The Emerald City is the fastest-growing industrial real estate market in the nation, according to a recent report by CommercialEdge. By July, the city’s year-to-date industrial real estate sales had already exceeded $1 billion, up 42% from the same time last year.
Seattle is one of seven U.S. markets with year-to-date industrial building sales over $1 billion. The others include Los Angeles, leading with $2.2 billion, as well as California’s Inland Empire region, Chicago, New Jersey and Atlanta. Of these, Seattle ranks no. 6 in sales.
In Seattle, industrial buildings were sold for a pricey average of $184 per square foot — one of the highest rates in the U.S. Only four markets are more expensive, with Orange County selling at $312 per foot, New Jersey at $204, the Bay Area at $192 and Los Angeles at $190.
In addition to its increasing sales and price per square foot, Seattle’s industrial rents are also rising. The city experienced a 5.2% increase in rent rates year-over-year, which is also one of the highest increases in the country. Nationally, the Inland Empire, Los Angeles, New Jersey and Nashville experienced higher rent increases than Seattle.
In total, Seattle’s industrial construction pipeline has more than 9.9 million square feet in progress, which is about 3.7% of its total stock. Though it has not achieved the same level of sales, Phoenix is leading the nation with 22% of its total stock either under construction or planned for construction.
So far in 2021, industrial real estate sales have surpassed $30 billion nationwide. With its disproportionate piece of this pie, Seattle has proven its desirability as a technology, biotech, aviation and warehousing hub.
This article was originally posted on Puget Sound Business Journal by Shawna De La Rosa.