Boeing's largest, listed surplus property in Puget Sound is the 240-acres of master-planned Pacific Gateway Business Park in Kent. Rather than outright sale of the land local experts describe as "a gem," Boeing chose disposition via build-to-suit sales.
The three-year-old project is slated for more than two million sf of offices, industrial, warehouse and distribution buildings. But Boeing has yet to cut a deal with a single developer. GlobeSt.com sources say that's due to the inherent difficulties in dealing with the mega-corporation.
Speaking only with anonymity, one source says a major developer interested in Pacific Gateway recently "threw up its hands" and bowed out. "With the state the economy is in, developers don't have time to waste (with all the red tape and indecision). Why mess with a big elephant when there are thoroughbreds out there racing to get deals done," says the broker.
Another GlobeSt.com source says obtaining information from Boeing Realty, such as firm pricing, availability and intended use of its properties, is akin to stapling Jell-O to a wall. They say, "Boeing just says, 'make us an offer and tell us the buyer, and we'll let you know if we're interested. The brokerage community (in Seattle) is frustrated. There are too many layers in (Boeing's) real estate department. Everyone is watching everyone else's back—afraid to make a mistake—and they can't make quick decisions. Boeing's rules are always changing and they don't go out of their way to help the brokerage community sell their properties."
According to its Web site, Boeing Realty is planning the development of the Spectrum Technology Center on 9.84 acres on East Marginal Way in Tukwila. The content states the project will be completed this coming October. However, in speaking with Rick Osterhout of the Seattle office of Kidder, Mathews & Segner, the broker for the property, Boeing is rethinking the 212,000-sf flextech/industrial building, which has not moved beyond the concept phase.
Originally designed for high-tech uses, Osterhout says, "Boeing is evaluating all their holdings. Because the bloom is off the rose in terms of market demand (and the high-tech decline), this project will probably be pushed back because it (the 212,000-sf build-to-suit project) needs a user to justify kicking it off. We are reevaluating and studying what would be the property's highest and best use." Osterhout says Boeing would consider an outright sale of the property "as is." However, he has never been authorized to quote a price.
Want to continue reading?
Become a Free ALM Digital Reader.
Once you are an ALM Digital Member, you’ll receive:
- Breaking commercial real estate news and analysis, on-site and via our newsletters and custom alerts
- Educational webcasts, white papers, and ebooks from industry thought leaders
- Critical coverage of the property casualty insurance and financial advisory markets on our other ALM sites, PropertyCasualty360 and ThinkAdvisor
Already have an account? Sign In Now
*May exclude premium content© 2024 ALM Global, LLC, All Rights Reserved. Request academic re-use from www.copyright.com. All other uses, submit a request to [email protected]. For more information visit Asset & Logo Licensing.
