Latest / Industrial Advisors / Puget Sound Leasing Surges: 1.3M Sq Ft Signed!

Transcript

Puget Sound Leasing Surges: 1.3M Sq Ft Signed! · Industrial Advisors

• 0:00
  I would say the last three, four weeks is the most active we've seen in a
• 0:03
  long time, and it's a nice change.
• 0:05
  So about 1.3 million feet of deals in the last three weeks signed.
• 0:11
  And that's just five deals that we're talking about?
• 0:13
  Yeah.
• 0:13
  There's been other deals.
• 0:14
  There's a lot more, yeah.
• 0:15
  Yes.
• 0:15
  So there was a 600 and.
• 0:17
  12,000 square foot deal that we were involved with in Tacoma that
• 0:20
  was, uh, with an existing tenant that was in 440,000 square feet.
• 0:39
  Welcome to our Industrial Advisors podcast.
• 0:42
  If you have Bill Condon and Matt McGregor.
• 0:44
  We're doing a five minute Friday and today's topic is gonna be recent leasing
• 0:49
  velocity in the Puget Sound Market.
• 0:51
  We've actually had a number of deals done in the last, call it 14 to to 20
• 0:56
  days that have been sizable and it's been great to see because there's been a
• 1:00
  lot of talks about tariffs and what the impact on the marketplace and we've had
• 1:06
  a really active two weeks of of leasing.
• 1:08
  I would say the last three, four weeks is the most active we've seen in a
• 1:12
  long time, and it's a nice change.
• 1:14
  So about 1.3 million feet of deals in the last three weeks signed.
• 1:19
  And that's just five deals that we're talking about?
• 1:21
  Yeah.
• 1:22
  There's been other deals.
• 1:22
  There's a lot more, yeah.
• 1:23
  Yes.
• 1:24
  So there was a 612,000 square foot deal that we were involved
• 1:27
  with in Tacoma that was, uh, with an existing tenant that was in.
• 1:30
  440,000 square feet, but then expanded into another approximately one 70.
• 1:35
  Mm-hmm.
• 1:35
  So it was great to see that company take on an additional 170,000 feet for a total
• 1:40
  of, again, about 612,000 square feet.
• 1:42
  And that was a, that was a five year deal.
• 1:44
  That's a, that's a sizable deal right in the middle of all this stuff.
• 1:47
  That's right.
• 1:47
  And then we had two sports deals.
• 1:49
  Yeah.
• 1:50
  So we had a tennis deal.
• 1:51
  That we did good credit, 126,000 feet, and then there was another
• 1:55
  43,000 foot pickleball deal.
• 1:58
  That's the third pickleball deal that I'm aware of in the last two quarters
• 2:02
  that have landed, and that one was in Auburn at the old Auburn 18.
• 2:05
  Yeah.
• 2:06
  It's interesting to see some of these.
• 2:07
  Sports uses, actually these deals happen, you know?
• 2:10
  Yeah.
• 2:10
  We used to see 'em a lot and you know, landlords were a little
• 2:13
  reluctant to do the deals.
• 2:15
  Now these entities are becoming, you know, more proven and like this tennis deal.
• 2:20
  Your money behind.
• 2:21
  Yeah.
• 2:21
  More money behind, like this tennis deal, for example, they
• 2:23
  have a couple different locations.
• 2:24
  They have been up and running for a number of years.
• 2:26
  Good financial backing behind it, and just given the popularity of.
• 2:30
  Of tennis and pickleball and, and, and everything else.
• 2:32
  That's, uh, it's, it's nice to see some of these deals start to happen.
• 2:35
  Well, I think the history of 'em, why people didn't want to do 'em is number
• 2:38
  one, you never wanna involve like.
• 2:40
  Kids and activities like that and truck courts.
• 2:43
  Mm-hmm.
• 2:43
  Right.
• 2:43
  Yeah.
• 2:43
  So first I think landlords are now looking at it saying, okay, if we have a building
• 2:47
  that's not a shared truck court or, or an independent building that we could do this
• 2:52
  in where we're not putting people at risk and combining that industrial activity.
• 2:56
  And then secondly, to your point.
• 2:58
  They're much bigger credit deals.
• 3:00
  It's not your Bill Conn wants to practice a a u basketball and Yeah.
• 3:04
  Forms together a couple guys and signs a lease.
• 3:06
  Now it's big entities, big money behind these.
• 3:09
  Yeah, my credit would be just fine like that.
• 3:11
  Bill Con Enterprises.
• 3:13
  Yeah.
• 3:13
  So, and then there was, there's two other deals.
• 3:15
  There was the, you know, the three 20 done in Frederickson?
• 3:17
  Yes.
• 3:18
  With the pharmaceutical group.
• 3:19
  And then there was the deal done in Auburn that Prologis did
• 3:22
  that was 200,000 square feet.
• 3:25
  Pini Pini.
• 3:25
  Yeah.
• 3:26
  Yeah.
• 3:26
  Pini.
• 3:26
  It was a coffee deal.
• 3:27
  Yeah.
• 3:27
  Green coffee I think for Starbucks contract, if I remember.
• 3:31
  Okay.
• 3:31
  Yeah.
• 3:31
  But I know it's a coffee deal, but yeah, so in that building, it's at a while.
• 3:33
  So.
• 3:34
  All of a sudden we've got that and we're tracking other deals in the market.
• 3:38
  We think there's about another 2.2 million feet of active larger deals.
• 3:43
  We're not throwing everything on there, but that's a lot of activity
• 3:46
  right now, and we've only really seen one or two deals fade away.
• 3:51
  I. Because of the tariff situation.
• 3:53
  It's actually created some deals.
• 3:55
  It's created deals.
• 3:55
  And the deal that went, uh, you know, we were involved with one deal that
• 3:58
  hit pause on the tariff situation.
• 3:59
  They didn't tires, it didn't go away.
• 4:01
  Tire deal.
• 4:01
  And they think they'll come back.
• 4:02
  Yeah.
• 4:02
  So, but the other nice thing about these deals that have happened is it's
• 4:06
  been spread out through our market.
• 4:07
  So you have Tukwila.
• 4:08
  You have Tacoma, you have F Fredrickson, you have Auburn.
• 4:12
  So they're happening in these these different cities,
• 4:14
  which is also good to see.
• 4:15
  Yeah.
• 4:16
  Spread out diversification of different types of tenants, but positive absorption.
• 4:20
  Yeah.
• 4:21
  I think it's just that it's, it's good news in a market where you're
• 4:24
  hearing a lot of uncertainty.
• 4:26
  We got five really good deals that just got done that were
• 4:29
  sizable, so That's right.
• 4:30
  Good news for the marketplace.
• 4:31
  Happy Friday.