EconomyAnchorage · December 17, 2025
Anchorage space running out
Anchorage’s industrial vacancy fell below 1 percent, leaving businesses with almost no warehouse space to lease.
Daily Alaska staff · December 17, 2025 · Anchorage
Anchorage’s commercial real estate market is tightening across every sector. Industrial vacancy has fallen below 1 percent citywide, retail leasing is accelerating in Midtown and South Anchorage, office vacancy sits around 12 to 13 percent, and the $300 million Block 41 development is moving forward downtown, according to a Q2 2025 market report from Ingram Alaska.
The industrial squeeze is hitting businesses directly. With vacancy under 1 percent, brokers are managing waitlists for warehouse space, and companies that need room to grow are finding few options available anywhere in the city.
Retail demand is pushing new tenants into corridors that had been quiet, with Midtown and South Anchorage drawing the strongest interest. Office space remains softer by comparison, but even that market is tightening as companies move to lock in space before rates rise again.
Downtown, the Block 41 project continues to advance, adding to a market that investors say is seeing its strongest momentum in years.
In this story
Questions people ask
How tight is warehouse space in Anchorage right now?
Industrial vacancy fell below 1 percent, so there's almost nothing to lease. It's making it tough for businesses hunting for storage or distribution space.
What's Block 41 in downtown Anchorage?
A 300 million dollar development moving forward downtown. It's part of a commercial real estate market that's tightening across the board in 2025.
Evidence
Sources
Claims and where they come from
- Anchorage industrial vacancy fell below 1 percent · ingramalaska.com
- Office vacancy in Anchorage sits around 12 to 13 percent · ingramalaska.com
- Block 41 is a $300 million development moving forward downtown · ingramalaska.com
- Retail leasing is accelerating in Midtown and South Anchorage · ingramalaska.com
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