Puget Sound industrial vacancy reaches new high as demand softens
The Puget Sound industrial market closed Q1 2026 with vacancy rising to 11.5%, increasing 230 basis points (bps) year over year and marking a new high for the region. Demand softened further, with net absorption totaling negative 0.8 million square feet (msf) year to date, a reversal from the modest positive absorption recorded in Q1 2025. Leasing activity remained concentrated among renewals and smaller transactions, with notable deals including HD Supply Facilities Maintenance’s 434,000-square-foot (sf) renewal in Kent and Mobis Parts America’s 181,000-sf renewal in Puyallup/Sumner. Overall tenant demand continues to lag the pace of recent deliveries as occupiers remain cautious amid ongoing economic uncertainty.