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KENT, WA-Jim Kidder and Chris Corr of Kidder, Mathews & Segner recently closed the sale of a 99,000-sf industrial building in the Kent Valley that had gone under contract last spring. While vacancies have risen and rental rates have fallen over the last several months, Corr tells GlobeSt it is likely the sales price of slightly more than $5 million would be no less if it were to be put on the market today.

Representing the owner, Red Dot Corporation, Corr and Kidder put the 98,770s-sf building at 19021 80th Ave. S. under contract in April to Vectra Fitness Inc., a Redmond-based manufacturer of exercise equipment. “It was the classic story of an Eastside company seeing the benefit of buying in Kent when Eastside availability was tight and rents were high,” says Corr.

According to most research reports, overall Eastside vacancies last spring were running about 4.2%–but had jumped to 7.7% by the end of September. While Corr was unable to immediately provide current numbers on Eastside rents, he did say increased space availability may be impacting rates—but not so much for sales prices if an owner is patient.

“It’s a matter of supply and demand. There aren’t a lot of [industrial] buildings for sale in the Kent Valley market in this size range,” says Corr. If someone is looking to lease 100,000-sf, he says the options are plentiful. But, would-be buyers will find smaller properties in short supply in an area where most buildings are large and have been acquired by institutional owners.

Corr says the Red Dot still owns two other buildings in the Tukwila market. The property sold to Vectra, which is situated on 3.91 acres on the corner of 190th and 80th Streets, was “excess space” for the company that manufactures heating and air conditioning equipment for the commercial trucking industry. Situated on 3.91 acres on the corner of 190th Street and 80th Avenue, the 98,770-sf building includes 6,000 sf of Class A office space.

A records check performed by the Bellevue office of First American Title says Red Dot purchased the 80th Avenue property in 1988; however, the sales price was not immediately ascertainable. It had been on the market since mid-2000 with an original asking price of $5.52 million.

Mat Wood and Tom Robinson, also of Kidder Mathews & Segner represented Vectra in the transaction.

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