SEATTLE, May 4, 2016 – The industrial sector in Seattle (Kent Valley) and Eastside markets saw high demand first quarter 2016, spurred particularly by the high tech industry according to the latest industrial market reports from Cushman & Wakefield/Commerce.
“Seattle and the Eastside both had an interesting start to the year in terms of their reaction to market trends,” said Dave Magee, market leader – Washington region with Cushman & Wakefield/Commerce. “Based on early numbers, this could be a record breaking year in terms of investment activity. We are seeing big demand from international investors who are looking at both Kent Valley as well as the Eastside due to their low vacancy and rising asking rental rates.”
The Eastside overall vacancy rate was 6.9 percent, down 3.3 percentage points from first quarter of last year. Overall absorption was negative 318,429 square feet, partly due to B/E Aerospace vacating 131,406 square feet at Marine View Technology Center. Although four new buildings totaling 230,378 square feet were brought online first quarter, expect land prices to remain high due to limited availability for development. The supportive innovative culture, improved flex space, and sufficient housing will continue to be a draw for high-tech companies.
Kent Valley’s vacancy was 5.8 percent during first quarter, remaining fairly consistent compared to this time last year. Overall absorption was 100,020 square feet, with the largest lease transaction being Helly Hansen’s signed lease of 172,105 square feet at SeaPort Logistics Center. Kent Valley saw five buildings, totaling 754,483 square feet, completed first quarter. By year end, nearly 1.4 million square feet of industrial product will come online; however, despite the surplus, industrial space will remain in high demand as leasing activity continues to rise with rental rates increasing.
About Cushman & Wakefield/Commerce
Cushman & Wakefield/Commerce operates the Cushman & Wakefield business in Idaho, Nevada, Utah and Washington. The firm partners with its sister company Cushman & Wakefield/NorthMarq to provide innovative commercial real estate solutions to occupier and investor clients, offering transaction services, capital markets services, occupier and investor services, and real estate advisory. Together the firms manage 52 million sq. ft. of retail, industrial, and office assets, have transaction revenues of more than $2 billion, and employ more than 750 professionals. Learn more at www.comre.com.
About Cushman & Wakefield
Cushman & Wakefield is a leading global real estate services firm that helps clients transform the way people work, shop, and live. The firm’s 43,000 employees in more than 60 countries provide deep local and global insights that create significant value for occupiers and investors around the world. Cushman & Wakefield is among the largest commercial real estate services firms with revenue of $5 billion across core services of agency leasing, asset services, capital markets, facility services (C&W Services), global occupier services, investment & asset management (DTZ Investors), project & development services, tenant representation, and valuation & advisory. To learn more, visit http://www.cushmanwakefield.com or follow @CushWake on Twitter.