Seattle is one of the West Coast's most important logistics gateways. The Northwest Seaport Alliance (NWSA), which manages cargo operations across the Seattle-Tacoma gateway, handled 3.3 million TEUs and roughly $76 billion in waterborne trade in 2024, supporting over 52,000 jobs statewide — with double-digit TEU growth carrying into 2025.¹ Its proximity to Asia gives it one of the shortest trans-Pacific transit times of any U.S. port, and a new BNSF/Norfolk Southern intermodal service moves cargo from ship to Chicago in just six days (which is the fastest of any Pacific Northwest gateway).²

Beyond the logistical importance, the Seattle metro area surpassed 4.5 million residents in 2025, with the city itself posting its fifth straight year of 2%+ growth, making it one of the fastest-growing major cities in the country.³ This population growth increases the need for housing, businesses, and services across the city.

In terms of IOS, the Puget Sound IOS market remains active despite broader industrial softness, with more than 1,000 IOS properties tracked across core submarkets including South Seattle, Kent Valley, Auburn, and Tacoma.

A Snapshot of Select Seattle IOS Trades Since 2023:

John Broom from KBC Advisors provided the below insights:

Leasing activity has remained steady, with 49 deals completed over the past 18 months, reflecting continued demand from core IOS users across the region.

The Kent Valley (Tukwila/Kent/Renton) represents the largest concentration of IOS inventory, followed by South Seattle and the Auburn/Sumner/Pacific corridor. Tacoma and surrounding submarkets continue to offer larger-format sites and more flexible configurations, while South Seattle remains the most supply-constrained submarket given its proximity to the port.

Average asking yard rates across the market are approximately $0.40/SF/month, with South Seattle commanding a premium (~$0.50/SF/month). Pricing trends lower in outer submarkets like Tacoma (~$0.31/SF/month) and Auburn (~$0.35/SF/month), where users can secure larger footprints at a relative discount.

Primary tenants in Seattle are Equipment Rental (~20%), Construction and Building Materials (~20%), and Services and Transportation & Logistics combined at ~25%.

IOS fundamentals in Seattle remain resilient, even as broader industrial conditions stay mixed.

Port activity has softened, with Q1 TEU volume through the Northwest Seaport Alliance (Seattle/Tacoma) hitting its lowest level since 2010. Despite this, IOS fundamentals have held firm — vacancy declined quarter-over-quarter, indicating demand is being driven by non-port-dependent users.

While port-related tenants, particularly trailer storage and 3PL groups, have taken a more cautious approach, core users including equipment rental companies, transportation providers, and utility-related operators continue to drive consistent demand across the region.

Demand remains concentrated in South Seattle and the Kent Valley, where access to major arterials and port infrastructure supports a wide range of IOS uses. Larger, well-located yard sites, especially paved, fenced, and functional properties, remain scarce, sustaining competition for quality assets.

Zoning constraints and limited industrial land continue to restrict new supply, reinforcing the value of infill sites. Well-improved assets are maintaining strong leasing velocity, while lower-quality yards increasingly require capital investment to remain competitive.

ACQUISITION: Jadian IOS acquired a 3.8-acre industrial service facility at 2117 E River Street in Tacoma, WA, totaling 10,000 SF. Located within the Port of Tacoma district with access to all port terminals, the site offers strong connectivity just one mile from I-5 and 25 minutes from Seattle-Tacoma International Airport. The property includes a 10,000 SF covered canopy on a semi-paved yard.

ACQUISITION: Steel Peak has acquired an industrial outdoor storage (IOS) property located at 515 South 96th Street in Seattle, Washington, for $5.75 million. This is Steel Peak’s 10th IOS property acquisition on the West Coast since the company was founded in January 2024.

LEASED: CenterPoint Properties leased a 3-acre industrial outdoor storage site totaling 130,680 square feet at 8249 5th Ave South in Seattle, WA, near the Port of Seattle.

ACQUISITION: Realterm acquired 19929 77th Avenue S, a 5.4-acre IOS facility in Kent, WA, located in one of Seattle’s premier industrial submarkets. The site includes a 12,640 SF shop building, a 1,517 SF office, and features drive-through bays, wash bays, a truck scale, and direct rail access. Realterm plans significant capital improvements, including roof replacement, upgraded electrical and lighting, new paving, enhanced fencing, and a modern security system. The property is currently vacant and available for lease.

Please reach out to the KBC Team for more information on the below.

FOR LEASE: This ±4.5-acre industrial outdoor storage site at 7800 S 206th St in Kent, WA is available for lease, featuring 15,000 SF of covered storage along with 4,645 SF of office and 785 SF of shop space. The property offers a fully paved and fenced yard with lighting in place, 19’–22’ clear heights, and IH zoning, making it well-suited for a range of outdoor storage and service-oriented uses. Located in the Kent Valley with strong access to major arterials, the site provides a functional layout for equipment storage, fleet operations, and contractor users.

FOR LEASE: This ±3.4-acre industrial outdoor storage site at 9845 MLK Jr Way S in Seattle totals approximately 147,595 SF and is available for lease with immediate access to I-5. The property features a fully fenced, paved, and lit yard with 10-inch reinforced concrete and dual points of ingress/egress, supporting efficient circulation for fleet and outdoor storage users. Offered at an asking rate of $0.45 PSF, the site is well-positioned for logistics, contractor, and equipment-driven tenants seeking scale in a core infill location.

FOR LEASE: This ±2.2-acre industrial outdoor storage site at 635 S Edmunds St in South Seattle offers a rare infill leasing opportunity with strong visibility and immediate access to I-5. The fully fenced and paved yard includes LED lighting, 600-amp 3-phase power, and a modular office/storage container setup, making it well-suited for contractor, fleet, and service users. With rail siding potential and availability on 90 days’ notice, the site provides flexible functionality in one of Seattle’s most supply-constrained IOS submarkets.

FOR SALE OR LEASE: This ±18-acre industrial outdoor storage site at 8531 East Marginal Way S in Tukwila, WA is available for sale or lease, offering a rare scale opportunity in the Seattle infill market. The property provides a large, usable yard configuration ideal for fleet storage, equipment staging, and logistics users seeking immediate functionality.

FOR LEASE: This ±6.10-acre industrial outdoor storage site at 10720 26th Ave S in Lakewood, WA offers 32,142 SF of improvements, including office, light industrial space, service garage, and storage across four buildings. The property features a paved and graveled yard with 14’–20’ clear heights, grade-level doors, and an overhead crane, supporting a wide range of industrial and service uses. Positioned with strong visibility along WA-512 and zoned Air Corridor 1, the site is well-suited for contractors, fleet operators, and equipment-intensive users seeking functional yard space.

John Broom
Associate Broker
[email protected]
Direct: +1 206 877 2750

Matt Murray, SIOR
Executive Vice President
[email protected]
Direct: 206.248.6541

Gravatos - Industrial Outdoor Storage Data Intelligence Platform. (Link)

1. Port of Seattle - "Maritime Cargo Comings and Goings 2024" https://www.portseattle.org/blog/maritime-cargo-comings-and-goings-2024

2. Northwest Seaport Alliance - "NWSA Q1 2025 TEU Volumes" https://www.nwseaportalliance.com/newsroom/nwsa-q1-2025-teu-volumes-19

3. Puget Sound Regional Council - "Region Surpasses 4.5 Million Residents in 2025" (July 2025) https://www.psrc.org/media/9755