Figures
Puget Sound Industrial Figures Q2 2026
July 9, 2026 10 Minute Read
Looking for a PDF of this content?
- The Q2 2026 Puget Sound industrial market continued to show soft demand and rising vacancy.
- New deliveries outpaced absorption, and slower lease‑up, combined with increased direct availability, pushed vacancy to 11.7%.
- Five speculative projects totaling 1.8 million sq. ft. delivered during the quarter, with no preleasing completed.
- Net absorption measured negative 377,000 sq. ft., an improvement from negative 476,000 sq. ft. in Q1 2026, but still indicative of demand lagging recent supply additions.
- Average asking rents increased by only one cent quarter‑over‑quarter to $1.15 per sq. ft. NNN, while construction activity continued to slow, with 1.7 million sq. ft. underway, down 61.9% year‑over‑year.
- Small‑bay space (under 50,000 sq. ft.) in Kent Valley and Tacoma outperformed larger formats, supported by steadier tenant demand.
- Vacancy rose with building size—particularly in Tacoma, where mid‑bay vacancy (100,000–499,999 sq. ft.) rose to 20.4% and big‑box vacancy (500,000+ sq. ft.) remained elevated at 21.7%.