Most of this quarter’s market activity precedes, and therefore does not reflect, any unfolding market impact due to the spread of the coronavirus (COVID-19) in Washington State.
Some of the largest industrial supply chains in the Pacific Northwest are now overwhelmed with demand. Certain segments of the economy have been deemed essential, such as manufacturers and distributors of important consumer goods, and the base of the Puget Sound industrial market is rooted in e-commerce and third-party logistics. However, the forecast for the rest of 2020 is unclear.
There is hope that the Kent Valley industrial market will be able to weather the sudden halt in economic activity. Multiple tenants signed large leases during the first quarter of 2020, with commencement dates scattered throughout the rest of the year.
The biotech industry, one which will likely grow as attention and funding are steered towards health care, consumed more space in the Eastside industrial market.
In Tacoma/Fife, net absorption totaled an impressive 607,001 sq. ft., largely due to Kimberly Clark’s new 747,488 sq. ft. lease commencing at the Cubes at DuPont.