The Puget Sound industrial market had a brief pause during Q2 2020 as tenants pivoted to deal with new economic realities. Though the short term reflects disruption as some retailers, wholesalers and the aerospace industry are being forced to shrink their footprint, demand is expected to grow in the long-term due to the rapid adoption of e-commerce.
Despite the decrease in absorption and increase in the vacancy rate in the Kent Valley, the development landscape remains strong. As of this report, there is over 1.4 million sq. ft. under construction.
Developer interest in Tacoma was fueled by a steady stream of tenant requirements. During Q2, PCC Logistics signed a lease for 340,461 sq. ft. at the former SuperValu building.