Amazon Secures Full Lease of IRG's New 225K SF Development in Seattle Suburb

Amazon has leased the entire 33815 Weyerhaeuser Way S. property in Federal Way, Washington, from Industrial Realty Group (IRG). This lease provides Amazon with approximately 225,800 square feet of industrial space in the southwest corner of King County.

Redevelopment of Weyerhaeuser Campus

The property is part of the Woodbridge Corporate Park, which is a redevelopment of the former Weyerhaeuser headquarters. Weyerhaeuser moved to downtown Seattle in 2016, and IRG purchased the Federal Way site for about $70 million that same year. The development includes two industrial buildings totaling around 440,000 square feet. While Amazon occupies one building, the other remains vacant, with Colliers managing its leasing and marketing.

Infrastructure Investments and Economic Impact

IRG has invested approximately $3.5 million in infrastructure improvements at the former Weyerhaeuser campus. Enhancements include new sidewalks, lighting, roadways, landscaping, bike lanes, and stormwater systems. The two new buildings are expected to generate $6.8 million in tax revenue for the City of Federal Way.

Future Development Plans

IRG is also seeking approvals for a new business park on the 425-acre former Weyerhaeuser site. However, the timeline for this project remains uncertain and is contingent on market conditions.

Seattle Industrial Market Trends

The Amazon lease is notable in the context of the Seattle industrial market, which has seen relatively few large leases in 2024. The largest lease in the region so far this year was Frito-Lay’s 307,000-square-foot agreement in Snohomish County.

Vacancy Rates and Rental Prices

Seattle's industrial vacancy rate was 6.8 percent as of April, higher than the national average of 5.2 percent. Among Western markets, Seattle had the second-highest vacancy rate, behind Denver's 7.1 percent. Despite this, industrial rental rates in Seattle have been rising, with an average of $11.07 per square foot, an 8.8 percent increase over the past year. Nationally, rates were $7.96 per square foot, up 7.4 percent in the same period.