The rush for industrial land in the Puget Sound region is boosting property prices to previously unfathomable levels. Land that sat vacant for decades is selling for as much as $200 million in a sudden scramble to acquire what little is left within reasonable proximity to the region’s rapidly growing ports.
Justin Carlucci, Bridge Industrial’s Northwest region partner, isn’t surprised. His firm recently purchased a $150 million parcel near the Tacoma Mall where it plans to construct Bridge Point Tacoma 2 MM at 5802 S. Burlington Way.
“Five or six years ago, I thought the market couldn’t have gotten any more crazy, and the cap rates couldn’t have compressed any lower,” Carlucci said. “But from the things I’m reading, they are going to continue at this pace for a while.”