The 21-million-sf Auburn submarket came in third, posting positive net absorption of 143,000 for the quarter and 126,000 sf for the year. Vacancy in the warehouse and distribution sub market is now 6.8%, according to the report, with only 22,000 sf under construction. The average asking rate in the submarket is $0.38 per sf per month.

The worst performing area was the R&D/flex-heavy Woodinville submarket, which posted 113,000 sf of negative net absorption for the quarter. Year-end net absorption also was negative, at -130,000 sf. Vacancy in the market is now 15.6%. No construction is under way in the market, where the average asking rate is $0.59 for warehouse and distribution space and $0.64 for R&D/flex space.

The 37-million-sf Kent market, the largest industrial market in the region, also posted a lackluster quarter, with 83,000 sf of negative net absorption. For the year, though, net absorption was a positive 224,00 sf. Year-end vacancy was 11.8%, with 90,000 sf under construction. The average asking rate in the sub market is $0.36 for warehouse and distribution space and $0.50 for R&D/flex space.

The big deals of the quarter included: Teacher's Insurance and Annuity Association of America paying $53.8 million for Rainier Corporate Park and Rainier Corporate Park East in Fife, which total 1.1 million sf; AMB Property Corporation acquiring eight industrial buildings near SeaTac from International Airport Centers as part of a $481-million, seven market deal; Volvo Logistics North America leasing 195,700 sf at Kent North Corporate Park on 80th Ave S in Kent, and; Weathervane Window leasing 105,103 sf at Springbrook 188 Distribution Center, also in Kent.

The big news of the quarter was Boeing's decision to assemble the new 7E7 "Dreamliner" in Everett. The decision is expected to bring 800 to 1,200 new jobs to the region. Panattoni and Intracorp stand to benefit, as both have projects planned in the Northend sub market to accommodate future growth.