Grubb & Ellis pegs the overall industrial vacancy rate at 10.7% as 2003 comes to a close. Standard industrial space has a 9.9% vacancy rate, according to the firm, while research and development/flex space is 16.2% vacant.
Meanwhile, CB Richard Ellis Inc. reports vacancy crept up to 7.73% in the area's largest submarket, Kent Valley, in the fourth quarter. The situation is not likely to improve as 638,092 sf of industrial space is under construction in the 95-million-sf submarket. That represents all but 44,262 sf of new construction in the entire 206-million-sf Seattle industrial market, according to CB Richard Ellis.
Already showing signs of improvement, according to CB Richard Ellis, is the 70-million-sf "Close-In" submarket, where vacancy dropped slightly to 5.05%. The submarket also has the highest net lease rates at $5.40 per sf, according to CBRE.
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