2015 has been the best year for industrial sector of Puget Sound region's commercial real estate industry.
According to Puget Sound Business Journal, it's the best year since 2016, with big new developments rising but barely able to meet tremendous demand. As an effect, rents are skyrocketing, urging investors to considering buying. It has been reported that about $2.4 billion worth of properties were transferred from one owner to another in 2015. That amount is up an overwhelming 202 percent from last year as reported by the Real Capital Analytics.
The new figures only show that contrary to the conventional thinking of most people that the industrial market is unappealing with its dull an unstylish buildings compared to the modern and glassy one in the office market. The publication points out to the developments Amazon.com is building in Seattle, which reportedly helps drive the growth in the industrial sector.
Also worth mentioning are the aircraft production at Boeing that are also at record levels and the wage increase at Microsoft, which also contributes to the expansion in the sector, according to Randy Gilliam of commercial real estate firm Kidder Mathews.
Basically with such expansion, people are equipped with more income to buy more things, and this stimulates Puget Sound region's economy.
A small increase in the international trade sector is also helping the growing industrial market. According to Kidder Mathews, through November of last year, year-to-date container volumes at the Seattle and Tacoma ports increased by 6 percent and November's volume was higher by 18 percent that November 2014.
Meanwhile, according to Puget Sound Business Journal, another firm Colliers International reports that the region's vacancy rate dropped to 3.9 percent at the end of 2015 even after 32 new buildings with nearly 4 million square feet in total space were completed. At the moment six additional buildings with a total of 1 million square feet are now under development.
