Industrial development firm Panattoni Development Co. is set to increase its footprint in greater Seattle, with plans to break ground on a distribution center south of Tacoma, Washington.
Panattoni, based in Newport Beach, California, plans to start construction in August of Canyon 160, a 162,480-square-foot building near the unincorporated area of Frederickson, according to the developer’s website.
The project is to be built on 21 acres at Brookdale and Canyon roads on speculation without a signed tenant and is slated to have 32-foot-high ceilings and be available in May 2024, according to Panattoni.
Panattoni is breaking ground despite a cooling of greater Seattle's industrial market going into the second half of 2023. The region's industrial vacancy rate is about 5.5%, up from a five-year low of 3% a year ago, according to a CoStar Market Analytics report.
The vast majority of industrial space under construction across Seattle is being built on speculation, according to the report. Much of the construction is in and around Tacoma and other parts of Pierce County, where the Port of Tacoma is a major hub of activity, CoStar data shows.
Canyon 160 joins several other Panattoni projects in the greater Seattle area, including the four-building, 2.3-million-square-foot industrial development called FRED310 on a former Boeing Co. property in Frederickson.
A joint venture between the developer and a fund advised by Dallas-based Crow Holdings Capital this year signed a lease with national tool and equipment seller Harbor Freight for 782,875 square feet.