The company's BizMiner Business Vitality Review ranks geographic areas based on the net number of local firms and jobs gained during the study period. Mark Turner, president of the Spokane Area Economic Development says that Spokane's feat is even more pronounced by the fact that this city does not have the benefit of "spillover growth" from a major metropolitan area such as top ranked Tacoma, Wash. and Vallejo, Calif. "We have to begin from scratch," says Turner.
The growth in Spokane is evident in the real estate numbers as well. The last several months, office vacancies in the downtown core have tightened to their smallest numbers in many years, while rents are on the rise. March Pinch of Tomlinson & Black says occupancy in Class A CBD space is nearly 97%.
Office markets outside the city's core, such as the North Side and South Hill, are experiencing lower vacancy rates as well thanks to the overflow factor. The current average vacancy in those areas of 5.4% is more than 1% better than this time last year, and rates are up $2/sf in just the last several months to $15/sf.
As well, Liberty Lake Center, a 99-acre business park 15 minutes east of Spokane owned by Metropolitan Mortgage & Securities Co., is nearing completion after just four years. As of last month, only a few small parcels remained for purchase in the $75-million mix of retail, light industrial and light tech space. Just last month, only a few, very small parcels remained for purchase. The rest is either developed or in the midst of construction.
"Growth is everywhere, and the CBD is really healthy," says Pinch, adding that there is a lot of demand for good office space and good industrial space. "We have a lot of buyers for buildings, especially in the 5,000-sf to 20,000-sf range."
An example of the industrial demand can be seen in BFGoodrich Aerospace, a division of North Carolina-based BFGoodrich Co. In 1999, the company opened a $66-million plant that manufactures carbon brake disks for aircrafts. At the time, the company anticipated it was on track to employ 250 people by 2005, but reality is outpacing those initial projections. BFG expects to more than double its payroll this year to 111 employees. The growth has quickened a doubling of its Westbow Boulevard facility this year to more than 140,000 sf.
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