Sales activity involving warehouse product in the Seattle-Bellevue region jumps in 2018
February 07, 2019
- In 2018, the Seattle area saw over $2.1 billion in warehouse assets traded. This represents a 150.2 percent increase in transaction volume year-over-year, more than twice the nation’s 62.1 percent increase between 2017 and 2018.
- REITs and institutional investors were both major contributors to this deal activity. Both groups made large purchases of fully leased warehouse product that is well-situated to strategically serve the persistent demand from last-mile and logistics tenants.
- Industrial warehouse product traded at an average price per square foot of $164 in 2018. This represents a 29 percent increase year-over-year. Over the last five years, the average price per square foot has risen 92.9 percent in the Seattle area. This has far outpaced the national rate, which has increased 41.4 percent over the same time period.
- With the Seattle-Bellevue region adding around 1,000 new residents per week since 2010, the area has seen unprecedented expansion of population and employment, leading to the economic gains that have helped support strong demand for e-commerce and last mile users. With Seattle becoming an increasingly popular location to hire well-paid tech industry positions while remaining more affordable than competitive areas such as San Francisco and Silicon Valley, consumer spending power is strong.
Source: JLL Research, Real Capital Analytics