The Registry
Major deals include BGO’s $176 million acquisition and Terreno’s $323 per square foot purchase as region adapts to cooling demand
The Puget Sound’s industrial real estate market is entering a new phase of restraint, with stakeholders across the sector—from developers to tenants—taking a more measured approach as conditions stabilize after years of rapid expansion. According to a third quarter industrial market report from Kidder Mathews, regional vacancy reached 8.2 percent in the third quarter of 2025, up from 7.1 percent at year-end 2024 and well above the 2.9 percent low recorded at the end of 2017. The 408.6 million square foot regional inventory, spanning six counties from Whatcom to Thurston, added 2.5 million square feet in the first three quarters of 2025.
“Growth is expected to
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