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8.5-MSF of Industrial Projects in Limbo

SEATTLE, WA-With lenders looking for significant preleasing before cutting construction checks and tenants looking at bargain rates in existing industrial buildings throughout Puget Sound, developers are planning but not breaking ground on new projects.

By Janet Parker | Updated on May 07, 2002

SEATTLE, WA-According to the Seattle office of Grubb & Ellis, there are 8,531,026 sf of new industrial construction space planned for Puget Sound. The brokerage house’s first quarter Industrial Construction Report lists a total of 75 new projects on the hunt for sufficient tenants to justify moving forward with cracking ground. However, one broker says most developers will have to pack a lunch for the wait.

Brian Dennehy is a Kent Valley industrial specialist with the Seattle office of Grubb & Ellis. He tells GlobeSt.com, “It seems we’re in a lull all the way around. A lot of tenants are taking advantage of the tremendous renewal rates that are available, and we’re just not seeing many tenants looking out in the market.”

There were a couple of sizeable transactions (leases) in the first quarter,” says Dennehy, “but they were in existing buildings. It’s safe to say that right now tenants are going to get better deals renewing where they are or going with existing facilities than they will with new construction.”

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