Industrial Advisors Q1 2026 Recap: Vacancy Hits 10.3%, Deliveries Drive Negative Absorption, Activity Rising

Bill Condon and Matt McGregor recap Q1 2026 industrial market conditions, noting overall vacancy reached 10.3% (first time above 10% in their careers) and net absorption around negative 1 million square feet, pressured by roughly 3.1 million square feet of deliveries and ongoing subleasing. Despite weak headline numbers, they cite increased leasing activity, including seven deals over 100,000 square feet (four new deals) and expect about 6 million square feet of large deals to be signed in coming quarters, with the hosts predicting positive absorption in Q2 followed by a strong year. Submarket vacancies include Pierce County at 12.8%, Kent Valley at 10.3%, North end 8.7%, Eastside 7.1%, and Thurston County 6.9%. Construction is slowing (about 1.5 million square feet under construction across four buildings), while investment sales totaled $226 million, led by Gateway North at $76 million and Aries' $40 million acquisition.

0:00 Intro and Q1 2026 Market Recap

0:45 Vacancy Hits 10.3%

2:05 Negative Absorption and What's Driving It

3:20 6 Million Square Feet of Large Deals Ahead

5:05 Submarket Breakdown Across the Region

7:10 Seven Leases Over 100,000 SF

8:30 Construction Pipeline Slows Sharply

9:40 Notable Investment Sales in Q1

11:15 Oldest Vacancies and Tenant Opportunities

13:10 Q2 Outlook and Market Forecast