One of the Last South Sea-Tac Sites Will Go Industrial
The South Tacoma industrial market is recording strong demand growth, fueled by a large labor pool and a lack of available product, which is why Bridge Point Lacey represents a rare opportunity for distribution space.
LACEY, WA—While there is a shortage of industrial supply relative to demand, the greatest issue is available land for development. This is giving an advantage to developers currently active in the market.
Five industrial buildings totaling 1.75 million square feet were completed during second quarter. Another 4.4 million square feet of industrial product is currently under construction, 95% of which is actively marketed as available. The majority of this is speculative development, according to a second quarter report by Cushman & Wakefield. The firm says it expects a good portion of projects to be located in Pierce County as King County sites become increasingly rare in the future.
However, Thurston County is also running short on land options. Bridge Development Partners LLC acquired a 41.24-acre site there at 3301 Hogum Bay Rd. NE. Terms were not disclosed. The site represents one of the last remaining large sites available for industrial development in the southern portion of the Seattle-Tacoma core industrial market, which also has been experiencing significant demand for modern distribution/logistics facilities.
The transaction represents Bridge Development’s first land acquisition in the Pacific Northwest since the firm hired Justin Carlucci to lead its northwest region office in Seattle earlier this year.
“Bridge Point Lacey represents a rare opportunity for companies in search of distribution space capable of serving the broader Pacific Northwest market,” Carlucci says. “The South Tacoma industrial market is seeing tremendous growth in demand, fueled by a great labor pool and a lack of available product.”
Bridge Point Lacey will be an industrial complex totaling 705,590 square feet across three buildings. Building A will be the largest, encompassing 496,884 square feet with 36-foot clear heights, 130 truck docks, 185-foot truck court, 129 trailer stalls and 273 parking stalls. Building B will total 110,608 square feet with 32-foot clear heights, 25 docks, 130-foot truck court and 112 parking stalls. Building C will total 98,098 square feet with 32-foot clear heights, 21 docks, 185-foot truck court, 25 trailer stalls and 81 parking stalls.
The site is 1.5 miles from a four-way interchange onto Interstate 5, and within an hour’s drive of seven of Washington’s 10 largest cities. The Port of Tacoma is less than 25 miles away, the Port of Seattle is 60 miles away and the Seattle-Tacoma International Airport is within 50 miles.
“This area has more available labor and more affordable living conditions for that labor,” Carlucci tells GlobeSt.com. “Wages are 15% lower for the average warehouse worker in comparison to Pierce and King Counties. And, it’s within 30 minutes from the Port of Tacoma, where the majority of the region’s container traffic enters the market. Its proximity to the Portland market is also appealing for users interested in serving both markets.”
The seller was Northwest Building Corp., a private real estate investment company owned by the Weyerhaeuser family, which purchased the site out of foreclosure in 2011. Northwest Building Corp. was represented in the transaction by Bruce Valentine and Scott Price of Neil Walter Company. Bridge was represented by Joel Jones of Neil Walter Company. Jones and Valentine will market the future buildings.
Because it is on one of the last remaining large sites available for industrial development, this will allow the construction of a high-tech 500,000-square-foot building with ample trailer parking, car parking and maneuverability, LED lighting, the ability to fully secure the site and truck courts, and 135 to 185-foot truck courts. And, at the magic number of 36-foot clear height, this will appeal to the latest in e-commerce logistics users, GlobeSt.com learns.