July 24, 2015

JLL report: industrial market is ‘white hot'

Almost 1.2 million square feet of new industrial space has opened so far this year in the region, another 3 million square feet is under construction, and industrial vacancy rate is at its lowest point since the recession.

Jones Lang LaSalle reports that the vacancy rate for industrial space from Tacoma to Everett was 4.3 percent at the end of the second quarter.

Developers have completed more than 6 million square feet of new industrial space since the beginning of 2013. The regional industrial market totals more than 274 million square feet.

Big tenants are driving the market today. JLL reports that seven leases for more than 200,000 square feet were completed in the second quarter, most of them in the Kent Valley and Pierce County.

The biggest lease in the southend was a renewal of Kimberly-Clark's 516,748-square-foot space at 22001 84th Ave. S. in Kent.

So far this year, tenants have taken 1.67 million square feet.

JLL reports there are 26 blocks of more than 100,000 square feet available in the region and said 23 tenants are seeking more than 100,000 square feet. Overall, JLL said, there are 123 tenants in the market looking for more than 8 million square feet.

Three tenants are looking for more than 500,000 square feet. JLL reports they may be out of luck, at least temporarily, because there are no spaces that large available.

But JLL expects even more construction in the near future as developers and land owners in key areas speed up plans so they can to take advantage of a “white hot” market.