Arson Destroys 1.2M Sq Ft Kimberly-Clark Warehouse: Supply Chain Shock and Warehouse Fire Lessons

On this Five-Minute Friday episode of the Industrial Advisors podcast, hosts Bill Condon and Matt McGregor discuss a 1.2 million square foot Kimberly-Clark warehouse fire in the Inland Empire that they immediately suspected was arson because the entire building burned despite sprinkler systems typically containing fires. They note Kimberly-Clark distributes paper goods and that the facility held about 3% of its U.S. capacity serving roughly 50 million people. The fire reportedly began around 12:30 AM during a graveyard shift with about 20 employees present; everyone escaped without casualties, and the suspected arsonist—described as a disgruntled employee of a third-party logistics operator—allegedly live-streamed igniting pallets before leaving and later being arrested. They relate other major warehouse fires and cite an AI search suggesting substantial warehouse fires occur more than once per year, underscoring the need for proper fire suppression systems.

0:00 The Inland Empire Warehouse Fire

1:15 Arson Suspicions and 3PL Impact

2:45 Supply Chain Disruptions

3:50 Historical Warehouse Fires in the Valley

5:10 Fire Safety and Suppression Importance

Industrial Advisors Q1 2026 Recap: Vacancy Hits 10.3%, Deliveries Drive Negative Absorption, Activity Rising

Bill Condon and Matt McGregor recap Q1 2026 industrial market conditions, noting overall vacancy reached 10.3% (first time above 10% in their careers) and net absorption around negative 1 million square feet, pressured by roughly 3.1 million square feet of deliveries and ongoing subleasing. Despite weak headline numbers, they cite increased leasing activity, including seven deals over 100,000 square feet (four new deals) and expect about 6 million square feet of large deals to be signed in coming quarters, with the hosts predicting positive absorption in Q2 followed by a strong year. Submarket vacancies include Pierce County at 12.8%, Kent Valley at 10.3%, North end 8.7%, Eastside 7.1%, and Thurston County 6.9%. Construction is slowing (about 1.5 million square feet under construction across four buildings), while investment sales totaled $226 million, led by Gateway North at $76 million and Aries' $40 million acquisition.

0:00 Intro and Q1 2026 Market Recap

0:45 Vacancy Hits 10.3%

2:05 Negative Absorption and What's Driving It

3:20 6 Million Square Feet of Large Deals Ahead

5:05 Submarket Breakdown Across the Region

7:10 Seven Leases Over 100,000 SF

8:30 Construction Pipeline Slows Sharply

9:40 Notable Investment Sales in Q1

11:15 Oldest Vacancies and Tenant Opportunities

13:10 Q2 Outlook and Market Forecast

Industrial Advisors Podcast: Travis Hale on Pacific Northwest Industrial Development, Class A Flight to Quality, and Land/Entitlement Challenges

On this episode of the Industrial Advisors podcast, Bill Condon and Matt McGregor interview Travis Hale, partner at Panattoni Development, about Pacific Northwest industrial development. Hale describes a continued flight to "new" Class A product, noting that 2015-era Class A can now be first-gen and may see rent declines while brand-new Class A is pushing rents. He outlines Panattoni's I-5 corridor activity across Washington, Oregon, and Idaho, citing roughly 14 million SF across 34 Seattle-office projects, about five new starts this year, and key developments including Fred310 in Frederickson, Des Moines Creek/Seattle Gateway near SeaTac, and Mount Vista in Ridgefield/Vancouver. They discuss market vacancy (about 10% Seattle, 6.8% Portland), big-box demand, tight land supply, multi-year entitlements, improving equity conditions, and the organizational impact of Bart Brynestad's retirement and his "get it leased" philosophy.

0:00 The flight to quality in industrial real estate

2:45 Introducing Travis Hale and Panattoni Development

5:30 Current projects and the big box market outlook

8:15 Understanding vacancy rates and rent growth

11:00 Land competition and the entitlement process

14:30 Pioneering new markets and job distribution

17:45 The state of equity and capital markets

20:15 Regional trends and the legacy of Bart Brynestad