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October 25, 2018

On the Block: Panattoni pounces on DuPont site in Pierce County's tight logistics market

Seattle Daily Journal of Commerce

Brian Miller

I could cite an equally long list of projects from Prologis or CenterPoint Properties Trust. All that activity is reflected in the midyear industrial report from Marcus & Millichap, which came out this month. M&M puts the regional vacancy rate at 3.5 percent (at the end of the second quarter), calling that "one of the lowest vacancy rates in the nation."

For the first time in eight years, says M&M, industrial space completion is actually exceeding absorption. About 4.6 million square feet are underway in Pierce County, compared to 2.6 million in King County.

And by year's end, M&M forecasts annual rent growth of 9.3 percent, rising to $9.80 per square foot.

Looking at Pierce County only, Kidder Mathews puts the vacancy rate at 3.9 percent. KM's Ty Clarke wrote this summer that big development sites close to the Port of Tacoma were getting harder to find - and therefore more expensive. For that reason, "Developers are starting to look towards outlying markets such as Frederickson and Lacey as the next vein of construction, largely due to site size and zoning."

And as the Griots can attest, add DuPont to that list.

For the full story, go to the Seattle Daily Journal of Commerce.

©2018 Seattle Daily Journal of Commerce

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