Puget Sound industrial market ends 2025 with elevated vacancy and muted demand
The Puget Sound industrial market ended Q4 2025 with vacancy at 10.2%, unchanged from the prior quarter but still marking a historically high level for the region. Despite modest tenant activity, demand continued to lag new supply. Year-to-date net absorption totaled just 1.1 million square feet (msf), down from 2.1 msf in 2024. East Pierce County led the region with 1.8 msf of positive absorption, supported by large build-to-suit projects and leasing in recently delivered product. However, overall absorption remained limited amid broader economic caution and delayed decision-making. Notable Q4 transactions included The Home Depot’s 609,368-square-foot (sf) lease in Federal Way/Auburn and Republic National Distributing Company’s 287,832-sf renewal in the same submarket.