Published May 2001

Brokers say outlook healthy for industrial space market

By Kathy Day
Herald Economy Writer

The vacancy rate for industrial space in Snohomish County jumped only slightly during the first quarter of 2001, and agents say they expect the market to remain healthy.

A Colliers International survey shows a 13.7 percent vacancy factor, up from 11.7 percent last quarter, while a report from CB Richard Ellis shows the rate at 14.2 percent.

Colliers’ Rich Larsen said he is optimistic about Snohomish County’s prospects for attracting tenants. Although about 300,000 square feet of space is under construction — on top of nearly 7 million square feet of existing space — tenants in search of build-to-suit facilities almost have to look this way, he said.

“There’s no land available on the Eastside,” he said.

Greg Riva of Colliers said another reason the northern industrial space outlook remains healthy is that there have not been “huge chunks of space coming back on the market.” As a result, users are scooping up new properties that were built on a speculative basis, he added.

Much of the new space offers higher ceilings, which are in demand for warehouse space, along with freeway access that is attractive to distribution companies.

In some cases, Arlington and Marysville are coming into play because they offer good rate decisions, noted Ryan Urquardt of Colliers.

Larsen points to Stanwood’s new business park as an example of the options users can find in the north end. Index Sensor and Controls left Redmond for the park, which is continuing to expand.

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