The 8.4-million-sf Northend sub-market sustained the largest pro-rata increase, with an up-tick of 2.9 percentage points. In the Kent Valley, the increase was only 0.53 points. But with a 72.67-million-sf sub market, that's another 385,000 sf of vacancy than was on the calendar as Puget Sound entered 2002.
By Colliers' measure, the Puget Sound industrial market (including King, Snohomish and Pierce Counties) now measures slightly more than 189 million sf. And, according to its calculations, the total vacancy now marks out at 9.88%--which translates to well over 18.5 million sf standing without tenants.
By comparison, this year's overall vacancy rate is close to doubling the figures from just a year ago. At the end of the first quarter 2001, Colliers says total vacancy for the Puget Sound market was at 5.34%--with direct running only 4.06%.
The Close-in Seattle market is still running relatively healthy numbers, even though deal velocity remains low. At the end of March, Colliers marks this 55.7-million-sf sub-market with a direct vacancy rate of 3.9% and a total of 4.21%. Vince DeLuca, a Collier's close-in industrial specialist, says, "Fundamentally I think it's still a solid market. There's not a lot for sale or a large inventory available for lease, so (deal velocity) is just a little bit above flat."
As for rent rate here, DeLuca says, "I've done a few deals recently, and we got what we asked for." He says rents--now $0.45/sf to $0.55/sf depending on the size of the property—have softened by a nickel or dime per square foot from the hot market of 18 months ago. Nonetheless, DeLuca characterizes the Close-in sub-market as "holding it's own."
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