logistic Properties, adding over 3.7 million square feet to their Puget Sound portfolio, while Prologis is set to close on Industrial Property Trust in 2020, adding another 1.3 million square feet to their local portfolio. 
  • We have seen historically low cap rates over the last two years as pricing has nearly doubled since 2012. In December of 2019, the Black Creek Group closed on the fully leased North Auburn Logistics for just over $52 million or $203 p.s.f. at a 3.8% cap rate.