Puget Sound Industrial Figures Q4 2023

January 8, 2024 10 Minute Read

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  • The Puget Sound Industrial market is in a cooling off period, after unprecedented market growth over the last three years. Aerospace has surged compared to previous years, but logistics and 3PLs are still the dominant tenants. 


  • In Tacoma, construction activity was on the upswing, totaling just under 5 million sq. ft. or 1.3 million sq. ft. more than the previous quarter. 


  • The Kent Valley market reported an 80 basis point (bps) rise in vacancy to 5.1%, bumping above the 10-year average of 4.9%. Leasing activity for 2023 however, was on par with the historic average, totaling 12 million sq. ft. per year. 


  • Looking ahead, Central Puget Sound has 8.1 million sq. ft. under construction and 31.9 million sq. ft. proposed, while the South Sound has 497,056 sq. ft. under construction and 21.2 million sq. ft. proposed.