Greetings and welcome to May 2004 and Schuler Properties’ Market Update and Properties Available Newsletter. Summer is here – Yippee!
More important than the update is the Boys & Girls Clubs Champions for Kids luncheon two weeks from today, at 11:30, May 17th, at the Tacoma Dome Convention Center. Yours truly is the Honorary Chairman. Carol Milgard and Willie Stewart are receiving the Stan Naccarato Community Service Award for their long-standing contributions to the community. Please contact our office, or the Boys & Girls Club at (253) 572-8440 if you would like to attend.
Last month’s biggest industrial deal may not be industrial at all. The Puyallup Tribe purchased the 100-acre Dekeyser property in Fife, but has not made any announcement regarding its plans. This was originally part of OPUS’ Pacific Coast Commerce Center, but OPUS dropped its option last year due to market conditions, which picked up just a little too late for OPUS. The price is rumored to be approximately 3.00. This takes one of the largest blocks of zoned industrial land off the market and the tax rolls. This may create near-term pressure on land prices and will also cut tax revenue to Fife and its schools.
Knapp Development and Washington Capital have started construction on the second building at Sumner Corporate Park titled the “Baker Building”. It will be 380,000 square feet of 30-foot clear distribution space. We wish them luck in leasing this as quickly as the Summit Building was leased.
As reported last month, the vacancy in the industrial market we track has fallen from 16% to 8% in the past year, and appears to be falling still. Owner occupant industrial buildings are selling quickly as well, and new inventory is not coming online at the same rate. This could translate into rising prices for this type of property and cause the properties with functional obsolescence to be more attractive as they are the only properties available for purchase.
Speaking of vacancy, Bart Brynestad, long-time OPUS development rep for South Puget Sound moved last month to Panattoni. This leaves a void at OPUS, but Dick Wieneke of OPUS seems qualified to fill the vacancy. Brynestad said his major reason for moving to Panattoni was an opportunity to be a development partner. We wish both him and Dick good luck in their new positions.
We have a new listing we would like to promote, the Action Furniture Warehouse at 3323 South Lawrence Street. It is fully-leased, 57,000 square feet, offered for $2,150,000.00. While not 24 foot clear, nor entirely made of concrete, it is sprinkled, has excellent truck loading and plenty of extra room for parking. Please let us know if you would like additional detail on this.
We also have a client looking specifically to buy mini storage. It is a mom and pop buyer, so they would also look at units that don’t fit the cookie cutter used by the big chains.
We hope to see you at the Boys & Girls Clubs
luncheon on the 17th and to transact some business with
you this summer!