Newmark Arranges Full-Building Lease at Prologis Park SeaTac 3, Bringing Des Moines Creek Holdings to 100% Occupancy

Newmark announced Oct. 22 that it has arranged a full-building lease at Prologis Park SeaTac 3, a 265,922-square-foot Class A industrial facility in Des Moines, Washington. The lease brings Prologis' holdings in the Des Moines Creek industrial corridor to 100% occupancy.

Newmark Executive Vice Chairman Thad Mallory, Vice Chairman Taylor Hoff and Managing Director Cam Warren represented property owner Prologis in the transaction. The tenant is Blue Origin, which plans research, development and light-production uses tied to commercial satellites.

Prologis Park SeaTac 3 Lease Completes Des Moines Creek Lease-Up

The single-tenant building is located at 21202 24th Avenue South in Des Moines, immediately south of Seattle-Tacoma International Airport. The lease completes the lease-up of Prologis' industrial portfolio in the Des Moines Creek corridor, which Newmark described as one of the Puget Sound region's most sought-after industrial submarkets.

The property is also associated with the Des Moines Business Park and was formerly used as a Bartell Drugs distribution center. The building became vacant after the prior Bartell/Rite Aid distribution lease was voided during the companies' bankruptcy proceedings.

"The leasing momentum at SeaTac 3 underscores businesses' appetite for high-quality, well-positioned space in the market with the property now reaching 100% occupancy," said Lucca Merlino, Director of Leasing at Prologis.

Building Specifications and Location

The property offers direct access to Interstate 5, State Route 99 and Interstate 405. The facility features 38-foot clear heights, 45 dock-high doors, extensive trailer and employee parking, and modern distribution capabilities designed for large-scale industrial and manufacturing operations.

"This submarket has led the way for regional leasing trends for over a decade, and has consistently drawn interest from household name companies desiring state-of-the-art functionality and rapid access to the entire region," Mallory said. "The manufacturing project that will be using this property is cutting-edge and we are excited about the job growth and possibilities that it represents for our region."

Blue Origin's planned use combines laboratory, development and light-production functions, and the site could ultimately support hundreds of employees.

Seattle Industrial Market Context

According to Newmark Research, the transaction reflects a broader theme in the Seattle industrial market. Leasing activity has moderated and tenants have gained more options following a wave of new development, but companies continue to make long-term commitments to well-located, highly functional facilities.

Market data point to softer conditions. Seattle industrial vacancy reached 10.2% in the third quarter of 2026, up 140 basis points year over year, according to Cushman & Wakefield. Savills reported Puget Sound industrial vacancy of 12.7% in the third quarter, up 260 basis points year over year and the highest level in five years.

Puget Sound recorded negative 1.7 million square feet of year-to-date net absorption through the third quarter, though quarterly absorption improved to negative 12,947 square feet from negative 959,144 square feet in the second quarter. JLL reported average asking rents of about $1.06 per square foot, down from $1.08 per square foot a year earlier.

More than 1.1 million square feet of new space was delivered in the third quarter, all of it vacant, bringing year-to-date additions to nearly 2.9 million square feet. JLL also reported roughly 1.6 million square feet under development, none of it preleased. The region has added more than 44 million square feet of industrial space since 2020.

Implications for Prologis

For Prologis, the lease fills a large vacant building in a market with elevated availability and completes occupancy across its Des Moines Creek corridor holdings. Against the market backdrop, the transaction illustrates continued tenant demand for high-specification industrial buildings with airport proximity, highway access, dock capacity and trailer parking, even as vacancy has risen and tenants have more options.

About Newmark

Newmark Group, Inc. (Nasdaq: NMRK) is a commercial real estate advisor and service provider to large institutional investors and other owners, global corporations and other occupiers, and lenders. For the twelve months ended June 30, 2026, Newmark generated revenues of more than $3.6 billion. As of June 30, 2026, Newmark and its business partners together operated from over 195 offices with more than 10,000 professionals across four continents.

Sources

Newmark press release, Oct. 22, 2026: Newmark Arranges Full-Building Lease at Prologis Park SeaTac 3, Completing Lease-Up of Des Moines Creek Industrial Portfolio