It shows 711,191 square feet of negative absorption (or new vacancy) and a 96 basis point increase in vacancy to 6.66 percent in the fourth quarter. Rental rates in the Kent Valley have dropped as much as 10 to 15 percent in some areas with an increase in landlord concessions in the form of rent abatement for prospective tenants and existing tenants.

The Pierce County industrial market has shown continued stabilization and growth again in the fourth quarter with a 34 basis point decline in vacancy and 254,842 square feet of positive net absorption. It has become a target for many tenants exiting the Kent Valley to avoid potential flooding issues.

Industrial vacancies in Seattle close-in and the Bellevue-Redmond Eastside continue to grow, while Northend properties strengthened. The Everett central business district submarket has the highest industrial vacancy rate in the Northend at 28.6 percent.