Matt McLennan, SIOR, CCIM

Education

Bachelor of Science in marketing, University of Arizona, Tucson, Arizona.

Matt graduated from the Eller College of Management at the University of Arizona in Tucson, Arizona. Matt was involved in several organizations on campus and held leadership positions that include president of the Order of Omega Greek Leadership, vice president of the Bobcats Senior Honorary, recruitment coordinator for the Sigma Chi Fraternity, and 4-time winner of the Arizona High Regents Honor.

Community Involvement

MEMBER SIOR (Society of Industrial & Office Realtors)
MEMBER CCIM (Certified Commercial Investment Member)
MEMBER IAMC (Industrial Asset Management Council)
BOARD MEMBER Economic Development Board Tacoma-Pierce County
MEMBER WSCAR (Washington State Commercial Association of Realtors)
MEMBER CBA (Commercial Brokers Association)
MEMBER Fircrest Golf Club
COACH Tacoma Recreational Softball

Industrial Edge Newsletter

Market Highlights – March 2023
 
It’s been an interesting, mostly uneventful, beginning to the year. We all know now that we hit our “peak” back at the end of 2021/early 2022, the end of which was tied with the beginning of the interest rate hikes. Fast forward to today and we are still expecting continued interest rate hikes in the immediate future, with upwards of another 0.5% hike expected out of the March 22 meeting. What does this mean for the Puget Sound Industrial market? Well, most notably, a continued slide in sale transactions. Money is more expensive, and consequently, yesterday’s values simply don’t make sense today. Consequently, unless you are a necessary seller, you’re probably sitting back and enjoying your current favorable debt structure while keeping your head down focused on your business or investment goals. It’s not all doom and gloom though. The other primary segment of our market, leasing, remains robust. Rent growth has continued in the early months of this year. We’re at historic highs on rents and historic lows on vacancy. Simply put, demand remains strong, and supply is slow, which is bolstering up the overall marketplace. There has been a noticeable uptick in the amount of sublease warehouse space available which will be interesting to watch. I anticipate it will lead to some small upticks in vacancy; however, with the development pipeline shrinking in future years (2024+), I also believe that even if vacancy rises in the short-term, it will then fall again, and quite possibly dramatically, in the longer term (3-5 years).

As always, please contact me any time if you’d like to discuss this or a more specific analysis.
 

 
For archived reports, please contact Matt.