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2026 Market Momentum: Industrial Insights in the Puget Sound Market · Industrial Advisors

• 0:00
  It seems like, I don't know, the last 45 days, the market's really picking up.
• 0:05
  That's right.
• 0:06
  I think that there's good momentum, and I would say even like in
• 0:08
  the, you know, 20 to 50 range.
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  We have a handful of deals that we're looking at right now that that might
• 0:13
  get done by the end of the year.
• 0:29
  Welcome to our five minute Friday industrial advisors.
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  You have Bill Condon and Matt McGregor, and we're gonna talk about net absorption
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  and closing out the year and what things look like heading into 2026.
• 0:40
  So looks like we're gonna be about negative half a million feet on the year.
• 0:45
  Could be a little higher.
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  We were, if you look at our report, cbs, I think I looked at kiters.
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  Everybody was ranging between three and I think 600,000 feet,
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  so it could be a little bit higher that by the end of the year.
• 0:57
  Yeah.
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  Like let's say a negative million.
• 0:58
  Yeah.
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  So not, not a great year from absorption standpoint.
• 1:01
  No.
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  But there are some pretty big deals that are out there.
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  We're tracking, you know, anywhere roughly around 5 million feet of, of bigger
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  deals that are out there right now.
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  Just bigger deals.
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  Yeah, just bigger deals.
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  Yeah.
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  So we've got, yeah.
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  So changes are coming on absorption early in 2026, right?
• 1:16
  Yep.
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  With.
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  You know, it'd be a great way to start too.
• 1:19
  It would couple of these deals get inked in the first quarter.
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  Yeah.
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  Yeah.
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  So we think Amazon will likely be taking two of the large buildings that are
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  existed existing under, uh, that are completed and then they're rumor to be
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  taken another site that probably would, obviously wouldn't absorb next year if
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  nothing's built or started under contract.
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  But then we've got three or four other deals that are kind
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  of all 500 and north of that.
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  That would total that call four to 5 million of absorption that we're
• 1:45
  already looking at saying probably gonna happen, and that's great.
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  Then we always like to talk about the one to 200 range.
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  The nice thing is while that market still has a lot of vacancy.
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  There's some deals that are taking place in that size range.
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  It's changing, which is great.
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  Yeah.
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  And you can tell a lot by that market.
• 2:00
  Totally.
• 2:01
  Yeah.
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  I mean, we have one listing in that, well, we have a few listings in that size
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  range, as I think all listing brokers do.
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  All teams do that.
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  We hadn't had a proposal on in months, and all of a sudden we have three.
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  Right.
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  So a lot of tours, a lot of deals getting done.
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  A few inked last week in that size range.
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  And so I, I think changes are coming, it seems like.
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  I don't know, the last 45 days, the market's really picking up.
• 2:26
  That's right.
• 2:26
  I think that there's good momentum and I would say even like in the, you know, 20
• 2:30
  to 50 range, we have a handful of deals that we're looking at right now that that
• 2:34
  might get done by the end of the year.
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  So, so good activity, prediction, prediction on, uh, the end
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  of the year absorption.
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  And then, uh, prediction through two quarters of 2026,
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  I would say we're gonna end up.
• 2:47
  Call it negative, you know, 600,000 feet for the year, and then next year,
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  first half of the year, I bet we're PO on the positive side by 3 million
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  feet, halfway through 3 million.
• 2:56
  Okay, I'm gonna say we jump because of some deliveries to 1.2, to 1.5 on negative
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  absorption by the end of this year.
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  And I would agree with you.
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  I think we're gonna have a great year next year, but I do agree that it's
• 3:11
  not all going to ink in that time.
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  So I'd say three to 4 million feet by the end of Q2.
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  Yeah.
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  Yeah.
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  That would be a good first half of the year.
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  We'll take it.
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  Yes.
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  Yeah.
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  Yeah.
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  So thank you for listening.
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  Happy Friday.
• 3:20
  Happy Friday.