Savills’ Q3 industrial market report for Seattle and the Puget Sound area reveals lost momentum in the third quarter. Year-to-date net absorption declined to 1.1 million square feet, down from 1.8 million square feet during the same period in 2024.
While some large occupiers executed transactions, overall demand remained muted. Vacancy in the Puget Sound industrial market rose to 10.1%, marking a record high for the region. This represents a 130-basis-point increase year over year and underscores the market’s ongoing difficulty absorbing recent inventory expansion.
Year-to-date deliveries reached 3.4 million square feet, down from 4.5 million square feet during the same period last year. Projects under construction have also declined to 5.6 million square feet in the year to date. Sublease availability is expected to rise as tenants seek shorter, lower-cost commitments amid uncertainty and delayed decision-making in a volatile policy environment.
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