Puget Sound sees modest recovery as net absorption rebound
The Seattle/Puget Sound industrial market showed signs of improving balance in Q2 2025, as tenant demand picked up after a quiet start to the year. Year-to-date net absorption reached 1.3 million square feet (msf), more than doubling the 0.4 msf recorded in the first half of 2024. Despite several large leases—including Estes Forwarding Worldwide’s 612,612-square-foot (sf) renewal and expansion in the Port of Tacoma/Fife, and Kowa’s 320,294-sf new lease in East Pierce County—marketwide activity remained uneven. Lingering tenant caution and extended decision timelines continued to weigh on overall leasing volume. Vacancy remains elevated across much of the region, as demand gains have yet to keep pace with the steady flow of new product.