Terreno Buys Seattle-Area Facility

Terreno Realty Corp. has paid $27.1 million for a 121,000-square-foot warehouse in Tukwila, Wash., within Greater Seattle. A private individual sold the property, according to Yardi Matrix.

One company fully leases the facility, with the agreement set to expire in February 2027. Upon termination, Terreno plans to renovate the property and market it for one to four tenants. The cap rate prior to capital improvements and releasing clocked in at 3.9 percent.

Located on more than 7 acres at 510 Andover Park W., the warehouse is approximately 13 miles southeast of downtown Seattle. The interchange between interstates 405 and 5 is within 2 miles, while the Seattle-Tacoma and King County international airports operate less than 6 miles away.

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The 1976-built property features 19 dock doors, two ramp entrances and three grade-level loading positions, as well as 122 car parking spaces. Additionally, it also has 20,000 square feet of showroom space.

Terreno is among the largest commercial real estate companies doing business in Greater Seattle. In fact, its previous acquisition in the market holds the record for the biggest industrial deal in King County to date this year, Yardi Matrix shows. That purchase closed in August, when Terreno paid $232.6 million for a 720,000-square-foot collection sold by Blackstone.

Seattle’s industrial sales hold a steady course

Seattle’s industrial investment volume clocked in at more than $1 billion during the first 11 months of 2025, on par with the figures recorded during the same period of last year, the data provider shows. These numbers align with pre-pandemic values, yet are significantly below 2021 and 2022’s total activity, which peaked at nearly $2 billion each.

However, investors traded nearly one-third more industrial assets this year through November than during the same time frame of 2024. More than 6.3 million square feet of industrial space changed hands for an average price per square foot of $221.4. Terreno’s latest acquisition lined up almost perfectly with the market average, trading at $223.9 per square foot.