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- Market Mondays: Seattle, WA - Dec 23, 2024
Market Mondays: Seattle, WA - Dec 23, 2024
YardDogs check out the IOS market in Seattle
YardDogs -
Welcome back! In this edition of Market Mondays we take a look at IOS in Seattle, WA and the Puget Sound area. We outline why the Puget Sound and Seattle area is so important to the region, and at the end of the newsletter we’ve highlighted some of the recent trades and a few YardDogs in this market!
In today’s email:
Overview: Seattle is more than tech bros and coffee (though it has a lot of both of those). The important port and impressive freight connectivity across the Seattle Metroplex makes it a critical location and gateway to the West Coast. The volume of inbound and outbound goods makes it a great region for IOS.
Acquisitions: There is institutional interest in the region, with the Seattle / Tacoma attracting investors attention and underlining the region’s broad appeal.
MARKET OVERVIEW
Seattle, WA
Why Seattle?
Seattle’s metropolitan population reached approx 3,549,000 people in 2024. This is a 0.85% increase from 2023. The city has experienced unique population increases with a lot of changes attributable to the different “boom/bust” eras.
Seattle is strategically located and well positioned for logistics in the region with the 8th busiest ports in the US. The Northwest Seaport Alliance is a marine cargo operating partnership of the ports of Tacoma and Seattle that was formed in 2014. The first of its kind in North America, the NWSA is the fourth-largest container gateway, and a key economic transport hub.
The Northwest Seaport Alliance in Washington state is a key trade hub, handling $73 billion in annual trade, 80% of Alaska’s U.S. trade, and Hawaii shipments. It supports 48,000 jobs and generates $4.3 billion in revenue, connecting the U.S. to Asia and beyond.
In addition to the seaport, the Seattle-Tacoma International Airport (SEA) provides access to hundreds of domestic and global destinations, and economic activity that supports tens of thousands of jobs and produces $22 billion in economic activity.
A system of marine terminals, railroads, roadways, and airports supports industrial activities in Seattle’s Manufacturing and Industrial Centers (MICs) by facilitating critical freight movement. The Ballard Interbay MIC focuses on marine and transportation uses, with commercial fishing generating significant truck traffic for processing and storage. The Duwamish MIC emphasizes transportation, warehousing, and manufacturing, featuring intermodal rail terminals, marine terminals, and Boeing Field, which includes 17 acres for air cargo.
Top Companies to Know in Seattle
Amazon
Boeing Commercial Airplanes
Microsoft Corporation
Starbucks Coffee Company
Costco
Weyerhaeuser
Nordstrom
REI
Alaska Airlines
The Bill & Melinda Gates Foundation
Check out this link for a full list
IOS Market Trends
While the industrial market has seen negative absorption but positive leasing velocity in the warehouse space, the demand for IOS remains mainly reliant on the health of the port and intermodals. Industrial Outdoor Storage properties appear to be well positioned in this region due to the importance of the port and freight network. This market is also particularly supply constrained due to it’s location on the coast and the limited availability of developable land in the Seattle metroplex, which makes any existing IOS sites more valuable.
CLOSED TRANSACTIONS
Acquisitions and Dispositions
ACQUISITION: In June, RealTerm acquired 805 140th Avenue Court E, an industrial outdoor storage (IOS) maintenance facility featuring 18,800 SF on 4.3 AC in Sumner, Washington. Kermit Jorgensen of Neil Walter Company represented Realterm and facilitated the transaction.
ACQUISITION: Dalfen acquired two IOS sites in the Seattle-Tacoma area in Washington. 214 21st Street SE in Auburn was acquired with highly accretive seller financing and is fully leased to one tenant. 8328 South Tacoma Way in Lakewood was acquired and Dalfen signed a ten year lease with a large regional landscaping company concurrently with the closing of the Lakewood site. Dalfen team includes Rich Weiss and Mike Cohen.
ACQUISITIONS: Zenith announced the acquisition of a fully stabilized 4-acre chassis storage site in Seattle in October. Vihn Thai collaborated with Scott Alan, SIOR of Cushman & Wakefield on this opportunity.
MORE SEATTLE YARDDOGS: Kidder Matthews - Matt Murray; CBRE - Ketner Sheean, Lane Bockman, Andrew Stark, Zac Snedeker; Lee & Associates - Zane Shiras, Kyle Prosser, Tom Brown; NAI Puget Sound Properties - Kyle Schipper, Dave Douglas, Tamir Ohayon, Hans Swenson, Ally Braden, John Vernon, Bob Swain
Know of other great Seattle/Puget Sound IOS acquisitions or YardDogs that we missed?
Send an email to [email protected]. We answer every email you send our way and love to hear from you!
Disclaimer: The authors of IOS YardDogs are not finance or tax experts. We love big yards, small buildings. This email is for educational uses and is not financial / investment advice. Please conduct independent research and consult with industry professionals before making financial or investment decisions. Our content, which may contain affiliate links, is subjective and not to be used as the only basis for such decisions. We are not responsible for any losses from relying on this information.