White River Corporate Park at 2200-2222 West Valley Highway North has 60,852 square feet of warehouse space.
KENT, WA—Amid limited developable land, two industrial parks in southern King County were recently sold to TA Realty. A local Puget Sound private investor traded Pacific West Business Center in Kent and White River Corporate Park in Auburn, WA to the real estate investment management firm for approximately $22 million.
The two properties encompass four buildings on 6.3 acres of land. Built in 1979 and located at 18852-18872 72nd Ave. South, Pacific West Business Center totals 60,530 square feet in a 3.3-acre campus setting. It is fully leased to nine tenants. White River Corporate Park at 2200-2222 West Valley Highway North has approximately 60,852 square feet of warehouse space in two buildings. Built in 2004, it is fully leased to five tenants.
The transaction was arranged by Colliers International industrial experts Bill Condon and Matt McGregor.
"The Kent Valley is one of the strongest industrial markets in the country due primarily to its location near the Ports of Seattle and Tacoma, Sea-Tac International Airport and rail connections," notes Condon. "Available existing product is limited, however, as are developable land sites, so these properties drew a lot of interest from investors looking to place funds in an environment of robust tenant demand and rising rents."
The vacancy rate in the Kent Valley totaled just 5.6% of its nearly 99 million-square-foot inventory of industrial space. Industrial properties valued at $565.6 million have traded thus far this year, a clear testament to the ongoing interest investors have in the area despite limited availability, according to Colliers' second quarter research report.
"Development is continuing to push south," Condon tells GlobeSt.com. "The Kent Valley is running out of buildable sites which should continue to push rents in this market."
As for pushing rents, McGregor echoes that sentiment, offering insight into which areas will see the highest rents.
"We think the greatest rent growth will happen in the north Kent and Renton areas," McGregor tells GlobeSt.com. "That is due to the point that there are very few viable land plays renaming and the largest demand is on smaller dock high-served spaces under 50,000 square feet. Developers are typically focused on larger developments of 100,000 square feet-plus in the Kent area, leaving the larger demand of smaller spaces under 50,000 square feet with no new product being developed or forecasted. Rents will rise and vacancy will decrease rapidly under these conditions."
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Lisa Brown
Lisa Brown is an editor for the south and west regions of GlobeSt.com. She has 25-plus years of real estate experience, with a regional PR role at Grubb & Ellis and a national communications position at MMI. Brown also spent 10 years as executive director at NAIOP San Francisco Bay Area chapter, where she led the organization to achieving its first national award honors and recognition on Capitol Hill. She has written extensively on commercial real estate topics and edited numerous pieces on the subject.
