Large industrial users have been uprooting from King County to South Pierce and Thurston County given underlining costs
In recent years Seattle has seen a significant number of industrial users grow and migrate out of King County southward to Lakewood, Dupont, Frederickson and Lacey
June 12, 2019
- In recent years we have seen a significant number of industrial users grow and migrate out of King County southward to Lakewood, Dupont, Frederickson and Lacey. In total, over 6.2 million square feet of industrial tenants have made this move over the past two years. This can be attributed to a number of things including cost savings, labor, access to I-5 and the ability to find scale.
- Frederickson is one of the newest and largest developed industrial regions in the Puget Sound. It’s zoned for heavy manufacturing and has industrial capacity, utilities and infrastructure now in place. We have recently seen build-to-suit’s in Frederickson for Ashley Furniture and BestBuy which both relocated from the Kent Valley.
- With many notable infrastructure enhancements and close proximity to I-5, Lacey has also seen a large influx of tenants relocate from the Kent Valley and Tacoma. Lacey also capitalizes on a skilled labor force, low cost of living, reasonable traffic and affordable housing.
- Tenants relocating south can be contributed to multiple factors but lease rates are most evident. Kent Valley’s average shell rate was $0.63 vs $0.49 in South Pierce and Thurston County over the last two years.
- Although lower asking rates and build-to-suit opportunities have attracted large users South, last mile and third party logistics have contributed to record low vacancies in the close-in market . Proximity to ports, high demand for accelerated delivery times, and land scarcity all bear weight when finding a new location.
Source: JLL Research