Seattle Warehouse Market: Industrial Real Estate Dynamics in the Pacific Northwest
Ryan Fitzgibbon serves as senior vice president and Seattle market officer for Link Logistics, managing a diverse portfolio of warehouse and industrial properties across the Puget Sound region. With extensive knowledge of Seattle's industrial submarkets—from Kent Valley distribution centers to northeast Seattle's tech-oriented facilities—Ryan helps businesses navigate one of the fastest-growing major cities in the western United States. His expertise spans traditional warehouse and distribution operations as well as specialized facilities serving Seattle's technology sector and port-related logistics. In this Q&A, Ryan discusses Seattle's consumption-driven market dynamics, submarket characteristics and the economic fundamentals that continue to drive long-term demand for warehouse space in the Pacific Northwest.
What's driving demand for industrial real estate in Seattle?
Ryan: Seattle is a consumption-driven market. Most demand comes from servicing the population in the Seattle area and the wider Pacific Northwest. The city just surpassed 800,000 people for the first time and is growing at about 2-2.5% annually. To put that in perspective, San Francisco's population is 842,000 and has been shrinking, so Seattle is actually on pace to surpass San Francisco by the end of this decade.
What fuels this growth is Seattle's vibrant, diverse economy. We have 25 major Fortune 500 companies with significant presence here—household names like Boeing, Starbucks and Costco. Plus, two of the world's biggest companies are headquartered here: Amazon and Microsoft. With the evolution of AI, especially, those two companies are significant growth engines for the region. All of this means the underlying fundamentals that create demand for industrial space remain very strong, even when leasing activity fluctuates.
What emerging trends are shaping Seattle's industrial real estate market?
Ryan: We're seeing strong demand for quality industrial real estate in prime infill locations close to population centers and labor pools, with businesses willing to pay a premium for it. What's performing best are functional, high-quality, newer Class-A spaces in traditional distribution markets like Kent.
For example, we have an industrial property in Kent that was delivered in 2023 and is significantly outperforming traditional 1980s-vintage Kent Valley warehouses that lack modern functionality like ESFR sprinkler systems, truck courts built for today's equipment and adequate power infrastructure. These modern amenities—clear height, advanced sprinklers, trailer parking, robust electrical capacity—are becoming increasingly important to businesses that need warehouse space.
A lot of newer construction has happened at the market's edges, where land was available. But in the Seattle warehouse market, occupants prefer paying a premium for newer, well-located buildings in established distribution areas rather than settling for older facilities. We're actually planning a redevelopment project in Kent for next year, converting 1960s-vintage product into modern distribution buildings with all those amenities.
Can you explain Seattle's industrial submarkets and how they serve different business needs?
Ryan: The Seattle industrial real estate market is shaped by geography. Surrounded by water and mountains, the market stretches north and south of the city—about 120 miles from end to end. Different submarkets have evolved to serve different uses.
Just south of downtown Seattle, you'll find older industrial product from the 1940s and 1950s—that was the original post-World War II industrial area. As the population grew, warehouse development pushed further south into the Kent Valley, including Renton and Tukwila, with a lot of 1960s and 1970s warehouse construction. Kent is mostly 1970s and 1980s product with some newer facilities. It's a major distribution hub serving the wider Seattle area, with businesses there focused largely on consumer goods, construction supplies and other distribution needs.
Development then continued south to Sumner and the Port of Tacoma area. We have the Northwest Seaport Alliance here—the second-largest port complex on the West Coast behind San Pedro Bay in Southern California. There has been significant warehouse development around the port to support maritime logistics.
North of Seattle, particularly in areas like Everett, you'll find Boeing's airplane manufacturing operations and their supplier base. In the northeast submarkets like Woodinville, there's a different tenant mix. You see more high-tech users taking advantage of the educated labor force from companies like Microsoft—engineers who don't want a long commute. We recently closed a deal with a major aerospace technology company in that area, specifically because that's where their employees live. You also see advanced manufacturing, drone companies and last-mile delivery operations serving higher-income households in those northern submarkets.
How does Link Logistics support companies looking for warehouse space in Seattle?
Ryan: We have something fairly unique in Seattle: a significant Link Parks presence alongside our traditional industrial portfolio. Link Parks offers smaller commercial and industrial spaces—typically 2,000 to 5,000 square feet—creating a natural pipeline for growing businesses. Small businesses grow out of Parks because they're doing well and need more space, often with a year or so left on their lease. We can then transition them into our larger industrial facilities.
This means we can serve businesses across the full spectrum—from 2,000 square feet all the way up to 500,000 square feet and everything in between. This growth-oriented approach gives our customers flexibility that is hard to find elsewhere in the Seattle market.
What makes Seattle attractive for distribution and logistics operations?
Ryan: You're positioning yourself in a city with excellent underlying fundamentals. The customer base is growing, not shrinking. Seattle has one of the highest median household incomes in the country—nearly $125,000 annually—trailing only the Bay Area in terms of major West Coast metros. That means significant disposable income and strong consumer spending.
If you're trying to reach consumers with your products, Seattle offers a compelling distribution and logistics market. The population growth is steady, the economy is diverse and resilient, and the presence of major employers creates a stable business environment. Those fundamentals make Seattle an attractive long-term market for warehouse and distribution operations serving the Pacific Northwest.
Explore available warehouse and distribution space in Seattle to learn more about industrial real estate opportunities in the Pacific Northwest.
