From the Canadian border to Oregon, Washington’s critical logistics spine shows mixed signals as developers bet big on long-term demand

The industrial real estate market along Washington’s I-5 corridor—stretching from Whatcom County at the Canadian border to Clark County at the Oregon state line—is navigating a period of recalibration with cautious optimism, according to a new report from Lee & Associates brokers Vanessa Herzog and Justin Froelich.

Vacancy rates averaged 6.29 percent across the corridor in the third quarter of 2025, edging down from 6.39 percent in the previous quarter—a modest improvement that masks more volatile dynamics in individual markets. The region absorbed negative 300,130 square feet over the past 12 months, meaning more space came back to market than was lease

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