December 2003

Greetings, and welcome to December 2003. This is the Schuler Properties' market update together with our property listings. If you are interested in more detail than what is contained here, try our web site at www.schulerproperties.com. If you are interested in what's doing in the local industrial property market, read on. If you are interested in neither, close this window and push delete.

We have one new listing to report, the 30,000+ square foot former Stellar Industrial Supply at 1674 Lincoln Avenue, $1.3 million. Also, our pending sale of Lot 22 at the Woodworth Industrial Park is no longer pending, but we do now have SEPA approval for a 6,000 foot building on that 38,000 square foot site.

Meanwhile, we leased one of the bays at 2523 Pacific Highway East to Johnny's Enterprises, leaving us with two contiguous bays of 8,300 square feet each. Each of these offers dock high and grade level loading and 400 square feet of office. We are also pleased to report the pending sale of the 1.9-acre RAI commercial site on Highway 99 near Olympic Boat.

At the beginning of October, we reported industrial vacancy in buildings over 20,000 square feet had plummeted from about 16% to 11% during the second and third quarter of this year. The net absorption is continuing at a slower pace. We expect industrial vacancy of around 10% by year-end.

On a separate subject, it is nice to see a construction crane over downtown Tacoma, which is privately financed. Our hats are off to Rainier Pacific Bank, who is building a new headquarters at 15th and Pacific, complete with spec office space. Until next month, we remain very truly yours, Schuler Properties.

P.S. We have a south King/north Pierce county requirement for a bus repair facility, 2 to 4 acres of yard, 6,000 to 12,000 square feet of grade level shop or warehouse space. Lease or purchase. Need by February.