The Seattle Close-In market is generally defined as the area from SoDo (just south of downtown Seattle), south to the intersection of I-5 and SR-599, which is about 1.5 miles north of I-405. It totals 58,187,748 sq ft of industrial space. The market consists of predominantly older and often functionally obsolete facilities, many of World War II era construction. Increasingly, the market is shifting towards a make-up of institutional ownership, but is still largely owned by owner/user, private and governmental entities.
During the 1st quarter 2019, the close-in market increased its vacancy level to 3.3% from 2.64% at the end of 2018, as a result of -327,465 sq ft of negative absorption during the 1st quarter. This increase in vacancy is almost entirely attributable to the completion of the 589,000 SF Georgetown Crossing. The historical low vacancy for the close-in market was achieved at the end of 2017 at 1.47% vacant. The previous peak market was mid-2008 reaching a low of 3.11% vacancy.
Prologis began construction on Georgetown Crossings in April 2017, which is the first multi-story development of its kind in this market. The project is now complete and is 589,615 sq ft on three stories. HD Supply leased 97,000 SF on the first floor. The balance is still available. Quoted rates are $1.35 PSF, NNN/month for floors 1-2 and up to $2.00 for the top floor.