prepared by norman ives designated broker · deliveries sf 6.7 m 3,604,600 4,123,165 7,489,172 2007...
TRANSCRIPT
PREPARED BY
Norman Ives
Designated Broker
INDUSTRIAL MARKET REPORT
Market Key Statistics 2
Leasing 3
Rent 7
Construction 9
Under Construction Properties 11
Sales 13
Sales Past 12 Months 14
Economy 16
Market Submarkets 19
Supply & Demand Trends 26
Rent & Vacancy 28
Sale Trends 30
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12 Mo Deliveries in SF
6.7 M12 Mo Net Absorption in SF
953 KVacancy Rate
4.9%12 Mo Rent Growth
5.9%Seattle's industrial market is one of the most active in thecountry, thanks to a bustling economy and one of thelargest ports on the west coast. Subsequently, the mostactive submarkets for development are in proximity to theports, especially the Port of Tacoma. Despite a busydelivery schedule recently and an onslaught of move-outs in early 2019, vacancies are still lower than lastcycle's trough and rent growth is well above the historicalaverage. The combination of these large availabilitiesand a highly speculative pipeline could have an adverse
effect on vacancy and rent growth in the near termthough.
Investment activity has been strong over the past severalquarters, and much of it can be attributed to largeinstitutional deals. Cap rates are well below the nationalaverage and have compressed significantly this cycledue to a significant increase in pricing. Sales volume in2019 is characterized by large trades, including nationalportfolio deals.
KEY INDICATORS
Market RentVacancy RateRBACurrent Quarter Availability RateNet Absorption
SFDeliveries SF
UnderConstruction
$9.935.8%208,852,587Logistics 7.9% (720,445) 1,166,939 2,513,660
$10.302.6%87,331,978Specialized Industrial 3.5% (81,023) 0 0
$18.645.1%31,154,009Flex 6.0% (1,281) 0 0
$10.854.9%327,338,574Market 6.6% (802,749) 1,166,939 2,513,660
ForecastAverage
HistoricalAverage
12 MonthAnnual Trends Peak When Trough When
5.7%6.2%1.6%Vacancy Change (YOY) 9.6% 2003 Q2 2.9% 2017 Q4
1,834,0102,756,097953 KNet Absorption SF 8,255,244 2007 Q1 (4,964,912) 2003 Q2
4,123,1653,604,6006.7 MDeliveries SF 7,489,172 2007 Q1 133,370 2012 Q1
2.5%3.2%5.9%Rent Growth 9.4% 2017 Q1 -2.5% 2010 Q3
N/A$1.0B$2.4 BSales Volume $2.4B 2018 Q4 $207.0M 2010 Q2
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Strong local consumption and regional trade with Asiahave helped keep industrial demand robust this cycle.Net absorption has met or exceeded 3 million SF everyyear since 2012, but there are some causes for concernin the near term. An onslaught of logistics move-outsacross the metro contributed to an uptick in the vacancyrate in 19Q1 and a highly speculative pipeline addssupply pressures. Around 70% of under constructionspace is still available for lease, and most of it is logisticsspace concentrated in South King and Pierce counties.Vacancy in flex and specialized space remains tighterthan logistics space, as demand abounds anddevelopment is limited.
Development activity has been especially dynamic nearthe ports. The alliance of the ports of Seattle andTacoma in 2015 was established in part to fight off fiercecompetition from Canadian ports and it has paiddividends. Container volume is on the rise and this hasspurred logistics demand in the area, especially near thePort of Tacoma. Developers continue to inundate theseareas with new inventory, which should have an outsized
effect on logistics vacancy specifically.
Submarkets like Port of Tacoma/Fife and Puyallup/S Hilloffer developers lower land costs and tenants a discountto close-in submarkets. Net absorption has been amongthe highest in the metro in these areas over the past fiveyears and most new leases were in large distributioncenters or warehouses. For example, StryderMotorfreight took 100,000 SF at IPT Tacoma LogisticsCenter in Port of Tacoma/Fife in 19Q1. The 1.1 million-SF complex opened in 18Q2 and it remains nearly 50%available for lease as of 19Q3.
Last-mile distribution hubs in more central areas arealso seeing a lot of construction activity and tenantdemand. Submarkets like Auburn, Kent Valley N andSeatac/Burien offer strategic locations roughly halfwaybetween both ports and close to the airport. In Auburn,Young's Market signed on for all of the space at the288,000-SF DCT Hudson Distribution Center, whichopened in 19Q2. The wine distributor has had a majorpresence in Washington state since 1999.
NET ABSORPTION, NET DELIVERIES & VACANCY
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VACANCY RATE
AVAILABILITY RATE
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12 MONTH NET ABSORPTION SF IN SELECTED BUILDINGS
3rd QtrBuilding Name/Address Submarket Bldg SF Vacant SF
1st Qtr 2nd Qtr 4th Qtr 12 Month
Net Absorption SF
Port of Tacoma/Fife Ind 428,228 0 0 428,228 0 0 428,228DCT Blair Distribution Center (1)
Port of Tacoma/Fife Ind 542,750 202,750 0 340,000 0 0 340,000DCT Blair Distribution Center (2)
Auburn Ind 287,832 0 0 287,832 0 0 287,832DCT Hudson Distribution Center
Seatac/Burien Ind 265,922 0 0 0 0 0 265,922Des Moines Creek BP Phase IV…
Woodinville Ind 275,710 39,000 0 236,710 0 0 236,710LogistiCenter at Woodinville
Puyallup/S Hill Ind 229,016 0 62 64,749 0 0 229,016IPT Sumner Distribution Center
Puyallup/S Hill Ind 228,256 0 61,708 166,256 0 0 227,964Valley Distribution Ctr
Fort Lewis Ind 467,208 208,370 76,000 0 (208,370) 0 208,421Lakewood-Tacoma Gateway
Kent Valley N Ind 229,500 0 0 0 0 0 200,445Northwest Corporate Park
Seatac/Burien Ind 246,073 0 0 0 0 0 197,928Des Moines Creek BP Phase IV…
Auburn Ind 261,553 92,293 0 0 0 0 169,260North Auburn Logistics
Kent Valley N Ind 155,264 0 0 0 0 0 155,264Pacific Gateway Business Park
Port of Tacoma/Fife Ind 280,525 136,724 100,432 43,369 0 0 143,801IPT Tacoma Logistics Center
Renton Ind 235,125 0 0 0 0 0 140,990Oakesdale Business Campus
Port of Tacoma/Fife Ind 319,806 159,806 0 0 0 0 128,695Prologis Park Tacoma
Puyallup/S Hill Ind 111,824 0 111,824 0 0 0 111,824Fife 70 East
E Pierce County Ind 202,000 100,000 0 0 0 0 102,000Fennel Creek Industrial Park
4,766,592 938,943 350,026 1,567,144 (208,370) 0 3,574,300Subtotal Primary Competitors
322,571,982 15,025,731 (1,454,322) (273,508) (594,379) 0 (2,621,144)Remaining Seattle Market
327,338,574 15,964,674 (1,104,296) 1,293,636 (802,749) 0 953,156Total Seattle Market
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TOP INDUSTRIAL LEASES PAST 12 MONTHS
Building Name/Address Submarket Leased SF Tenant Name Tenant Rep Company Leasing Rep CompanyQtr
2800 Center Dr Dupont 747,488 Kimberly Clark - Washington Real Estat…Q2 19
2600 Taylor Way Port of Tacoma/Fife 428,228 Ashley HomeStore (US) Kidder Mathews Kidder MathewsQ2 19
19922 38th Ave Parkland/Spanaway 405,000 Best Buy - Neil Walter Company;P…Q3 18
2600 Taylor Way Port of Tacoma/Fife 340,000 Samsung - Kidder MathewsQ4 18
4800 Harbour Pointe Blvd * S Everett/Harbor Pt 326,447 Travis Industries Broderick Group, Inc. -Q4 18
6302 S 287th St Auburn 287,832 Young's Market Colliers International CBREQ4 18
3401 W Valley Hwy E Puyallup/S Hill 263,168 - - Neil Walter CompanyQ2 19
20413 59th Pl S Kent Valley N 245,670 Wilmar Corporation The Andover Compa… CBREQ1 19
4800 E Valley Hwy Puyallup/S Hill 228,256 East Bay Logistics - Exeter Property GroupQ4 18
701-713 A St NE * Auburn 172,830 ProAmpac - Cushman & WakefieldQ3 18
2402 R St NW * Auburn 162,056 Hollingsworth Logistics Gr… - Cushman & WakefieldQ3 18
14237 Des Moines Memorial Dr Tukwila 161,573 Mercer Distribution - Kidder MathewsQ1 19
3514 142nd Ave E Puyallup/S Hill 161,200 - - CBRE;PrologisQ3 19
521 8th St SW Auburn 157,414 Edward Don & Company CBRE CBREQ4 18
13605 52nd St E Puyallup/S Hill 154,000 Article - CBREQ3 18
20413 59th Pl S Kent Valley N 144,000 - - CBREQ3 19
19822-20024 87th Ave S * Kent Valley N 144,000 Plastic Express - -Q4 18
4123 142nd Ave E Puyallup/S Hill 142,825 - - Colliers InternationalQ2 19
7024 S 234th St Kent Valley S 125,400 - - JLLQ2 19
2601 W Valley Hwy N Auburn 124,878 Pacific Plumbing Supply Co. - Neil Walter CompanyQ1 19
3602 Freeman Rd E Puyallup/S Hill 119,911 - - Colliers InternationalQ2 19
701 A St NE * Auburn 113,642 ProAmpac - Cushman & WakefieldQ3 18
600 Riverside Rd Everett CBD 102,607 Amazon - JLL;Washington Real E…Q2 19
22619-22731 54th Ave S Kent Valley S 102,002 - - JLLQ2 19
820 SW 41st St Renton 101,400 T&A Supply - CBREQ4 18
927 E 11th St Port of Tacoma/Fife 100,432 Stryder Motorfreight - Cushman & WakefieldQ1 19
9713 233rd Ave E E Pierce County 100,000 - - TeeterQ2 19
24105-24305 Woodinville Snohomish… Woodinville 98,250 - - NAI Puget Sound Prop…Q4 18
6050 E Marginal Way S Gtown/Duwamish N 96,000 Home Depot - Washington Real Estat…Q4 18
3520 142nd Ave E Puyallup/S Hill 96,000 XPO R.E. Perry Company CBRE;PrologisQ3 18
6607 S 287th St Auburn 92,293 - - Kidder MathewsQ2 19
20730-20844 72nd Ave S Kent Valley N 90,876 - - Colliers InternationalQ2 19
22414-22714 Russell Rd Kent Valley S 89,900 Innerline Brands - Cushman & WakefieldQ1 19
15300 Woodinville-Redmond Rd NE Woodinville 85,211 CustomSpace Colliers International CBREQ4 18
7812 S 186th Pl Kent Valley N 84,000 Griffith Industries - JLLQ3 19
8610-8810 S 212th St Kent Valley N 81,000 Wayfair, Inc. - Kidder Mathews;PrologisQ3 18
14237 Des Moines Memorial Dr Tukwila 73,845 Suddath Moving - Kidder MathewsQ1 19
1039 S 146th St Tukwila 72,427 Carrols - Kidder MathewsQ2 19
21422-21520 84th Ave S Kent Valley S 70,925 Seko Worldwide Newmark Knight Frank CBREQ2 19
3900 Industry Dr E Port of Tacoma/Fife 69,798 OnTrac Cushman & Wakefield CBRE;PrologisQ4 18
*Renewal
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Rents in all industrial property types have grown robustlythis cycle, but most property subtypes reached a peak inthe first half of 2017. Annual rent growth is still higherthan the national and historical averages, and averagerent is well above the national index.
Logistics properties have maintained the strongestcumulative rent growth this cycle, but flex andspecialized properties have seen substantial growth aswell. With more properties making their way through thepipeline (especially logistics), supply pressures areevident and rent gains could slow in the near term.
Rent growth deceleration has been particularly notable insubmarkets close to the Port of Tacoma, and this shouldcontinue. Developers caught on to the strong rent growthearlier in the cycle, but annual gains have slowed in theface of supply pressures. Many of the submarkets withthe strongest growth are high-rent submarkets close tothe city and in northern parts of the metro. These areashave some of the tightest vacancies in the metro, due tostrong demand and less development than othersubmarkets this cycle.
MARKET RENT GROWTH (YOY)
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MARKET RENT PER SQUARE FOOT
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Development activity is robust this cycle and shows nosigns of slowing down. Roughly 20 million SF ofindustrial space delivered here from 2010–18, including19 million SF of logistics space and around 1 million SFof specialized space. Flex space actually had a net loss,since some properties were demolished. With more than8 million SF slated to deliver in 2019–20, competition fortenants will be stiff.
While projects have delivered across the metro, PierceCounty has received the most attention this cycle. Thearea is close to the Port of Tacoma, and land costs andrents are well below the metro average. Recentlydelivered projects are a mixed bag between speculativeand build-to-suit developments. On the speculativeside, Panattoni’s 468,000-SF Lakewood-TacomaGateway opened in the Fort Lewis Submarket in 18Q2.The property was able to secure Damco and GEODISLogistics several months before the project delivered.The asset is a 20-minute drive from the port and offerseasy access to Olympia.
Major projects underway are concentrated in South Kingand Pierce counties. Examples include Michelson's438,000-SF Viking in Puyallup. The project is set todeliver by the end of the year and remains fully availablefor lease as of 19Q3. A handful of buildings are alsounder construction and in planning in Snohomish County.For example, nearly 500,000 SF is under construction at
Gayteway Business Park in Arlington. The project wasfully available for lease as of 19Q3 and it is expected toopen in 2020.
Some developers are trading low land costs for proximityto the city. Prologis announced in 2016 that it would buildthe first multistory warehouse in the U.S. just outsidedowntown Seattle, in the Georgetown area. Constructionstarted in 2017 on the 590,000-SF GeorgetownCrossroads, and it opened in December 2018. Theproject was able to secure a 96,000-SF lease withHome Depot in 18Q4 but the remaining space remainsavailable for lease as of 19Q3.
This is not Prologis' only venture in the Puget Soundregion, either. The company’s acquisition of DCTIndustrial added several assets to its Seattle-areaportfolio, but it had investments in the area prior to that.Next to Boeing Field, a site previously planned for anNHL/NBA arena was sold to the company for $136million in November 2016. The site lies in both Seattleand Tukwila and has a warehouse, a cold-storagefacility, and retail and office buildings totaling over960,000 SF. The industrial REIT plans to redevelop the62-acre site, which is being called Emerald Gateway.This was the 12th property acquired by Prologis in a two-year period, making the REIT the largest institutionalowner in South Seattle.
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DELIVERIES & DEMOLITIONS
SUBMARKET CONSTRUCTION
Average Building Size
RankUnder Constr
Under Construction Inventory
All ExistingSF (000) Pre-Leased SF (000)SubmarketNo. RankBldgs Pre-Leased %
1 Puyallup/S Hill 4 929 232,31628.3% 4 58,594263 2
2 Dupont 1 747 747,488100% 1 257,994747 1
3 Port of Tacoma/Fife 2 276 138,0050% 5 54,0260 4
4 Kent Valley N 1 220 219,9100% 5 76,6200 3
5 Kent Valley S 1 98 97,5220% 5 46,9400 5
6 E Tacoma 1 77 77,4320% 5 15,2060 6
7 Federal Way 1 77 77,233100% 1 26,21977 7
8 E King County 1 60 60,1000% 5 31,6960 8
9 E Pierce County 1 19 19,2000% 5 17,4950 9
10 Bothell/Kenmore 1 10 9,500100% 1 36,49410 10
All Other 0 - -- 33,553-
Totals 14 2,514 179,54743.7% 38,4661,097
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Properties
14Square Feet
2,513,660Percent of Inventory
0.8%Preleased
43.7%
UNDER CONSTRUCTION PROPERTIES
UNDER CONSTRUCTION
Property Name/Address Rating Bldg SF Stories Start Complete Developer/Owner
Oct-20182800 Center Dr
The Cubes at DuPont Co…747,488 1 Sep-2019
-
-1
Oct-2018Shaw Rd E & 5th Ave SE
The Viking438,065 1 Nov-2019
-
-2
Jun-20193401 W Valley Hwy E
Prologis Park Sumner263,168 1 Jan-2020
-
Prologis, Inc.3
Jan-20193401 Lincoln Ave
Building C221,010 1 Aug-2019
-
Port of Tacoma4
Jan-20198615 S 192nd St
Kent 192 DC219,910 1 Nov-2019
-
Terreno Realty Corporation5
Jul-2018109 Roy Rd SE
Pacific Logistics North163,894 1 Aug-2019
-
Panattoni Development Company6
Jun-201926524 79th Ave
97,522 1 Jan-2020-
-7
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UNDER CONSTRUCTION
Property Name/Address Rating Bldg SF Stories Start Complete Developer/Owner
May-20192519 96th St
Tacoma I-5 Industrial Ce…77,432 1 Oct-2019
-
-8
Jul-20191019 S 351st St
Pacific Highway77,233 1 Jul-2020
-
Neumeier Engineering9
Jun-20191710 136th Ave E
Bridge Point Sumner 6064,138 1 Dec-2019
-
-10
Jul-201934821 SE Douglas St
Boulder Building at Sno…60,100 1 Oct-2019
-
Vincent Volpe11
Jul-201970th Ave E
Davis 7055,000 1 Feb-2020
-
-12
Jan-201910007 234th Ave E
19,200 1 Aug-2019-
-13
Jan-201811910 Woodinville Dr
9,500 2 Aug-2019-
John Fowler14
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Seattle attracts a great deal of interest from institutionalinvestors. While the cap rate on the average asset is inthe 5% range, the best-quality assets are garneringeven lower cap rates. These yields are some of thelowest in the country, and most markets that trade in thisrange (Los Angeles, New York) have much moreestablished ports.
Sales volume in 2019 is on pace to be lower than lastyear's, but 2018 was a record year. The largest deal of2019 thus far was Colony Capital's acquisition of fourproperties from Dermody Properties in February. The
assets are in Fife, Lakewood, and Woodinville and werepart of a national portfolio that sold for $1.2 billion. TheSeattle-area assets were estimated to be worth around$136 million based on allocated pricing.
Another large trade was Clarion Partners' acquisition ofthree buildings at Des Moines Creek Business Park -Phase I for $81.1 million ($162/SF) at a 4% cap rate inJune. The property was reportedly fully occupied bytenants like Hearthside Food Solutions, K-2 Corporation,Kardiel, Meiko America and PODS.
SALES VOLUME & MARKET SALE PRICE PER SF
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Sale Comparables
378Avg. Cap Rate
5.5%Avg. Price/SF
$165Avg. Vacancy At Sale
7.5%SALE COMPARABLE LOCATIONS
SALE COMPARABLES SUMMARY STATISTICS
Sales Attributes Low Average Median High
Sale Price $131,796 $8,058,768 $3,850,000 $78,996,568
Price Per SF $5.65 $165 $167 $1,536
Cap Rate 3.5% 5.5% 5.0% 8.5%
Time Since Sale in Months 0.3 6.8 7.6 12.0
Property Attributes Low Average Median High
Building SF 1,041 55,782 24,454 648,679
Ceiling Height 9' 21'3" 21' 50'
Docks 0 9 2 130
Vacancy Rate At Sale 0% 7.5% 0% 100%
Year Built 1890 1979 1985 2020
Star Rating 2.4
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Property Name - Address Rating Yr Built Bldg SF Vacancy Price Price/SF
Property
Sale Date
Sale
Cap Rate
RECENT SIGNIFICANT SALES
-1 Safeway Distribution Ctr…2005 636,127 0% $78,996,568 $124
105 C St SW12/18/2018 -
-2 Lakewood-Tacoma Gate…2018 467,208 16.3% $65,575,000 $140
14801 Spring St SW12/19/2018 -
-3 Safeway Distribution Ctr…2005 514,000 0% $63,830,392 $124
104 C St SW12/18/2018 -
-4 Des Moines Creek BP Ph…2018 265,922 0% $59,405,282 $223
21202 24th Ave S12/11/2018 -
-5 Bldg D1984 218,003 0% $53,500,000 $245
6101 S 180th St11/21/2018 -
-6 Des Moines Creek BP Ph…2018 246,073 0% $51,594,718 $210
21402 24th Ave S12/11/2018 -
-7 Sls - Sears Whse1981 294,912 0% $49,000,000 $166
7650 S 228th St8/31/2018 -
-8 Toysmith2008 264,344 0% $41,050,000 $155
3101 W Valley Hwy E12/27/2018 5.2%
-9 5940-5980 1st Ave S1967 206,669 0% $41,001,996 $1988/7/2018 -
-10 Pepsi Bottling - Bldg 21972 166,014 0% $38,102,987 $230
2300 26th Ave9/7/2018 -
-11 Bldg 1C2015 233,703 0% $37,785,927 $162
2021 S 208th St6/4/2019 4.0%
-12 LogistiCenter at Woodin…2019 275,710 14.2% $37,637,272 $137
7720 W Bostian Rd2/25/2019 -
-13 Kent 351985 361,135 0% $37,119,616 $103
27232 72nd Ave S10/1/2018 -
-14 Bldg C1980 300,000 0% $36,573,910 $122
19802-20024 85th Ave S10/1/2018 -
-15 4800 E Valley Hwy2004 228,256 72.8% $36,100,000 $1583/4/2019 -
-16 LogistiCenter at I-52017 210,700 0% $34,277,220 $163
3401 96th St S2/25/2019 -
-17 Bldg F1980 307,200 0% $33,594,857 $109
19822-20024 87th Ave S10/1/2018 -
-18 Northwest Corporate Par…1980 300,000 3.0% $32,807,477 $109
19801-20023 89th Ave S10/1/2018 -
-19 LogistiCenter at 1672016 225,800 0% $32,574,040 $144
7402-7490 26th St E2/25/2019 -
-20 LogistiCenter at Woodin…2019 134,000 24.5% $31,546,509 $235
7733 W Bostian Rd2/25/2019 -
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Seattle’s economic success remains broad-based, andthe unemployment rate has contracted significantly thiscycle. Employment growth has outpaced the nationalaverage since 2010 and will likely remain this way in thenear term. Nonfarm job growth remains well above 2%annually and this robust growth is well-diversified amongvarious sectors. A strong job market translates todynamic income growth: The metro's median householdincome is around $87,000, nearly 40% higher than thenational median and more than 30% higher than themetro level at the beginning of the cycle.
The largest supersector in the Seattle area remainstrade, transportation, and utilities, and it has grownexponentially this cycle. This includes the retail tradesector, which Amazon technically falls under. Trade hasbenefited from strong connections to emerging Asianmarkets, as have leisure and hospitality, bolstered byincreasing international business travel and tourism. Theeducation and health services supersector benefits fromthe presence of the University of Washington, which, inaddition to being one of the metro’s largest employers,has spawned a cluster of life sciences and biotechcompanies in nearby South Lake Union.
Amid a well-diversified job base, tech is clearly the toastof the town. As a result, the information supersector hasexhibited impressive growth this cycle. The presence ofcompanies like Microsoft contributes to making Seattlean international center of technology, but Amazon sealsthe deal. The e-commerce giant continues to expandrapidly with high-paying jobs in the tech industry, evenwith its second headquarters (HQ2). The companyemploys 45,000 people in the metro and couldrealistically add tens of thousands more over the nextseveral years.
Other tech companies have been expanding, too,including well-known Bay Area firms. Facebook is onpace to more than double its Puget Sound regionalheadcount to 4,000 employees. The company has signedseveral leases in the urban core and Eastside recently.
Google is expanding rapidly in South Lake Union, andcould easily double its headcount to 6,000 employees inthe metro. Last but not least, Apple announced that itwould expand by 2,000 employees in the city of Seattle.Such expansions continue to add high-paid workers tothe region—the metro’s population growth far outpacesthe national average.
The aura of stagnation appears to be lifting at Microsoft,the Eastside's major tech employer. CEO Satya Nadella’s push to cloud computing has pleased analysts andshareholders alike. The software giant is in the midst ofexpanding its Redmond campus, which will likely haveroom for 8,000 additional employees when completed.Initial estimates were for a 2025 project completion date,but plans submitted to the city in early 2018 have amore-aggressive completion target of 2022, well beforethe light rail expansion makes its way to Redmond.
Manufacturing threatens to rain on the economy’sparade. Financial activities never completely recoveredfrom Washington Mutual’s 2008 bankruptcy, but it isBoeing’s possible pivot to other countries and to thesouthern United States that is one of the biggestpotential threat to the Puget Sound area’s economy. Theaerospace giant opened its first offshore plane facility inChina in December 2018 and it is considering movingkey segments of its operations to other countries, whichmeans fewer jobs in Washington state. The company cutnearly 7,400 jobs in the state in 2016 and more than4,000 jobs in 2017, and more layoffs are looming.
While layoffs are concerning, this is no indication of badperformance for the jet maker. The company set anindustry record in 2017, with a total of 763 planesdelivered, and 2018 was strong as well, despite supplychain slowdowns throughout the year. The grounding ofthe 737 Max in early 2019 is concerning though, as alarge part of the company's business is in jeopardy. The737 Max is manufactured in Renton and the companyannounced that it would cut production of the jet by 20%until further notice.
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SEATTLE EMPLOYMENT BY INDUSTRY IN THOUSANDS
NAICS Industry Jobs LQ MarketUS USMarketUSMarket
Current Jobs Current Growth 10 Yr Historical 5 Yr Forecast
0.00%0.42%0.84%0.62%1.41%3.45%1.0184Manufacturing
0.49%0.72%1.14%2.63%0.86%1.28%1.0396Trade, Transportation and Utilities
0.38%1.01%0.84%3.18%-0.19%0.62%1.0228 Retail Trade
0.35%0.33%0.99%0.62%1.01%2.09%0.9105Financial Activities
0.77%1.43%-0.03%0.30%0.43%-1.03%0.9270Government
0.26%1.65%2.06%3.29%3.17%4.25%1.2134Natural Resources, Mining and Construction
0.55%0.59%2.12%2.46%2.30%3.44%0.9285Education and Health Services
1.00%1.30%2.61%3.20%2.27%2.61%1.0304Professional and Business Services
0.56%1.93%0.00%3.31%-0.91%2.91%3.1121Information
0.61%0.60%2.49%3.20%2.51%3.93%0.9214Leisure and Hospitality
0.30%1.07%0.98%1.71%1.30%2.70%0.977Other Services
Total Employment 2,091 1.0 2.28% 1.56% 2.15% 1.42% 0.97% 0.56%
Source: Oxford Economics
LQ = Location Quotient
Source: Oxford Economics
YEAR OVER YEAR JOB GROWTH
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DEMOGRAPHIC TRENDS
Current ChangeCurrent Level
Metro U.S.Metro U.S.Demographic Category
10-Year Change
Metro U.S. Metro U.S.
Forecast Change (5 Yrs)
Population 329,091,9693,989,720 1.5% 0.6% 1.6% 0.7% 1.4% 0.7%
Households 121,200,5781,526,990 1.4% 0.5% 1.4% 0.6% 1.3% 0.6%
Median Household Income $63,584$87,905 4.0% 3.3% 3.0% 2.2% 4.2% 4.4%
Labor Force 163,304,7662,150,330 1.8% 0.9% 1.2% 0.6% 1.1% 0.6%
Unemployment 3.6%3.6% -0.2% -0.3% -0.5% -0.6% - -
Source: Oxford Economics
POPULATION GROWTH
Source: Oxford Economics
LABOR FORCE GROWTH INCOME GROWTH
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SEATTLE SUBMARKETS
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SUBMARKET INVENTORY
12 Month Deliveries Under Construction
Bldgs SF (000) Percent Rank
Inventory
Bldgs SF (000) Percent RankBldgs SF (000) % Market RankSubmarketNo.
1 520 Corridor 1,095 0.3% 43 0 - - -54 0 0 0% -
2 Auburn 27,675 8.5% 3 0 - - -441 3 504 1.8% 5
3 Ballard 2,729 0.8% 30 0 - - -235 1 71 2.6% 15
4 Bellevue 2,928 0.9% 29 0 - - -124 0 0 0% -
5 Belltwn/Denny Regrade 199 0.1% 49 0 - - -11 0 0 0% -
6 Bothell/Kenmore 5,584 1.7% 17 1 10 0.2% 10153 0 0 0% -
7 Capitol Hill/Ctrl Dist In 768 0.2% 45 0 - - -34 0 0 0% -
8 Dupont 3,354 1.0% 25 1 747 22.3% 213 2 664 19.8% 3
9 E King County 3,740 1.1% 21 1 60 1.6% 8118 0 0 0% -
10 E Pierce County 770 0.2% 44 1 19 2.5% 944 1 202 26.2% 12
11 E Tacoma 3,452 1.1% 23 1 77 2.2% 6227 0 0 0% -
12 Edmonds/Lynnwood 3,255 1.0% 27 0 - - -187 0 0 0% -
13 Everett CBD 3,567 1.1% 22 0 - - -167 1 204 5.7% 11
14 Federal Way 1,573 0.5% 37 1 77 4.9% 760 0 0 0% -
15 Fort Lewis 551 0.2% 47 0 - - -9 0 0 0% -
16 Gig Harbor/W Pierce 693 0.2% 46 0 - - -73 0 0 0% -
17 Greenwood/Fremont 1,210 0.4% 40 0 - - -111 0 0 0% -
18 Gtown/Duwamish N 14,778 4.5% 8 0 - - -387 1 590 4.0% 4
19 Gtown/Duwamish S 12,346 3.8% 9 0 - - -263 0 0 0% -
20 Kent Valley N 30,954 9.5% 1 1 220 0.7% 4404 3 256 0.8% 10
21 Kent Valley S 20,419 6.2% 5 1 98 0.5% 5435 2 144 0.7% 13
22 Kirkland 3,357 1.0% 24 0 - - -133 0 0 0% -
23 Lake Union 1,661 0.5% 36 0 - - -97 0 0 0% -
24 Lakewood 4,955 1.5% 19 0 - - -151 0 0 0% -
25 Magnolia 2,689 0.8% 31 0 - - -158 0 0 0% -
26 Mill Creek/N Creek 1,759 0.5% 35 0 - - -74 0 0 0% -
27 N Snohomish County 6,135 1.9% 15 0 - - -311 3 131 2.1% 14
28 Newport/Issaquah 1,894 0.6% 34 0 - - -83 0 0 0% -
29 North End Tacoma 2,367 0.7% 32 0 - - -119 1 10 0.4% 18
30 Northgate/N Seattle 1,521 0.5% 38 0 - - -143 0 0 0% -
31 Parkland/Spanaway 7,008 2.1% 14 0 - - -139 1 450 6.4% 8
32 Port of Tacoma/Fife 21,718 6.6% 4 2 276 1.3% 3402 4 1,178 5.4% 1
33 Puyallup/S Hill 29,297 9.0% 2 4 929 3.2% 1500 4 472 1.6% 6
34 Queen Anne 2,097 0.6% 33 0 - - -91 0 0 0% -
35 Rainier/Beacon Hill 3,252 1.0% 28 0 - - -139 0 0 0% -
36 Redmond 8,359 2.6% 12 0 - - -272 1 52 0.6% 16
37 Renton 11,017 3.4% 11 0 - - -163 0 0 0% -
38 S Everett/Harbor Pt 20,174 6.2% 6 0 - - -350 1 7 0% 19
39 S Snohomish County 3,304 1.0% 26 0 - - -129 1 21 0.6% 17
40 Seatac/Burien 5,679 1.7% 16 0 - - -136 3 921 16.2% 2
41 Seattle CBD 6 0% 50 0 - - -1 0 0 0% -
42 SoDo 11,191 3.4% 10 0 - - -293 0 0 0% -
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SUBMARKET INVENTORY
12 Month Deliveries Under Construction
Bldgs SF (000) Percent Rank
Inventory
Bldgs SF (000) Percent RankBldgs SF (000) % Market RankSubmarketNo.
43 Tacoma CBD 1,363 0.4% 39 0 - - -62 0 0 0% -
44 Tukwila 15,717 4.8% 7 0 - - -346 2 369 2.3% 9
45 U. District/Ravenna 1,185 0.4% 41 0 - - -40 0 0 0% -
46 University Place 5,321 1.6% 18 0 - - -259 0 0 0% -
47 Vashon/Maury Isl 332 0.1% 48 0 - - -8 0 0 0% -
48 W Seattle 4,074 1.2% 20 0 - - -113 0 0 0% -
49 Waterfront 1,145 0.3% 42 0 - - -33 0 0 0% -
50 Woodinville 7,094 2.2% 13 0 - - -214 4 455 6.4% 7
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SUBMARKET RENT
Growth
Asking Rent
Per SFSubmarketNo.
12 Month Asking Rent Annualized Quarterly Rent
RankRank GrowthRank
1 520 Corridor 1.6%5 8.2% 2$18.78 41
2 Auburn 2.5%41 5.4% 44$8.70 24
3 Ballard -0.4%12 5.7% 35$16.47 48
4 Bellevue 1.7%10 6.6% 14$16.66 39
5 Belltwn/Denny Regrade 2.3%4 8.0% 3$18.86 28
6 Bothell/Kenmore 2.6%7 7.4% 7$18.05 21
7 Capitol Hill/Ctrl Dist In 2.1%1 8.3% 1$30.46 31
8 Dupont 6.7%50 6.2% 23$7.80 2
9 E King County 3.5%17 6.3% 19$14.30 10
10 E Pierce County 0.2%49 5.8% 33$7.88 45
11 E Tacoma 2.2%43 5.7% 34$8.36 30
12 Edmonds/Lynnwood 1.7%21 6.3% 18$13.39 40
13 Everett CBD 3.2%34 5.6% 39$10.40 12
14 Federal Way 2.9%27 7.3% 8$12.41 16
15 Fort Lewis 6.8%47 6.2% 22$8.17 1
16 Gig Harbor/W Pierce 1.4%19 7.2% 10$13.90 42
17 Greenwood/Fremont -0.1%11 5.4% 43$16.48 46
18 Gtown/Duwamish N 2.4%23 5.4% 42$12.64 25
19 Gtown/Duwamish S -1.5%29 4.4% 50$11.92 50
20 Kent Valley N 4.6%42 5.9% 31$8.38 4
21 Kent Valley S 4.1%40 5.7% 38$8.96 7
22 Kirkland 1.9%14 7.1% 12$15.15 37
23 Lake Union 2.0%2 7.4% 6$25.64 33
24 Lakewood 3.4%39 6.0% 27$9.02 11
25 Magnolia 2.1%16 5.5% 41$14.53 32
26 Mill Creek/N Creek 3.1%20 6.4% 17$13.58 14
27 N Snohomish County 2.6%36 5.7% 37$10.26 23
28 Newport/Issaquah 2.7%6 7.2% 11$18.37 19
29 North End Tacoma 1.1%37 5.7% 36$9.68 44
30 Northgate/N Seattle 2.4%15 6.1% 26$14.74 26
31 Parkland/Spanaway 2.8%44 5.4% 45$8.31 18
32 Port of Tacoma/Fife 4.5%45 5.9% 29$8.29 5
33 Puyallup/S Hill 4.8%46 5.9% 28$8.24 3
34 Queen Anne 2.0%9 7.2% 9$17.25 34
35 Rainier/Beacon Hill 1.9%24 5.5% 40$12.51 36
36 Redmond 2.6%13 7.6% 5$15.63 20
37 Renton 3.1%35 5.2% 48$10.27 15
38 S Everett/Harbor Pt 1.4%31 5.3% 46$11.27 43
39 S Snohomish County 2.8%32 6.4% 15$10.91 17
40 Seatac/Burien 3.6%28 5.9% 30$12.20 9
41 Seattle CBD 1.9%3 6.1% 25$20.93 35
42 SoDo -0.6%22 6.2% 21$13.26 49
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SUBMARKET RENT
Growth
Asking Rent
Per SFSubmarketNo.
12 Month Asking Rent Annualized Quarterly Rent
RankRank GrowthRank
43 Tacoma CBD 2.6%48 5.8% 32$8.13 22
44 Tukwila 2.2%30 6.1% 24$11.80 29
45 U. District/Ravenna 3.2%8 8.0% 4$17.64 13
46 University Place 2.4%38 5.3% 47$9.19 27
47 Vashon/Maury Isl 3.7%33 6.7% 13$10.87 8
48 W Seattle -0.3%25 4.8% 49$12.44 47
49 Waterfront 4.3%18 6.4% 16$13.91 6
50 Woodinville 1.8%26 6.3% 20$12.43 38
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SUBMARKET VACANCY & NET ABSORPTION
12 Month Net Absorption
Rank Construct. Ratio
Vacancy
SF % of InvSF PercentSubmarketNo. Rank
1 520 Corridor 35,739 3.3% -(16,957) -1.5% 3819
2 Auburn 1,004,204 3.6% -(277,000) -1.0% 4821
3 Ballard 127,979 4.7% -(5,315) -0.2% 3527
4 Bellevue 128,697 4.4% -(65,127) -2.2% 4324
5 Belltwn/Denny Regrade - - -5,375 2.7% 25-
6 Bothell/Kenmore 341,653 6.1% -38,448 0.7% 1535
7 Capitol Hill/Ctrl Dist In - - -869 0.1% 29-
8 Dupont 664,228 19.8% 334.11,988 0.1% 2744
9 E King County 92,817 2.5% -(15,555) -0.4% 3716
10 E Pierce County 140,002 18.2% 2.2102,726 13.3% 843
11 E Tacoma 37,994 1.1% -(273) 0% 319
12 Edmonds/Lynnwood 42,352 1.3% -(4,485) -0.1% 3410
13 Everett CBD 217,832 6.1% 3.166,181 1.9% 934
14 Federal Way 191,886 12.2% -(64,741) -4.1% 4242
15 Fort Lewis 212,850 38.6% -203,942 37.0% 445
16 Gig Harbor/W Pierce 4,500 0.6% -(2,690) -0.4% 335
17 Greenwood/Fremont 43,405 3.6% -(30,020) -2.5% 4020
18 Gtown/Duwamish N 1,057,961 7.2% -(68,170) -0.5% 4439
19 Gtown/Duwamish S 128,008 1.0% -(1,005) 0% 328
20 Kent Valley N 1,736,523 5.6% 6.936,970 0.1% 1632
21 Kent Valley S 1,186,144 5.8% -(425,963) -2.1% 5033
22 Kirkland 57,085 1.7% -4,650 0.1% 2613
23 Lake Union 15,285 0.9% -7,525 0.5% 237
24 Lakewood 68,969 1.4% -(9,078) -0.2% 3611
25 Magnolia 86,791 3.2% -14,614 0.5% 2118
26 Mill Creek/N Creek 7,999 0.5% -58,167 3.3% 104
27 N Snohomish County 242,093 3.9% 0.7161,636 2.6% 522
28 Newport/Issaquah 31,536 1.7% -(17,492) -0.9% 3912
29 North End Tacoma 67,496 2.9% 1.85,667 0.2% 2417
30 Northgate/N Seattle 5,719 0.4% -12,046 0.8% 222
31 Parkland/Spanaway 434,538 6.2% 10.841,753 0.6% 1336
32 Port of Tacoma/Fife 1,589,289 7.3% 1.3934,592 4.3% 140
33 Puyallup/S Hill 1,399,426 4.8% -(206,661) -0.7% 4628
34 Queen Anne 38,439 1.8% -34,184 1.6% 1714
35 Rainier/Beacon Hill 12,727 0.4% -33,625 1.0% 183
36 Redmond 386,163 4.6% -139,147 1.7% 626
37 Renton 460,532 4.2% -105,538 1.0% 723
38 S Everett/Harbor Pt 477,144 2.4% -(32,215) -0.2% 4115
39 S Snohomish County 206,095 6.2% 0.544,304 1.3% 1237
40 Seatac/Burien 650,321 11.5% 1.9377,737 6.7% 241
41 Seattle CBD - - -0 0% --
42 SoDo 555,359 5.0% -(356,471) -3.2% 4929
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SUBMARKET VACANCY & NET ABSORPTION
12 Month Net Absorption
Rank Construct. Ratio
Vacancy
SF % of InvSF PercentSubmarketNo. Rank
43 Tacoma CBD 90,966 6.7% -29,034 2.1% 1938
44 Tukwila 844,830 5.4% -(234,609) -1.5% 4730
45 U. District/Ravenna - - -1,645 0.1% 28-
46 University Place 235,090 4.4% -(73,618) -1.4% 4525
47 Vashon/Maury Isl 175,000 52.7% -45,000 13.5% 1146
48 W Seattle 27,035 0.7% -26,409 0.6% 206
49 Waterfront 2,120 0.2% -41,306 3.6% 141
50 Woodinville 388,930 5.5% 1.5298,046 4.2% 331
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OVERALL SUPPLY & DEMAND
Net AbsorptionInventory
% of Inv Construction RatioSF SF Growth % Growth SFYear
2023 2,568,358 0.8% 0.7%2,424,796 1.1340,790,518
2022 2,922,924 0.9% 0.6%1,954,376 1.5338,222,160
2021 3,448,855 1.0% 0.6%2,001,479 1.7335,299,236
2020 3,488,097 1.1% 0.4%1,365,610 2.6331,850,381
2019 4,540,748 1.4% 0.2%772,721 5.9328,362,284
YTD 3,517,038 1.1% -0.2%(613,409) -327,338,574
2018 5,950,750 1.9% 1.0%3,212,029 1.9323,821,536
2017 2,713,384 0.9% 1.4%4,434,500 0.6317,870,786
2016 2,814,944 0.9% 1.8%5,805,506 0.5315,157,402
2015 4,112,598 1.3% 1.5%4,783,044 0.9312,342,458
2014 2,114,524 0.7% 1.6%4,789,180 0.4308,229,860
2013 1,951,074 0.6% 1.1%3,267,862 0.6306,115,336
2012 71,175 0% 1.6%4,783,659 0304,164,262
2011 52,390 0% 0.9%2,837,567 0304,093,087
2010 (145,132) 0% -0.2%(580,419) -304,040,697
2009 1,727,658 0.6% -1.6%(4,774,231) -304,185,829
2008 4,364,429 1.5% 0.9%2,871,959 1.5302,458,171
2007 5,864,992 2.0% 2.3%6,961,400 0.8298,093,742
SPECIALIZED INDUSTRIAL SUPPLY & DEMAND
Net AbsorptionInventory
% of Inv Construction RatioSF SF Growth % Growth SFYear
2023 68,780 0.1% -0.4%(388,250) -87,624,923
2022 78,240 0.1% -0.5%(460,365) -87,556,143
2021 92,340 0.1% -0.6%(481,954) -87,477,903
2020 58,422 0.1% -0.7%(634,995) -87,385,563
2019 121,678 0.1% -0.4%(383,402) -87,327,141
YTD 126,515 0.1% -0.4%(371,055) -87,331,978
2018 154,292 0.2% 0%32,930 4.787,205,463
2017 (467,126) -0.5% -0.8%(682,543) -87,051,171
2016 (40,014) 0% 0.6%549,400 -87,518,297
2015 545,990 0.6% 1.4%1,202,641 0.587,558,311
2014 211,203 0.2% 0.5%452,243 0.587,012,321
2013 49,013 0.1% 0.1%74,954 0.786,801,118
2012 336,365 0.4% 0.5%440,088 0.886,752,105
2011 (74,250) -0.1% 1.1%942,605 -86,415,740
2010 40,820 0% 0.3%252,737 0.286,489,990
2009 276,008 0.3% -0.8%(713,866) -86,449,170
2008 (23,871) 0% 0.1%65,065 -86,173,162
2007 375,215 0.4% 1.7%1,500,281 0.386,197,033
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LOGISTICS SUPPLY & DEMAND
Net AbsorptionInventory
% of Inv Construction RatioSF SF Growth % Growth SFYear
2023 2,482,477 1.1% 1.3%2,978,019 0.8221,938,812
2022 2,825,233 1.3% 1.2%2,596,294 1.1219,456,335
2021 3,333,560 1.6% 1.2%2,658,544 1.3216,631,102
2020 3,415,191 1.6% 1.0%2,226,287 1.5213,297,542
2019 4,639,239 2.3% 0.6%1,274,505 3.6209,882,351
YTD 3,609,475 1.8% -0.1%(144,188) -208,852,587
2018 5,845,343 2.9% 1.5%3,089,885 1.9205,243,112
2017 3,154,478 1.6% 2.6%5,236,019 0.6199,397,769
2016 2,927,280 1.5% 2.3%4,577,070 0.6196,243,291
2015 3,670,400 1.9% 1.9%3,633,790 1.0193,316,011
2014 2,011,785 1.1% 2.0%3,728,547 0.5189,645,611
2013 1,913,082 1.0% 1.8%3,300,488 0.6187,633,826
2012 (281,475) -0.2% 1.8%3,405,297 -185,720,744
2011 126,640 0.1% 1.0%1,778,805 0.1186,002,219
2010 (251,951) -0.1% -0.3%(548,987) -185,875,579
2009 1,385,902 0.8% -1.9%(3,453,787) -186,127,530
2008 3,983,534 2.2% 1.6%2,963,872 1.3184,741,628
2007 5,385,477 3.1% 2.7%4,900,342 1.1180,758,094
FLEX SUPPLY & DEMAND
Net AbsorptionInventory
% of Inv Construction RatioSF SF Growth % Growth SFYear
2023 17,101 0.1% -0.5%(164,973) -31,226,783
2022 19,451 0.1% -0.6%(181,553) -31,209,682
2021 22,955 0.1% -0.6%(175,111) -31,190,231
2020 14,484 0% -0.7%(225,682) -31,167,276
2019 (220,169) -0.7% -0.4%(118,382) -31,152,792
YTD (218,952) -0.7% -0.3%(98,166) -31,154,009
2018 (48,885) -0.2% 0.3%89,214 -31,372,961
2017 26,032 0.1% -0.4%(118,976) -31,421,846
2016 (72,322) -0.2% 2.2%679,036 -31,395,814
2015 (103,792) -0.3% -0.2%(53,387) -31,468,136
2014 (108,464) -0.3% 1.9%608,390 -31,571,928
2013 (11,021) 0% -0.3%(107,580) -31,680,392
2012 16,285 0.1% 3.0%938,274 031,691,413
2011 0 0% 0.4%116,157 031,675,128
2010 65,999 0.2% -0.9%(284,169) -31,675,128
2009 65,748 0.2% -1.9%(606,578) -31,609,129
2008 404,766 1.3% -0.5%(156,978) -31,543,381
2007 104,300 0.3% 1.8%560,777 0.231,138,615
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OVERALL RENT & VACANCY
Market Rent
Per SF Index % Growth Vs Hist PeakYear
Vacancy
SF Percent Ppts Chg
2023 164 0.9% 14.1%$11.99 20,494,155 6.0% 0%
2022 162 1.3% 13.0%$11.88 20,359,334 6.0% 0.2%
2021 160 1.8% 11.6%$11.72 19,393,482 5.8% 0.4%
2020 157 3.5% 9.6%$11.51 17,939,217 5.4% 0.6%
2019 152 5.9% 5.9%$11.13 15,811,798 4.8% 1.2%
YTD 148 3.3% 3.3%$10.85 15,964,674 4.9% 1.2%
2018 144 5.4% 0%$10.51 11,855,427 3.7% 0.8%
2017 136 8.4% -5.1%$9.97 9,116,706 2.9% -0.6%
2016 126 9.2% -12.4%$9.20 10,837,822 3.4% -1.0%
2015 115 5.9% -19.8%$8.43 13,756,062 4.4% -0.3%
2014 109 4.7% -24.3%$7.96 14,498,830 4.7% -0.9%
2013 104 3.6% -27.7%$7.60 17,173,486 5.6% -0.5%
2012 100 1.8% -30.2%$7.33 18,490,274 6.1% -1.6%
2011 99 2.2% -31.4%$7.21 23,202,758 7.6% -0.9%
2010 96 -1.3% -32.9%$7.05 25,987,935 8.5% 0.1%
2009 98 -2.4% -32.0%$7.14 25,552,648 8.4% 2.1%
2008 100 3.0% -30.4%$7.31 19,050,759 6.3% 0.4%
2007 97 4.3% -32.4%$7.10 17,558,289 5.9% -0.5%
SPECIALIZED INDUSTRIAL RENT & VACANCY
Market Rent
Per SF Index % Growth Vs Hist PeakYear
Vacancy
SF Percent Ppts Chg
2023 151 1.0% 8.9%$11.19 4,533,800 5.2% 0.5%
2022 150 1.3% 7.9%$11.09 4,077,495 4.7% 0.6%
2021 148 1.6% 6.5%$10.94 3,539,169 4.0% 0.7%
2020 145 2.7% 4.8%$10.76 2,964,289 3.4% 0.8%
2019 142 2.0% 2.0%$10.48 2,270,340 2.6% 0.6%
YTD 139 0.3% 0.3%$10.30 2,262,772 2.6% 0.6%
2018 139 5.2% 0%$10.27 1,765,202 2.0% 0.1%
2017 132 7.9% -5.0%$9.76 1,643,840 1.9% 0.3%
2016 122 7.8% -11.9%$9.05 1,428,423 1.6% -0.7%
2015 113 5.9% -18.3%$8.40 2,017,837 2.3% -0.8%
2014 107 4.0% -22.8%$7.93 2,674,488 3.1% -0.3%
2013 103 2.9% -25.8%$7.62 2,915,528 3.4% 0%
2012 100 2.4% -27.9%$7.41 2,941,469 3.4% -0.1%
2011 98 1.7% -29.6%$7.24 3,045,192 3.5% -1.2%
2010 96 -1.8% -30.8%$7.11 4,062,047 4.7% -0.2%
2009 98 -2.1% -29.5%$7.25 4,273,964 4.9% 1.1%
2008 100 3.1% -28.0%$7.40 3,284,090 3.8% -0.1%
2007 97 4.0% -30.1%$7.18 3,373,026 3.9% -1.3%
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LOGISTICS RENT & VACANCY
Market Rent
Per SF Index % Growth Vs Hist PeakYear
Vacancy
SF Percent Ppts Chg
2023 173 0.9% 14.5%$10.96 13,539,904 6.1% -0.3%
2022 171 1.3% 13.4%$10.86 14,043,229 6.4% 0%
2021 169 1.8% 12.0%$10.72 13,816,547 6.4% 0.2%
2020 166 3.4% 10.1%$10.53 13,135,131 6.2% 0.5%
2019 161 6.4% 6.4%$10.19 11,941,794 5.7% 1.6%
YTD 157 3.8% 3.8%$9.93 12,121,250 5.8% 1.7%
2018 151 5.7% 0%$9.57 8,388,787 4.1% 1.3%
2017 143 9.6% -5.4%$9.05 5,633,329 2.8% -1.1%
2016 130 10.5% -13.7%$8.26 7,714,870 3.9% -0.9%
2015 118 6.4% -21.9%$7.48 9,364,660 4.8% -0.1%
2014 111 5.4% -26.6%$7.02 9,328,050 4.9% -1.0%
2013 105 3.9% -30.4%$6.66 11,044,812 5.9% -0.8%
2012 101 1.3% -33.0%$6.41 12,432,218 6.7% -2.0%
2011 100 2.9% -33.8%$6.33 16,118,990 8.7% -0.9%
2010 97 -1.0% -35.7%$6.15 17,771,155 9.6% 0.2%
2009 98 -2.0% -35.0%$6.22 17,474,119 9.4% 2.5%
2008 100 3.0% -33.7%$6.34 12,634,430 6.8% 0.4%
2007 97 3.9% -35.6%$6.16 11,614,768 6.4% 0.1%
FLEX RENT & VACANCY
Market Rent
Per SF Index % Growth Vs Hist PeakYear
Vacancy
SF Percent Ppts Chg
2023 156 1.0% 21.1%$21.25 2,420,451 7.8% 0.6%
2022 154 1.5% 20.0%$21.05 2,238,610 7.2% 0.6%
2021 152 2.4% 18.2%$20.73 2,037,766 6.5% 0.6%
2020 148 4.8% 15.4%$20.25 1,839,797 5.9% 0.8%
2019 141 10.2% 10.2%$19.32 1,599,664 5.1% -0.3%
YTD 136 6.3% 6.3%$18.64 1,580,652 5.1% -0.3%
2018 128 4.3% 0%$17.54 1,701,438 5.4% -0.4%
2017 123 4.8% -4.1%$16.82 1,839,537 5.9% 0.5%
2016 117 7.1% -8.5%$16.05 1,694,529 5.4% -2.1%
2015 110 4.2% -14.6%$14.98 2,373,565 7.5% -0.4%
2014 105 3.7% -18.0%$14.38 2,496,292 7.9% -2.2%
2013 102 3.8% -20.9%$13.87 3,213,146 10.1% 0.3%
2012 98 2.4% -23.8%$13.36 3,116,587 9.8% -2.9%
2011 96 0.7% -25.6%$13.05 4,038,576 12.7% -0.4%
2010 95 -1.2% -26.1%$12.97 4,154,733 13.1% 1.1%
2009 96 -3.9% -25.2%$13.13 3,804,565 12.0% 2.1%
2008 100 3.1% -22.1%$13.66 3,132,239 9.9% 1.7%
2007 97 6.5% -24.5%$13.25 2,570,495 8.3% -1.5%
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OVERALL SALES
Completed Transactions (1)
Turnover Avg Price/SFDeals VolumeYear
Market Pricing Trends (2)
Avg Price Price IndexAvg Cap Rate Price/SF Cap Rate
2023 -- - -- 234- $203.20 5.3%
2022 -- - -- 227- $197.17 5.3%
2021 -- - -- 220- $190.82 5.3%
2020 -- - -- 212- $184.37 5.2%
2019 -- - -- 203- $176.28 5.2%
YTD $800.0 M145 1.7% $165.38$6,608,427 1975.6% $171.17 5.2%
2018 $2,438 M416 6.5% $157.21$7,233,791 1895.6% $164.30 5.2%
2017 $1,209 M301 2.7% $168.69$4,936,818 1705.9% $147.87 5.3%
2016 $1,781 M405 4.7% $126.00$4,657,048 1536.2% $132.55 5.5%
2015 $1,595 M430 6.7% $128.17$5,647,267 1376.1% $118.63 5.8%
2014 $986.3 M311 3.5% $93.17$3,304,415 1246.8% $107.83 6.0%
2013 $1,143 M286 4.3% $91.18$4,601,537 1146.4% $99.11 6.2%
2012 $991.2 M278 4.0% $83.04$4,148,680 1076.5% $92.91 6.4%
2011 $614.5 M162 2.7% $74.90$4,118,245 1027.9% $88.61 6.6%
2010 $468.5 M150 1.9% $82.79$3,360,215 967.8% $83.03 6.9%
2009 $357.7 M114 1.4% $84.64$3,321,031 918.6% $79.37 7.2%
2008 $714.9 M244 2.4% $104.13$3,186,061 1006.3% $86.82 6.9%(1) Completed transaction data is based on actual arms-length sales transactions and levels are dependent on the mix of what happened to sell in the period.(2) Market price trends data is based on the estimated price movement of all properties in the market, informed by actual transactions that have occurred.
SPECIALIZED INDUSTRIAL SALES
Completed Transactions (1)
Turnover Avg Price/SFDeals VolumeYear
Market Pricing Trends (2)
Avg Price Price IndexAvg Cap Rate Price/SF Cap Rate
2023 -- - -- 231- $193.48 5.3%
2022 -- - -- 223- $187.56 5.3%
2021 -- - -- 216- $181.36 5.2%
2020 -- - -- 209- $175.25 5.2%
2019 -- - -- 200- $167.98 5.1%
YTD $201.5 M33 1.7% $170.50$7,197,126 1955.9% $163.81 5.1%
2018 $478.8 M99 5.2% $144.66$5,839,096 1875.3% $157.37 5.1%
2017 $279.5 M67 2.3% $171.57$4,819,407 1685.6% $141.41 5.3%
2016 $252.3 M73 2.8% $102.72$3,456,834 1506.7% $126.18 5.5%
2015 $258.6 M67 3.2% $110.60$4,789,292 1356.5% $113.32 5.7%
2014 $373.3 M90 4.7% $92.27$4,242,324 1236.8% $103.03 5.9%
2013 $160.0 M52 2.2% $96.30$3,720,574 1136.4% $95.10 6.1%
2012 $143.6 M53 1.9% $92.25$2,991,711 1077.9% $89.52 6.3%
2011 $157.0 M43 2.7% $69.18$3,830,329 1027.6% $85.58 6.5%
2010 $41.2 M27 0.7% $71.23$1,646,873 967.8% $80.16 6.8%
2009 $87.8 M34 0.9% $116.25$2,580,931 9110.7% $76.59 7.1%
2008 $132.9 M46 1.6% $95.57$2,931,568 1006.5% $83.94 6.7%(1) Completed transaction data is based on actual arms-length sales transactions and levels are dependent on the mix of what happened to sell in the period.(2) Market price trends data is based on the estimated price movement of all properties in the market, informed by actual transactions that have occurred.
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LOGISTICS SALES
Completed Transactions (1)
Turnover Avg Price/SFDeals VolumeYear
Market Pricing Trends (2)
Avg Price Price IndexAvg Cap Rate Price/SF Cap Rate
2023 -- - -- 237- $190.49 5.4%
2022 -- - -- 230- $184.90 5.4%
2021 -- - -- 223- $179.04 5.3%
2020 -- - -- 216- $173.03 5.3%
2019 -- - -- 206- $165.36 5.2%
YTD $543.5 M103 1.9% $161.38$6,315,647 2005.5% $160.40 5.2%
2018 $1,354 M232 6.4% $151.03$7,825,241 1925.2% $153.88 5.2%
2017 $713.1 M186 2.6% $167.72$4,858,328 1725.6% $137.68 5.4%
2016 $1,116 M232 4.6% $128.17$5,191,704 1535.9% $123.16 5.6%
2015 $790.3 M243 7.4% $104.35$4,863,902 1375.9% $110.12 5.8%
2014 $518.5 M190 3.0% $92.35$2,859,092 1256.8% $100.22 6.1%
2013 $769.3 M179 5.1% $82.55$4,677,887 1155.8% $92.00 6.3%
2012 $723.1 M174 5.1% $77.42$4,560,924 1076.0% $86.17 6.5%
2011 $375.0 M95 2.8% $73.17$4,117,459 1027.6% $82.10 6.7%
2010 $322.5 M94 2.5% $73.21$3,696,115 967.8% $76.88 7.0%
2009 $244.3 M67 1.8% $74.06$3,791,437 927.9% $73.48 7.3%
2008 $500.6 M160 2.6% $103.32$3,280,273 1006.4% $80.26 6.9%(1) Completed transaction data is based on actual arms-length sales transactions and levels are dependent on the mix of what happened to sell in the period.(2) Market price trends data is based on the estimated price movement of all properties in the market, informed by actual transactions that have occurred.
FLEX SALES
Completed Transactions (1)
Turnover Avg Price/SFDeals VolumeYear
Market Pricing Trends (2)
Avg Price Price IndexAvg Cap Rate Price/SF Cap Rate
2023 -- - -- 227- $316.71 5.4%
2022 -- - -- 221- $307.38 5.4%
2021 -- - -- 213- $297.28 5.4%
2020 -- - -- 206- $286.84 5.4%
2019 -- - -- 196- $273.63 5.3%
YTD $55.0 M9 0.9% $191.18$7,850,651 190- $264.86 5.3%
2018 $605.2 M85 10.4% $187.18$7,380,673 1836.9% $254.39 5.3%
2017 $216.4 M48 4.5% $168.25$5,393,552 1696.6% $235.13 5.4%
2016 $411.9 M100 10.6% $138.93$4,371,933 1546.4% $214.13 5.5%
2015 $546.3 M120 11.5% $215.56$8,272,052 1376.2% $191.22 5.8%
2014 $94.5 M31 2.9% $102.06$3,237,779 1247.1% $172.92 6.1%
2013 $214.0 M55 5.8% $137.32$5,220,070 1147.7% $158.57 6.3%
2012 $124.5 M51 3.5% $119.75$3,848,681 1067.7% $148.10 6.5%
2011 $82.4 M24 2.9% $101.90$4,816,834 1018.7% $141.29 6.7%
2010 $104.9 M29 2.1% $155.12$3,864,301 957.7% $132.79 6.9%
2009 $25.7 M13 0.6% $148.60$2,771,861 91- $127.05 7.2%
2008 $81.5 M38 2.9% $129.25$3,082,997 1006.2% $139.35 6.9%(1) Completed transaction data is based on actual arms-length sales transactions and levels are dependent on the mix of what happened to sell in the period.(2) Market price trends data is based on the estimated price movement of all properties in the market, informed by actual transactions that have occurred.
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