A Look at Washington State Industrial & Warehouse Lease Rate Analysis: Q4 2024 / Early 2025, from Green Rush Advisory Group, LLC

I. Executive Summary

This report details commercial warehouse and industrial lease rates across eight key Washington State markets: Seattle, Tacoma, Olympia, Vancouver, Spokane, Yakima, Shelton, and Bellingham, focusing on data from Q4 2024 and early 2025. The analysis synthesizes information from recent commercial real estate market reports and current property listings.

The Washington State industrial market, mirroring national trends, entered a phase of normalization in late 2024 after several years of intense growth. Key indicators point towards a market recalibration: rent growth has decelerated significantly from pandemic-era peaks, and vacancy rates have risen due to substantial new supply delivered in 2023 and early 2024.1 However, the pace of vacancy increase slowed in late 2024, suggesting a potential peak in the first half of 2025 as construction pipelines contract.1

Average asking lease rates exhibit significant variation across the state. Seattle remains the most expensive market, with estimated typical NNN (Triple Net) rates for warehouse/distribution space ranging from $14.00 to 19.00 per square foot per year(/SF/YR). Other Puget Sound and Southwest Washington markets like Tacoma, Olympia, Vancouver, and Bellingham generally fall into a mid-tier range ($10.00 – $16.00 /SF/YR NNN). Eastern Washington markets (Spokane, Yakima) and Shelton appear more affordable, with estimated ranges between $7.50 and $13.00 /SF/YR NNN. Data for smaller markets relies heavily on current listings due to fewer available market reports.

Market dynamics differ considerably. Major Puget Sound hubs like Seattle and Tacoma experienced rising vacancy (7-10% range) and negative net absorption in Q4 2024, reflecting adjustments to tempered consumer demand and tenant rightsizing, particularly among third-party logistics (3PL) providers.5 Despite this cooling, these markets command premium rents due to location and infrastructure advantages. Secondary markets show varied conditions; Vancouver (Clark County) demonstrated relative stability with positive absorption 8, while Spokane absorbed significant new deliveries in its West Plains submarket.9 Markets like Shelton show very limited available inventory based on current listings.11

Key factors influencing the market include slowing construction starts due to higher financing costs, which may lead to tighter supply by 2026.4 Tenant demand remains driven by e-commerce and logistics but is tempered by economic caution and consolidations.5 A “flight to quality” persists, favoring newer buildings, while smaller bay spaces (<10,000 SF) often exhibit tighter vacancy and stronger rent growth.1 The current environment generally offers tenants, particularly those seeking larger blocks of space, a window of opportunity for negotiation in 2025, while landlords focus on occupancy and concessions.15

II. Washington State Industrial Market Landscape (Q4 2024 / Early 2025)

Understanding the industrial real estate dynamics within specific Washington cities requires context from the broader national and regional market landscape as of late 2024 and early 2025.

National Context – Normalization Phase

The U.S. industrial market transitioned significantly during 2024, moving away from the exceptionally high demand and rapid rent growth seen in 2021-2022.17 This normalization is characterized by several key trends:

  • Moderating Demand: Net absorption, while remaining positive in many markets, slowed considerably compared to previous years. National net absorption totaled between 113.7 million square feet (MSF) 13 and 151.4 MSF 15 for the full year 2024, significantly lower than 2023 totals and closer to pre-pandemic averages.4 Some reports noted stronger performance in the second half of the year.1 Factors contributing to the slowdown included caution related to interest rates, inflation, potential East Coast port labor disruptions, and the impact of the general election on tariff policies.1
  • Rising Vacancy: Driven by a surge of speculative construction deliveries peaking in 2023 and early 2024, the national vacancy rate climbed throughout the year.1 Various sources placed the year-end 2024 national vacancy rate between 6.0% 15 and 7.1% 3, the highest levels since roughly 2014-2015. The pace of vacancy increase slowed notably in Q4 2024, suggesting vacancy rates might approach their peak in the first half of 2025.1 Vacancy was particularly high in the big-box segment (300,000+ SF), exceeding 10% nationally, while smaller spaces remained tighter.1
  • Decelerating Rent Growth: After multiple quarters of double-digit year-over-year increases, rent growth moderated significantly. National average asking rents rose modestly in Q4 2024, with annual growth around 4.5-5%.1 Some sources even reported slight quarterly declines in asking and taking rents.3 However, due to substantial growth during the pandemic, many lease renewals still occur at significantly higher rates.1 Certain markets, particularly on the West Coast including Puget Sound, experienced year-over-year rent declines.1

Puget Sound Region Overview

The Puget Sound industrial market, encompassing Seattle, Tacoma, and surrounding areas, largely mirrored these national normalization trends in Q4 2024, according to major brokerage reports 5:

  • Vacancy: Q4 2024 vacancy rates were reported across a range, commonly between 7.0% (Newmark 21) and 8.8% (CBRE 5). Cushman & Wakefield reported 7.7% for Seattle proper and 6.9% for the Eastside.6 Kidder Mathews cited 7.9% regionally 7, while Savills reported 9.4%.14 All sources indicated significant year-over-year increases, reflecting the impact of new supply and moderating demand. Sublease availability also reached record highs.21
  • Absorption: Net absorption was generally negative in Q4 2024, indicating more space was vacated than occupied. CBRE reported -1.4 MSF 5, Newmark -72,397 SF 21, and Kidder Mathews -60,000 SF.7 Savills, however, reported positive absorption of 1.0 MSF for the full year 2024, a recovery from negative absorption in 2023.14 Kidder Mathews noted substantial negative absorption (-2.1 MSF) continuing into Q1 2025.23 Specific submarkets like Kent Valley (-948k SF) and Tacoma (-81k SF) saw negative Q4 absorption.5
  • Rents: Asking rents showed signs of stabilization or slight decline after years of rapid growth. Newmark reported an average asking rent of $12.84/SF NNN for the Puget Sound region in Q4 2024.21 Kidder Mathews reported blended (office/warehouse combined) monthly rates in Q1 2025 around $1.42/SF for Seattle Close-In, $1.07/SF for the Southend, and $1.81/SF for the Eastside.23 Cushman & Wakefield noted that the Puget Sound-Eastside market experienced year-over-year rent decreases exceeding 10%.1

Southwest Washington (Vancouver Context)

Vancouver, situated within the Portland metropolitan area, benefits from data covering Clark County. Reports indicate a relatively more stable market compared to Puget Sound in late 2024 8:

  • Vacancy: Kidder Mathews reported a 6.5% direct vacancy rate for Clark County in Q4 2024.8 Lee & Associates reported 5.7% in Q3 2024.24 These rates are lower than those reported for the core Puget Sound region.
  • Absorption: Clark County saw positive net absorption of 126,627 SF in Q4 2024 8, contrasting with the negative figures in Puget Sound. This suggests steadier demand relative to supply in this submarket.
  • Rents: Kidder Mathews reported an average total rental rate of $0.96/SF/Month ($11.52/SF/YR) for Clark County in Q4 8, while Lee & Associates cited $13.81/SF/YR in Q3.24 These rates are generally lower than core Seattle but competitive within the broader region.

Eastern Washington Overview

Dedicated industrial market reports for Eastern Washington cities like Spokane and Yakima are less frequent than for Puget Sound.25 Available information suggests:

  • Spokane: The market saw significant growth in Class A warehouse space in 2023, with over 1.9 MSF of speculative construction completed, particularly in the active West Plains submarket near the airport.9 Absorption in 2023 was above historical averages at ~515,000 SF, with expectations for continued absorption in 2024.10 This new supply likely contributed to rising vacancy.9 Class A lease rates were reportedly flat in 2023, but small bay industrial rates increased significantly due to tight supply.10 Spokane is increasingly seen as an attractive investment hub, drawing interest from outside the area.10 High construction costs remain a challenge.10
  • Yakima & Other Markets: Specific industrial data for Yakima, Shelton, and Bellingham is sparse in the provided reports. Market conditions are likely driven by local economic factors and limited new supply compared to major hubs.

Key Economic Drivers & Headwinds

  • Construction Dynamics: The record volume of industrial deliveries nationally and regionally in 2023 and early 2024 was a primary driver of increased vacancy.10 However, a significant pullback in construction starts occurred throughout 2024 due to higher interest rates, a challenging lending environment, economic uncertainty, and rising construction costs.4 The under-construction pipeline shrank considerably.4 This reduction in future supply is expected to allow the market to absorb existing vacant space, potentially leading to vacancy stabilization or decline by late 2025 or 2026.13
  • Tenant Demand Factors: Demand remains underpinned by long-term structural shifts like e-commerce growth and supply chain reconfigurations.5 However, “tempered consumer demand” 5 and economic caution led many occupiers, especially 3PLs, to rightsize, consolidate operations, or postpone expansion plans in 2024.1 This contributed to negative absorption and increased sublease availability in some markets.5 Demand for high-quality, modern facilities (“flight to quality”) persists, often at the expense of older buildings.15 Smaller industrial spaces (under 100,000 SF) generally experienced tighter conditions and stronger demand compared to the big-box segment.1
  • External Factors: Elevated interest rates impacted both development feasibility and investment activity.1 Inflation, while moderating, continued to affect operating costs.1 Port activity remained a key factor for logistics demand, with potential labor negotiations posing risks.5 The labor market showed mixed signals, with overall growth but stagnation or declines in specific sectors like transportation and warehousing at times.7 Political and policy uncertainty surrounding elections and tariffs also influenced business planning.1

The statewide market clearly reflects national normalization trends, but the degree and timing vary. Puget Sound’s significant scale and previous boom resulted in a more pronounced cooling effect (rising vacancy, negative absorption). Southwest Washington (Vancouver) appears relatively more stable, possibly benefiting from its connection to the Portland market dynamics. Eastern Washington, particularly Spokane, seems to be operating on a slightly different cycle, still processing a wave of new development.

A crucial factor shaping the future is the sharp decline in construction starts.4 While current vacancy levels are elevated due to past deliveries outpacing recent demand, the shrinking pipeline of new supply suggests a potential re-balancing. If demand remains stable or recovers modestly, the market could see vacancy rates decline and pricing power shift back towards landlords in late 2025 or 2026. This dynamic creates a near-term window of opportunity for tenants, particularly those seeking larger spaces or willing to occupy Class B properties, as landlords prioritize occupancy.1 However, this window might narrow if construction activity remains subdued long-term. Developers, meanwhile, face significant near-term challenges for launching new speculative projects.

III. City-Specific Industrial/Warehouse Market Analysis

This section provides a detailed analysis of the industrial/warehouse market for each of the eight specified Washington cities, drawing from market reports and current online listings (primarily LoopNet).

Methodology Note: Data availability varies significantly. Market reports provide more comprehensive coverage for Seattle, Tacoma, Olympia (Thurston County), and Vancouver (Clark County). Analysis for Spokane, Yakima, Shelton, and Bellingham relies more heavily on LoopNet listing data due to the scarcity of recent, dedicated market reports in the provided materials. LoopNet data represents asking rates, typically quoted NNN for industrial properties unless specified otherwise. Listings may include various property subtypes (warehouse, distribution, manufacturing, flex) and reflect current availability rather than overall market averages.

  1. Seattle
  • Market Conditions (Q4 2024 / Q1 2025):
  • Vacancy: Reported Q4 2024 rates ranged from 7.0% (Newmark – Puget Sound) 21 to 9.4% (Savills – Puget Sound, KM – Seattle Close-In) 7, with C&W reporting 7.7% for Seattle proper.6 Kidder Mathews reported 8.3% for Seattle Close-In during Q1 2025.23 All reports noted year-over-year increases. High sublease availability was also a factor.21
  • Absorption: Generally negative in late 2024/early 2025 across Puget Sound, including the Seattle Close-In submarket.5
  • Reported Rents: Averages varied by source and methodology. Newmark cited $12.84/SF NNN for Puget Sound in Q4.21 Kidder Mathews reported blended monthly rates around $1.40-$1.42/SF ($16.80-$17.04/SF/YR) for Seattle Close-In.7 Lee & Associates reported a higher 22.02/SF/YRaverageforSeattleinQ32024.[24]∗∗Trends:∗Seattleremainsahighlydesirablelogisticshubduetoportaccess,butthemarketisadjusting.[5]Significantnewdeliveries,likethetwo−storySeattleMetroLogisticsfacility(702kSF),addedsubstantialinventory.[16,23,35]Leasingactivitywasreportedlyslowforspaceslargerthan10,000−20,000SF.[7,16]∗∗∗CurrentLeaseListingsOverview(LoopNet):∗∗∗∗Listings:∗47+warehouse/industriallistingsidentifiedintheSeattlearea.[36]∗∗Sizes:∗Broadrangeavailable,fromsmallflexspaces(<2kSF)tolargedistributionblocks(>80kSF),includingmulti−tenantparksandflexibleoptionslikeCubework.[36,37]∗∗Rates(/SF/YR):* Examples span a wide spectrum: ~$12.00 (Resource Building 36), $13.80 (S Hinds St 36), $14.00-$18.00 (Wallingford, Ballard 36), $24.00+ (N 97th St 36). Listings often include office components at higher rates ($25-$33+ 36). Listings geographically near Seattle (Tukwila, Kent, Renton) showed rates from $7.20 to $16+.37
  • Types: Mix of warehouse, distribution, flex, manufacturing, some with significant office portions. Includes older buildings and modern Class A facilities.
  • Estimated Average Lease Rate Range: $14.00 – $19.00 /SF/YR NNN. This range reflects typical warehouse/distribution space. Rates vary significantly based on specific location (Close-In being premium), building age/quality, size, clear height, and office finish. Flex and high-office spaces command higher rates, while older or peripheral properties may lease for less.
  1. Tacoma
  • Market Conditions (Q4 2024):
  • Vacancy: CBRE reported 9.8% for the Tacoma market.5 Kidder Mathews reported 8.4% for the broader Pierce County.7 Both indicated rising vacancy.
  • Absorption: Negative absorption reported: -80,790 SF (CBRE – Tacoma) 5 and -103,832 SF (KM – Pierce County).7
  • Reported Rents: Kidder Mathews reported stable Pierce County blended rates around $0.82/SF/Month ($9.84/SF/YR), with NNN shell rates ranging from $0.90-$1.30/SF/Month ($10.80-$15.60/SF/YR).7 Lee & Associates cited 10.19/SF/YR for Pierce County in Q32024. [24]∗∗ Trends: ∗Significant construction activity noted in Pierce County (5.4M SF underway). [7] Major leases occurred innear by Fife, Sumner, and Frederickson, indicating continued activity by large occupiers in the greater Tacomaarea. [21] ∗∗∗Current Lease Listings Overview (LoopNet): ∗∗∗∗Listings: ∗38 to 68+ warehouse / industrial listings identified for the Tacoma area. [38,39] ∗∗Sizes: ∗Wide variety, including very large blocks (e.g. Cube work up to 402kSF, USG 102kSF, JM Eagle 86kSF) and numerous smaller spaces(<10kSF).[38]∗∗Rates(/SF/YR):* LoopNet’s stated average is ~$15/SF/YR.39 Specific examples range widely: $6.60 (S Tacoma Way 38), $9.00 (A St, Court E Plaza 38), $9.36 (Cubework Steele 38), $12.00-$13.00 (Gasparetti Bldg, Warner St 38), $15.00-$17.14 (Tacoma Way, Milwaukee Way 38), and $19-$23+ for smaller flex/retail-like spaces.38
  • Types: Warehouse, distribution, flex, manufacturing. Includes older stock and modern Class A facilities. Listings encompass Tacoma, Lakewood, Federal Way, Spanaway, and Frederickson.
  • Estimated Average Lease Rate Range: $10.00 – $16.00 /SF/YR NNN. Newer Class A distribution facilities likely command $12-$16, while older or larger blocks might be available for $10-$13. Small flex spaces typically lease at higher rates.
  1. Olympia (including Tumwater/Lacey)
  • Market Conditions (Q4 2024):
  • Vacancy: Thurston County reported relatively low vacancy at 5.4% (KM Q4) 7 and 5.7% (Lee & Assoc. Q3).24
  • Absorption: Stable demand, with slightly positive absorption of 34,142 SF reported by KM for Q4 7, following slightly negative absorption in Q3.24
  • Reported Rents: Kidder Mathews reported a stable blended rate of $0.90/SF/Month ($10.80/SF/YR).7 Lee & Associates cited 11.20/SF/YRforThurstonCountyinQ3.[24]∗∗Trends:∗Marketappearsstablewithlimitednewconstructionreported(58kSF)[7]andactivityfocusedonsmallertenants.∗∗∗CurrentLeaseListingsOverview(LoopNet):∗∗∗∗Listings:∗Approximately7to17+warehouse/industriallistingsidentifiedinThurstonCounty.[40,41]∗∗Sizes:∗Examplesrangefrom3,000SF(Lacey)to20,000SF(Tumwater)andanew28,750SFbuildinginTumwater.[40]LoopNet′sstatedaveragesizeof 55kSFsuggestslargerspacesmaybeavailablebutnotprominentininitialsearchresults.[42]∗∗Rates(/SF/YR):* LoopNet’s stated average is ~$13/SF/YR.42 Examples include $9.00 (Tumwater 40), $12.60 (New Tumwater build 40), $13.20 (Lacey 40), and $16.00 (Olympia Flex 40).
  • Types: Warehouse, distribution, flex. Includes existing buildings and some new construction. Listings cover Olympia, Tumwater, and Lacey.
  • Estimated Average Lease Rate Range: $10.00 – $14.00 /SF/YR NNN. New construction likely commands rates at the higher end of this range, while flex spaces may exceed it.
  1. Vancouver
  • Market Conditions (Q4 2024 – Clark County):
  • Vacancy: Relatively stable vacancy reported at 6.5% (KM Q4 direct) 8 and 5.7% (Lee & Assoc. Q3).24
  • Absorption: Consistent positive demand, with +126,627 SF absorbed in Q4 (KM) 8 following +509k SF in Q3 (Lee & Assoc.).24
  • Reported Rents: Kidder Mathews reported an average total rent of $0.96/SF/Month ($11.52/SF/YR).8 Lee & Associates cited 13.81/SF/YRinQ3.[24]∗∗Trends:∗ConsideredpartofthePortlandmetroarea,showingmorestabilitythancorePugetSoundmarkets.Limitednewconstructionmentioned.[24]∗∗∗CurrentLeaseListingsOverview(LoopNet):∗∗∗∗Listings:∗33to139+warehouse/industriallistingsidentifiedforVancouver(countvariesbysearchscope).[43,44]∗∗Sizes:∗Extensiverange,fromverysmallcontractorbays(<1kSF)tolargedistributioncenters(30k−70kSF).[43]∗∗Rates(/SF/YR):* LoopNet’s stated average is ~$14/SF/YR.44 Specific examples include $10.20 – $10.92 for several larger/older spaces 43, $13.80 – $15.00 for mid-range options 43, $16.00 – $18.00 for flex or well-located buildings 43, and significantly higher rates ($35-$36) for very small contractor units.43
  • Types: Warehouse, distribution, flex, contractor bays, food production. Mix of building ages and quality.
  • Estimated Average Lease Rate Range: *$11.00 – 16.00/SF/YRNNN∗∗.Standardwarehouse/distributionlikelyfallswithinthisrange.Smallbayscommandsubstantialpremiums.ProximitytoPortlandandhighwayaccessinfluencesrates.∗∗E.Spokane(includingSpokaneValley,AirwayHeights)∗∗∗∗∗MarketConditions(2023/Q42024):∗∗∗∗Vacancy:∗SpecificQ42024ratenotfoundinreports.Significant2023deliveries(1.9MSFspec)likelyincreasedvacancy,especiallyintheWestPlains.[9,10]∗∗Absorption:∗Positiveabsorption( 515kSF)reportedfor2023,consideredaboveaverageforthemarket.[10]∗∗ReportedRents:∗NAIBlacknotedflatClassAratesin2023butsignificant(>30∗∗Trends:∗Amajorgrowtharea,particularlytheWestPlains,attractinginvestment.[9,10]Marketisabsorbinglargenewdevelopments.[9,10]∗∗∗CurrentLeaseListingsOverview(LoopNet):∗∗∗∗Listings:∗36to51+warehouse/industriallistingsidentifiedintheSpokanearea.[45,46]∗∗Sizes:∗Widerange,fromsmallflex( 1.4kSF)tomid−size(10k−36kSF)andlargenewbuilds(McFarlaneIII202kSF).[9,45]Smallbayoptionsnoted(ThorpeRdFlexPark).[9]∗∗Rates(/SF/YR): LoopNet averages stated as ~$11/SF/YR (Spokane) 47 and ~$9/SF/YR (Spokane Valley).48 Examples show considerable spread: $6.00 – $7.80 for older/basic spaces 45, $9.00 – $10.90 for mid-range options 45, $11.00 – $12.12 for newer/well-located spaces 45, and up to $15.13 for new construction.45 Land lease at $1.50.45
  • Types: Warehouse, distribution, flex, manufacturing, land lease, build-to-suit. Includes older stock and new Class A construction. Listings cover Spokane, Spokane Valley, Airway Heights, Greenacres.
  • Estimated Average Lease Rate Range: $8.00 – $13.00 /SF/YR NNN. New Class A distribution likely $10-$13+, while older properties range $8-10.Smallbayspaceslikelycommandhigherratesbasedonreportedmarkettightness.∗∗F.Yakima∗∗∗∗∗MarketConditions:∗∗Nospecificindustrialmarketreportswerefoundintheprovidedmaterials.[49,50,51]Localeconomicconditionsprimarilydrivethismarket.∗∗∗CurrentLeaseListingsOverview(LoopNet):∗∗∗∗Listings:∗Approximately9to12+warehouse/industriallistingsidentifiedforYakimaCounty.[52,53]∗∗Sizes:∗Examplesrangefrom 4.3kSFto9.5kSF,withlargeroptionslike22kSFinUnionGapandupto52.6kSFattheFranzBakerybuilding.[52]∗∗Rates(/SF/YR):* LoopNet’s stated average is ~$10/SF/YR.54 Examples include $7.20 – $7.80 for older spaces 52, $9.00 for several mid-size warehouses 52, $10.20 (Keys Rd 52), and higher rates ($13.00-$14.40) for retail/warehouse mix or specialized production spaces.52
  • Types: Warehouse, distribution, flex, brewery/winery production, retail/warehouse combinations. Primarily existing buildings of varying ages. Listings cover Yakima and Union Gap.
  • Estimated Average Lease Rate Range: *$8.00 – 11.00/SF/YRNNN∗∗.BasedsolelyonLoopNetdata.Specializeduseproperties(foodproduction,retailcomponent)mayleaseathigherrates.∗∗G.Shelton∗∗∗∗∗MarketConditions:∗∗Nospecificindustrialmarketreportsfound.[56,57,58]Themarketappearssmallwithlimitedactivityorinventory.∗∗∗CurrentLeaseListingsOverview(LoopNet):∗∗∗∗Listings:∗Extremelylimited;only1consistentwarehouse/industriallistingfoundacrosssearches.[11,12,56,57]LoopNetnotesonly2totalcommerciallistingsforleaseinShelton.[58]∗∗Sizes:∗Thesinglewarehouselistingis18,660SF.[11]LoopNetconfirmstheaveragesizeavailableis18,660SF.[12]∗∗Rates(/SF/YR): LoopNet’s stated average is ~$8/SF/YR.12 The single listing asks $7.72/SF/YR.11
  • Types: Industrial/Warehouse. The listed property is a 1996 building.11
  • Estimated Average Lease Rate Range: $7.50 – $8.50 /SF/YR NNN. This estimate is based almost entirely on the single LoopNet listing and average, suggesting either a very tight market or low transaction volume.
  1. Bellingham
  • Market Conditions (Q4 2024 – Skagit/Whatcom Counties):
  • Vacancy: Kidder Mathews reported very low vacancy of 1.45% for Skagit/Whatcom Counties.7
  • Absorption: Negative absorption (-53,016 SF) reported for 2024.7
  • Reported Rents: Kidder Mathews cited an average blended rent of $1.02/SF/Month (12.24/SF/YR).[7]∗∗Trends:∗Describedasagrowingindustrialmarket,generallyfeaturingsmallerbuildingsandtenantsuites.[7]∗∗∗CurrentLeaseListingsOverview(LoopNet):∗∗∗∗Listings:∗Approximately5to10+warehouse/industriallistingsidentifiedinBellingham.[59,60]∗∗Sizes:∗Examplesrangefrom 1.4kSFto 8.9kSFand 15.8kSF.[59]LoopNet′sstatedaveragesizeissmallerat 3,855SF[60],aligningwiththedescriptionofsmallersuites.∗∗Rates(/SF/YR):* LoopNet’s stated average is ~$11/SF/YR.60 Examples include $10.20-$10.80 (Mercer Ave 59), $12.00 (Queen St 59), and $15.24 (Irongate, newer build 59). Land lease at $1.00.59
  • Types: Warehouse, distribution, industrial, land lease. Includes newer construction (2016, 2020, 2022).59
  • Estimated Average Lease Rate Range: **$10.00 – $14.00 /SF/YR NNN**. Newer spaces likely command rates at the higher end. This range is consistent with the blended rate reported by Kidder Mathews. The asking rates found on LoopNet generally provide a reasonable, albeit potentially optimistic, proxy for market conditions, particularly in secondary markets lacking extensive report coverage. Comparing LoopNet averages and examples to reported averages (where available) shows general alignment, though LoopNet figures are sometimes slightly higher. This consistency supports using LoopNet as a directional indicator of current asking rents. Across all cities, property type and size significantly influence asking rates. Flex spaces, small bays (especially <5,000 SF), and properties with substantial office build-outs consistently command premiums over standard distribution warehouses.10 Similarly, new Class A construction is priced higher than older, less functional buildings.45 This pattern underscores that while city-wide averages provide context, specific requirements heavily dictate actual lease costs. Users must carefully evaluate the specific type, size, age, and features of a property, as relying solely on broad market averages can be misleading when budgeting or negotiating. ## IV. Comparative Market Analysis Comparing the industrial/warehouse markets across the eight target cities reveals significant variations in cost, vacancy pressures, and overall market dynamics as of late 2024 / early 2025. **Washington State Industrial/Warehouse Market Comparison (Q4 2024 / Early 2025)** | City | Estimated Avg. Asking Lease Rate Range ($/SF/YR NNN*) | Rate Basis (Source Type) | Q4 2024 Vacancy Rate (%) | Key Market Notes/Trends | | :———– | :—————————————————– | :———————– | :———————– | :————————————————————————————– | | Seattle | $14.00 – $19.00 | Reported Avg. / LoopNet Est. | 7.0% – 9.4% | Cooling market, high vacancy/sublease, slow large-space leasing, premium location | | Tacoma | $10.00 – $16.00 | Reported Avg. / LoopNet Est. | 8.4% – 9.8% | Rising vacancy, negative absorption, significant construction pipeline (Pierce Co.) | | Olympia | $10.00 – $14.00 | Reported Avg. / LoopNet Est. | 5.4% (Thurston Co.) | Stable market, positive absorption, limited new construction, lower vacancy | | Vancouver | $11.00 – $16.00 | Reported Avg. / LoopNet Est. | 6.5% (Clark Co. Direct) | Stable market (Portland Metro), positive absorption, varied rates by size/type | | Spokane | $8.00 – $13.00 | LoopNet Est. / 2023 Report | Not Reported (Likely High) | Growth hub (West Plains), absorbing new supply, strong small bay rates, varied pricing | | Yakima | $8.00 – $11.00 | LoopNet Est. | Not Reported | Limited data, moderate rates based on listings, specialized spaces higher | | Shelton | $7.50 – $8.50 | LoopNet Est. | Not Reported (Likely Low) | Limited data, very few listings suggest tight supply or low turnover, lowest rates | | Bellingham | $10.00 – $14.00 | Reported Avg. / LoopNet Est. | 1.45% (Skagit/Whatcom Co.) | Low vacancy (county-wide), growing market, smaller suites common, moderate rates |

*Note: NNN (Triple Net) lease structure is assumed for estimated ranges based on typical industrial/warehouse leases and LoopNet conventions, but individual listings may vary. Vacancy rates are for Q4 2024 where available; some are county-level or older. Rate Basis indicates primary source for range: “Reported Avg.” relies significantly on brokerage reports; “LoopNet Est.” relies primarily on LoopNet listings and averages due to report scarcity.

Discussion of Findings

  • Cost Tiers: A distinct cost hierarchy exists across the state. Seattle stands out as the most expensive market, driven by its dense population, port proximity, and high land values. Tacoma, Vancouver, Olympia, and Bellingham form a secondary tier, offering lower rates than Seattle but still reflecting proximity to major economic centers or specific local demand drivers. Eastern Washington markets (Spokane, Yakima) and the more isolated Shelton generally represent the most affordable options for industrial space, reflecting lower land and development costs and distance from the primary Puget Sound economic core. This geographical cost gradient aligns with the broader economic geography of Washington State.
  • Vacancy Pressure: Market conditions are far from uniform. The major Puget Sound markets of Seattle and Tacoma clearly exhibit higher vacancy rates (generally 7-10%) resulting from the significant volume of new construction delivered in 2023/2024 coinciding with tenant rightsizing.5 In contrast, surrounding counties reported lower vacancy: Thurston County (Olympia) at 5.4% 7, Clark County (Vancouver) at 6.5% 8, and Skagit/Whatcom Counties (Bellingham) at a very low 1.45%.7 While specific Q4 vacancy for Spokane was unavailable, the large volume of recent deliveries suggests vacancy likely rose there as well.9 The extremely limited listings in Shelton might indicate very low vacancy or simply low market turnover.11
  • Growth & Development: Development activity also varies. Pierce County (Tacoma area) reported a substantial 5.4 MSF under construction in Q4 2024 7, indicating continued expansion despite rising vacancy. Spokane’s West Plains remains a significant development hub, absorbing large projects delivered in 2023 and with more planned.9 Conversely, Thurston County (Olympia) and Shelton reported very limited new construction 7, suggesting slower growth or tighter supply constraints.
  • Regional Groupings:
  • Puget Sound Core (Seattle/Tacoma): Characterized by market adjustment, higher vacancy, negative near-term absorption, but still commanding relatively high rents due to strategic importance.
  • Puget Sound Periphery / SW WA (Olympia/Vancouver/Bellingham): Appear more stable, with lower vacancy rates and, in some cases (Clark County), positive absorption, suggesting different market cycle timing or less exposure to the factors driving the core’s adjustment. Rates are moderate.
  • Eastern WA / Other (Spokane/Yakima/Shelton): Offer the lowest cost structures. Spokane is a dynamic market absorbing recent growth. Yakima and Shelton show limited data but appear less volatile, driven by local economies.

The clear cost gradient running from the core Puget Sound outwards highlights the trade-offs between location/access and rental expense. Businesses prioritizing proximity to the ports, Seattle’s population base, or major logistics networks must contend with the highest costs, although the current market softening provides some negotiating leverage. Those prioritizing cost savings can find significantly more affordable options in Eastern or Southwest Washington, albeit with potential trade-offs in transportation time or access to specific labor pools.

Furthermore, the non-uniform market health across the state underscores that local factors remain critical. While Puget Sound navigates adjustments after its boom, markets like Vancouver and Spokane exhibit different dynamics – relative stability and positive absorption in Vancouver’s case 8, and ongoing absorption of a major development wave in Spokane’s.9 This divergence indicates that statewide trends provide context, but local supply/demand balance, economic drivers, and development cycles dictate conditions within each specific city. Strategic location decisions must therefore weigh both the statewide cost hierarchy and the specific health and trajectory of the local submarket.

V. Key Factors Influencing Lease Rates

Lease rates for industrial and warehouse properties in Washington State are influenced by a complex interplay of market-wide conditions and property-specific attributes. Understanding these factors is crucial for both tenants and landlords navigating the current environment.

  • Vacancy Rates & Market Balance: The availability of space is a primary determinant of rental rates. The elevated vacancy rates observed in the core Puget Sound markets (Seattle, Tacoma) throughout 2024, reaching levels between 7% and 10% 5, directly contributed to the deceleration and, in some cases, decline in rent growth.1 Landlords face more competition, limiting their pricing power. Conversely, markets with lower reported vacancy, such as Thurston County (5.4%) 7, Clark County (6.5%) 8, and Skagit/Whatcom Counties (1.45%) 7, generally supported more stable or potentially increasing rents. The extremely tight supply suggested by limited listings in Shelton 12 likely supports its relative rate level despite being a smaller market. The expectation that overall vacancy may peak in the first half of 2025 suggests potential stabilization ahead.1
  • New Construction & Supply Pipeline: The unprecedented volume of new industrial construction completed nationally and regionally in 2023 and early 2024 significantly increased supply, outpacing demand in many areas and contributing directly to rising vacancy rates.1 This influx put downward pressure on rents, especially for older or less functional existing buildings competing with new, modern facilities. However, the sharp slowdown in construction starts observed in late 2024, driven by higher interest rates and economic caution, is constricting the future supply pipeline.4 This reduction in future deliveries could lead to market tightening and renewed upward pressure on rents in late 2025 or 2026 if demand remains steady.13 Newly delivered, high-quality speculative buildings often command premium asking rents.1
  • Location & Accessibility: Proximity to key infrastructure and economic centers remains a critical factor. Locations near the Ports of Seattle and Tacoma 5, major highways like I-5 and I-90, airports (SeaTac, Spokane International), and large population centers command premium rents due to efficiency gains for logistics and distribution. This largely explains the higher rates observed in Seattle Close-In compared to more peripheral submarkets or cities further afield. Last-mile delivery requirements also favor locations closer to end consumers.
  • Property Characteristics: Specific building features heavily influence asking rates.
  • Size: Smaller bay spaces (often under 10,000 SF) frequently lease at a higher per-square-foot rate due to strong demand from smaller businesses and limited supply, a trend noted nationally and in markets like Spokane.1 LoopNet examples confirm this premium across multiple cities.38 Larger distribution spaces often have lower per-square-foot rates but higher overall costs.
  • Quality & Functionality: Modern buildings with high clear heights (e.g., 30’+) 23, ample dock-high loading doors, efficient truck courts, ESFR sprinkler systems, and good condition command higher rents than older buildings with lower ceilings, limited loading, or functional obsolescence.35
  • Other Features: The amount of finished office space significantly impacts the overall blended rate. Yard space for outdoor storage or trailer parking can also add value and cost.35
  • Tenant Demand & Industry Mix: The strength and composition of tenant demand influence overall market velocity and pricing. Continued demand from e-commerce, logistics providers (3PLs), aerospace (Boeing), manufacturing, and food/beverage distributors supports the market.2 However, recent rightsizing and consolidation, particularly among 3PLs adjusting to moderated consumer spending, created negative absorption and increased supply in some areas.1
  • Economic Conditions: Broader economic factors set the overall market tone. Higher interest rates increase the cost of capital for development and investment, impacting supply and transaction velocity.10 Inflation affects operating expenses (passed through in NNN leases) and overall business costs.10 Consumer spending levels directly impact demand for goods movement and storage.4

While macroeconomic factors like interest rates and national economic growth establish the broad market environment, local supply and demand dynamics (vacancy, new construction) and property-specific attributes (size, quality, location) are the most significant drivers of individual lease rates. The current market, particularly in Puget Sound, reflects an environment where elevated supply in certain segments (larger Class A, sublease space) and landlord focus on maintaining occupancy 15 create opportunities for tenants. This often translates into increased concessions, such as free rent periods or higher tenant improvement allowances, which may not be fully reflected in quoted asking rates but significantly impact the total lease cost. Therefore, asking rates represent a starting point, and the final negotiated deal terms depend heavily on these underlying factors and the specific property and submarket conditions.

VI. Concluding Remarks and Market Outlook

The Washington State industrial and warehouse market concluded 2024 in a state of transition, moving from the exceptional growth phase of the pandemic years toward a more normalized environment. Lease rates, while still high in core areas compared to historical levels, saw growth decelerate significantly, with some markets experiencing modest declines. Vacancy rates rose across most regions, driven primarily by the delivery of substantial new supply outpacing moderated tenant demand.

Key findings include a distinct cost hierarchy, with Seattle commanding the highest rates, followed by other Puget Sound and Southwest Washington markets, and Eastern Washington offering more affordable options. Market conditions vary significantly, with Puget Sound experiencing adjustments (higher vacancy, negative absorption), while areas like Vancouver (Clark County) showed greater stability, and Spokane continued to absorb recent large-scale developments. Factors such as slowing construction starts, tenant rightsizing (especially 3PLs), location relative to infrastructure, and property-specific features (size, quality, age) are critical drivers of current and future market performance.

Looking ahead to the remainder of 2025, the Washington industrial market is expected to continue stabilizing. Vacancy rates may peak in the first half of the year as the impact of reduced construction starts begins to balance the market.1 Rent growth is likely to remain modest compared to the rapid increases of 2021-2023, potentially aligning more closely with historical averages of 2-5% annually in many segments.2 However, if construction activity remains muted and demand holds firm or recovers, a gradual tightening could emerge later in 2025 or into 2026, potentially leading to renewed upward pressure on rents.13 Potential risks include shifts in interest rate policy, broader economic slowdowns, or significant changes in trade policy.2

Strategic Considerations:

  • For Tenants: The current market, particularly in Puget Sound and for larger space requirements, presents a window of opportunity in 2025. Elevated vacancy and landlord focus on occupancy create leverage for negotiating favorable terms, including concessions like free rent and tenant improvement allowances. Businesses prioritizing cost savings should explore options in secondary markets like Spokane, Yakima, or potentially Vancouver, where rates are generally lower. Thoroughly evaluating specific building functionality relative to cost remains crucial.
  • For Landlords & Investors: In competitive markets like Seattle and Tacoma, focus should be on tenant retention and maintaining high occupancy, potentially through proactive engagement and strategic concessions. Investing in property upgrades to maintain quality and appeal can differentiate assets. Development of new speculative projects carries near-term risk due to higher vacancy and financing costs, although build-to-suit opportunities or projects targeting underserved niches (e.g., modern small bay) may still be viable. Monitoring local absorption trends, sublease availability, and the forward construction pipeline is critical for informing investment and leasing strategies.

Despite the near-term adjustments, the long-term fundamentals for the Washington industrial market appear resilient. Underlying demand drivers, including the ongoing growth of e-commerce, the need for efficient logistics networks, and regional population growth, remain intact.5 The current phase represents a necessary recalibration rather than a fundamental decline. Navigating this transition successfully requires stakeholders to possess a nuanced understanding of both the short-term market conditions offering tactical opportunities and the enduring long-term trends supporting the sector’s value. Strategic timing and location-specific insights will be paramount for maximizing returns and minimizing costs in the coming year.

Works cited

  1. U.S. Industrial MarketBeat Report – Cushman & Wakefield, accessed April 9, 2025, https://www.cushmanwakefield.com/en/united-states/insights/us-marketbeats/us-industrial-marketbeat
  2. Colliers: warehouse construction rates return to pre-pandemic levels, accessed April 9, 2025, https://www.thescxchange.com/move/store/colliers-warehouse-construction-rates-return-to-pre-pandemic-levels
  3. United States Industrial Market Dynamics | Q4 2024 – JLL, accessed April 9, 2025, https://www.jll.com/en-us/insights/market-dynamics/industrial-market-statistics-trends
  4. MARKETBEAT – US NATIONAL – Industrial Q4 2023 – nxedge.io, accessed April 9, 2025, https://eadn-wc01-8947530.nxedge.io/wp-content/uploads/2024/02/us_industrial_marketbeat_q4_2023.pdf
  5. Puget Sound Industrial Figures Q4 2024 | CBRE, accessed April 9, 2025, https://www.cbre.com/insights/figures/puget-sound-industrial-figures-q4-2024
  6. Seattle-Bellevue MarketBeats | US | Cushman & Wakefield, accessed April 9, 2025, https://www.cushmanwakefield.com/en/united-states/insights/us-marketbeats/seattle-bellevue-marketbeats
  7. kidder.com, accessed April 9, 2025, https://kidder.com/wp-content/uploads/market_report/industrial-market-research-seattle-2024-4q.pdf
  8. kidder.com, accessed April 9, 2025, https://kidder.com/wp-content/uploads/market_report/industrial-market-research-portland-2024-4q.pdf
  9. West Plains Industrial Development Progress – Inland Northwest Business Watch, accessed April 9, 2025, http://www.inlandnwbusiness.com/2024/11/west-plains-industrial-development.html
  10. www.naiblack.com, accessed April 9, 2025, https://www.naiblack.com/wp-content/uploads/sites/55/2024-Market-Report.pdf
  11. Shelton Warehouses For Rent & Lease | LoopNet, accessed April 9, 2025, https://www.loopnet.com/search/listings/warehouses/shelton-wa/for-lease/
  12. Shelton, WA Industrial Space for Lease – LoopNet, accessed April 9, 2025, https://www.loopnet.com/search/industrial-space/shelton-wa/for-lease/
  13. Q4 2024 MARKET REPORTS | Lee & Associates, accessed April 9, 2025, https://www.lee-associates.com/wp-content/uploads/2025/01/2024.Q4-North-America-Market-Report.pdf
  14. Seattle/Puget Sound Q4 2024 Industrial Market Report – Savills, accessed April 9, 2025, https://www.savills.com/research_articles/255800/371714-0
  15. Industrial Vacancy Rate Hits 10-Year High Despite Robust Leasing | CBRE, accessed April 9, 2025, https://www.cbre.com/insights/figures/q4-2024-us-industrial-and-logistics-figures
  16. INDUSTRIAL – Kidder Mathews, accessed April 9, 2025, https://kidder.com/wp-content/uploads/market_report/industrial-market-research-seattle-2024-3q.pdf
  17. Industrial U.S. Industrial Market to Recalibrate, Expand in 2024 – Heritage Group Capital, accessed April 9, 2025, https://heritagegroupcapital.com/wp-content/uploads/2024/04/Colliers_National_Industrial_Outlook_4Q23.pdf
  18. United States Industrial Market Dynamics | Q4 2024 – JLL, accessed April 9, 2025, https://www.us.jll.com/en/trends-and-insights/research/industrial-market-statistics-trends
  19. Seattle-Puget Sound Industrial Market Dynamics | Q4 2024 | JLL Research, accessed April 9, 2025, https://www.jll.com/en-us/insights/market-dynamics/seattle-bellevue-industrial
  20. Seattle-Puget Sound Industrial Market Dynamics | Q4 2024 | JLL …, accessed April 9, 2025, https://www.us.jll.com/en/trends-and-insights/research/industrial-market-statistics-trends/seattle-bellevue
  21. nmrk.imgix.net, accessed April 9, 2025, https://nmrk.imgix.net/uploads/fields/pdf-market-reports/4Q24-Seattle-Industrial-Market-Report.pdf
  22. Market Conditions – NAI Puget Sound Properties, accessed April 9, 2025, https://www.nai-psp.com/market-conditions
  23. INDUSTRIAL – Kidder Mathews, accessed April 9, 2025, https://kidder.com/wp-content/uploads/market_report/industrial-market-research-seattle-2024-1q.pdf
  24. Q3 2024 INDUSTRIAL – Seattle – Lee & Associates, accessed April 9, 2025, https://www.lee-associates.com/northwest/wp-content/uploads/sites/74/2024/11/2024.Q3-Industrial-Market-Report.pdf
  25. Insights & Research – CBRE, accessed April 9, 2025, https://www.cbre.com/insights
  26. News – TOK Commercial Real Estate, accessed April 9, 2025, https://www.tokcommercial.com/news
  27. Q4 2024 Research on Eastern Washington Apartment Market | Kidder Mathews, accessed April 9, 2025, https://kidder.com/trend-articles/q4-2024-research-on-eastern-washington-apartment-market/
  28. Commercial Real Estate Metro Market Reports – National Association of REALTORS®, accessed April 9, 2025, https://www.nar.realtor/research-and-statistics/research-reports/commercial-real-estate-metro-market-reports
  29. Logistics & Industrial Capital Markets 2024 Outlook Report, accessed April 9, 2025, https://cushwake.cld.bz/logistics-and-industrial-2024-outlook-report
  30. 2025 Commercial Real Estate Trends | JPMorganChase, accessed April 9, 2025, https://www.jpmorgan.com/insights/real-estate/commercial-real-estate/commercial-real-estate-trends
  31. U.S. Office MarketBeat Reports – Cushman & Wakefield, accessed April 9, 2025, https://www.cushmanwakefield.com/en/united-states/insights/us-marketbeats/us-office-marketbeat-reports
  32. Q4 2024 US industrial market report – Avison Young, accessed April 9, 2025, https://www.avisonyoung.us/us-industrial-market-overview
  33. Q2 2024 | Mpls/St Paul | Industrial – MNCAR, accessed April 9, 2025, https://www.mncar.org/wp-content/uploads/2024/07/Q2-24-Mpls-St-Paul-Industrial-Market-Report.pdf
  34. Commercial Market Review Q1 2025 – WFG National Title Insurance Company, accessed April 9, 2025, https://wfgtitle.com/commercial-market-review-q1-2025/
  35. INDUSTRIAL – Kidder Mathews, accessed April 9, 2025, https://kidder.com/wp-content/uploads/market_report/industrial-market-research-seattle-2023-4q.pdf
  36. Seattle Warehouses For Rent & Lease | LoopNet, accessed April 9, 2025, https://www.loopnet.com/search/listings/warehouses/seattle-wa/for-lease/
  37. Seattle (98178) – Warehouses For Rent & Lease – LoopNet, accessed April 9, 2025, https://www.loopnet.com/search/listings/warehouses/seattle-wa-98178/for-lease/6/
  38. Tacoma Warehouses For Rent & Lease | LoopNet, accessed April 9, 2025, https://www.loopnet.com/search/listings/warehouses/tacoma-wa/for-lease/
  39. Tacoma, WA Industrial Space for Lease – LoopNet, accessed April 9, 2025, https://www.loopnet.com/search/industrial-space/tacoma-wa/for-lease/
  40. Olympia Warehouses For Rent & Lease | LoopNet, accessed April 9, 2025, https://www.loopnet.com/search/listings/warehouses/olympia-wa/for-lease/
  41. Industrial Space for Lease in Thurston County, WA – LoopNet, accessed April 9, 2025, https://www.loopnet.com/search/industrial-space/thurston-county-wa/for-lease/
  42. Olympia, WA Industrial Space for Lease – LoopNet, accessed April 9, 2025, https://www.loopnet.com/search/industrial-space/olympia-wa/for-lease/
  43. Vancouver Warehouses For Rent & Lease | LoopNet, accessed April 9, 2025, https://www.loopnet.com/search/listings/warehouses/vancouver-wa/for-lease/
  44. Vancouver, WA Industrial Space for Lease – LoopNet, accessed April 9, 2025, https://www.loopnet.com/search/industrial-space/vancouver-wa/for-lease/
  45. Spokane Warehouses For Rent & Lease | LoopNet, accessed April 9, 2025, https://www.loopnet.com/search/listings/warehouses/spokane-wa/for-lease/
  46. Industrial Space for Lease in Spokane County, WA – LoopNet, accessed April 9, 2025, https://www.loopnet.com/search/industrial-space/spokane-county-wa/for-lease/
  47. Spokane, WA Industrial Space for Lease – LoopNet, accessed April 9, 2025, https://www.loopnet.com/search/industrial-space/spokane-wa/for-lease/
  48. Spokane Valley Industrial Space for Lease – LoopNet, accessed April 9, 2025, https://www.loopnet.com/search/industrial-space/spokane-valley-wa/for-lease/
  49. 2024 4th Quarter Treasury Report – City of Yakima, accessed April 9, 2025, https://www.yakimawa.gov/services/finance/files/2024_Q4_Treasury_Report.pdf
  50. Yakima, Washington Housing Market Report March 2025 – Rocket Homes, accessed April 9, 2025, https://rocket.com/homes/market-reports/wa/yakima
  51. 2023 4th Quarter Treasury Report – City of Yakima, accessed April 9, 2025, https://www.yakimawa.gov/services/finance/files/2023-Q4-Treasury-Report.pdf
  52. Yakima Warehouses For Rent & Lease | LoopNet, accessed April 9, 2025, https://www.loopnet.com/search/listings/warehouses/yakima-wa/for-lease/
  53. Industrial Space for Lease in Yakima County, WA | LoopNet, accessed April 9, 2025, https://www.loopnet.com/search/industrial-space/yakima-county-wa/for-lease/
  54. Yakima, WA Industrial Space for Lease – LoopNet, accessed April 9, 2025, https://www.loopnet.com/search/industrial-space/yakima-wa/for-lease/
  55. 2001 Ahtanum Rd, Yakima, WA 98903 – Industrial for Lease | LoopNet, accessed April 9, 2025, https://www.loopnet.com/Listing/2001-Ahtanum-Rd-Yakima-WA/35180875/
  56. Shelton, WA Land for Lease – LoopNet, accessed April 9, 2025, https://www.loopnet.com/search/land/shelton-wa/for-lease/
  57. Shelton, WA Office Space for Lease – LoopNet, accessed April 9, 2025, https://www.loopnet.com/search/office-space/shelton-wa/for-lease/
  58. Shelton, WA Commercial Real Estate for Lease – LoopNet, accessed April 9, 2025, https://www.loopnet.com/search/commercial-real-estate/shelton-wa/for-lease/
  59. Bellingham Warehouses For Rent & Lease | LoopNet, accessed April 9, 2025, https://www.loopnet.com/search/listings/warehouses/bellingham-wa/for-lease/
  60. Bellingham, WA Industrial Space for Lease – LoopNet, accessed April 9, 2025, https://www.loopnet.com/search/industrial-space/bellingham-wa/for-lease/