Developers in Seattle continue to build further south of the industrial core in Pierce and Thurston County
Developers remain bullish on the Seattle industrial market and are building speculative projects further south in Pierce and Thurston County.
December 04, 2019
- Developers remain bullish on the Seattle industrial market and are building speculative projects further south in Pierce and Thurston County. Of the 7.1 million square feet currently under construction, 84% is in Pierce and Thurston County. This does not come as a surprise since land has become exceedingly scarce in King County for sites that can accommodate buildings over 100,000 square feet.
- In this land constrained market, the City of Kent has also been plagued with a moratorium on industrial developments, where the only few available large development sites in King County are located.
- Landlords have been taking advantage of tight market conditions and have been pushing rental rates on large Class-A industrial spaces in the Kent Valley. Tenants have been facing sticker shock on renewals and have decided to migrate south to Pierce and Thurston County where they can find less expensive options and trailer parking the Kent Valley doesn’t offer.
- Dupont, Lacey and Frederickson, the once build-to-suit markets, now have over 2.8 million square feet in speculative development that has not been leased yet. There is also 4.8 million square feet proposed in Frederickson and Lacey alone. As we see current projects lease-up, these proposed projects will likely break ground in 2020.
Source: JLL Research