Realty Income Buys 501,250-SF Fife Warehouse From Clarion Partners for $108 Million

A limited partnership affiliated with San Diego-based net-lease investor Realty Income Corp. has acquired a 501,250-square-foot warehouse in Fife, Washington, from an entity affiliated with Clarion Partners for approximately $108 million, in one of the largest industrial real estate acquisitions in Pierce County this year.

The property, Pacific Coast Corporate Park II at 4179 70th Ave. E., sold for a recorded price of $108.37 million, or roughly $216 per square foot. The sale was recorded Sept. 29, 2026, and ranks as Pierce County's third-largest industrial sale of 2026. New York-based Clarion Partners was the seller.

Warehouse Real Estate Deal Details

Pacific Coast Corporate Park II is a single-building warehouse and distribution facility built in 2007. The property is fully leased.

The transaction details are as follows:

• Property: Pacific Coast Corporate Park II, 4179 70th Ave. E., Fife, WA
• Size: 501,250 square feet
• Price: approximately $108 million ($108.37 million recorded)
• Price per square foot: roughly $216
• Buyer: a limited partnership affiliated with Realty Income Corp.
• Seller: a limited partnership affiliated with Clarion Partners
• Recorded: Sept. 29, 2026

Clarion Partners acquired the property in 2006 for $32.6 million. The $108.37 million sale price is approximately 3.3 times that figure, before accounting for capital improvements, financing, operating income or changes in building value. Pierce County records show a current assessed value of just under $76 million.

Industrial Real Estate Acquisition in a Softer Puget Sound Market

The sale closed as the Puget Sound industrial market reports weaker demand, rising availability and higher capitalization rates. Second-quarter regional vacancy ranged from 11.7% to 12.6% depending on methodology, with asking rents of approximately $1.04 to $1.15 per square foot per month.

• CBRE reported Puget Sound industrial vacancy of 11.7% in the second quarter, with new deliveries outpacing absorption.
• Savills reported 12.6% vacancy, up 300 basis points year over year and the highest level in five years, with average asking rents of about $1.04 per square foot per month, slightly below the prior year.
• CBRE reported negative first-quarter net absorption of 411,708 square feet. Five projects totaling 1.4 million square feet were delivered, and only 325,000 square feet was pre-leased.
• Lee & Associates reported Puget Sound industrial cap rates of 6.30% in the second quarter, up from 5.85% in the first quarter, while average sales pricing fell to $211.71 per square foot.

The Fife property's pricing of about $216 per square foot is broadly in line with the reported regional second-quarter average of $211.71 per square foot.

Realty Income and Clarion Partners Strategies

The acquisition is consistent with Realty Income's focus on large, income-producing commercial properties subject to long-term leases. A fully leased warehouse offers contractual income and exposure to logistics demand without lease-up of vacant space, a consideration in a market where availability is rising.

For Clarion Partners, the sale ends a hold of roughly 20 years. Dispositions of mature assets can allow investment managers to return capital to investors or rebalance portfolios.

Market Implications

The transaction illustrates a split in the industrial market between stabilized, income-producing assets, which remain marketable to institutional and net-lease investors, and vacant, recently delivered or rollover-exposed buildings, which face greater pressure from rising vacancy and tenant concessions. Industrial fundamentals are no longer as uniformly strong as during the pandemic-era logistics boom. New construction, slower tenant expansion and longer decision timelines, particularly among large distribution users in the South Sound, have weakened near-term leasing momentum.

Higher cap rates imply lower values for assets with unchanged income, while large-box logistics properties near major transportation corridors benefit from high replacement costs and limited suitable sites. The sale was first reported by the Puget Sound Business Journal.

Sources

• Kidder Mathews: Pierce County Property Acquired by San Diego Investor for $108 Million
• Puget Sound Business Journal: Clarion Partners Fife warehouse sale to Realty Income