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December 07, 2015

K2 Sports leaves Seattle for big new facility near Sea-Tac Airport

Puget Sound Business Journal

Marc Stiles

Des Moines is on a roll as another employer, K2 Sports, is moving to a business park now under construction in the Seattle suburb.

K2 Sports has leased 165,000 square feet of space at Des Moines Creek Business Park, according to people working on that site's development. K2's current headquarters is in Seattle's Sodo neighborhood.

K2 is the latest company to move to the 87-acre development just south ofSeattle-Tacoma International Airport.

K2 Sport President and CEO Robert Marcovitch did not return calls, but Chris Corr, a commercial real estate broker who's marketing space for lease in Des Moines Creek Business Park, confirmed the move. It was unclear how many jobs K2 will take to Des Moines Creek Business Park, which Panattoni Development is building on Port of Seattle-owned land at the corner of South 216th Street and 24th Avenue South.

The project already had landed other big tenants. The regional headquarters of the Federal Aviation Administration is bringing 1,600 to Des Moines, mostly from Renton. The FAA's lease totals nearly 282,000 square feet.

Last week, an Irish convenience foods company called Greencore Group said it's moving 350 jobs from Sodo and adding 50 more in Des Moines. Greencore is taking 75,000 square feet.

Another group, Meiko America, also has leased space at Des Moines Creek Business Park, said Corr and Donnie Belk of Panattoni. Corr said the Kent-based freight logistics company has leased 34,000 square feet there.

Corr said he expects to finalize another lease at the business park soon. He said it won't be as large as K2 Sports' 165,000-foot deal.

"The buildings aren't complete, and they're already getting leases," city of Des Moines Economic Development Director Michael Matthias said Monday. "We're really excited about this."

Corr said it's rare to have this level of pre-leasing at an unfinished office/warehouse project. He said lease rates at the business park are higher than in the nearby Kent Valley industrial district but tenants are willing to pay because of the the property's proximity to Interstate 5. "It literally takes like seven minutes to get to the project," said Corr, who added proximity to Sea-Tac Airport is also a plus in the eyes of some users.

Tony Kusak, a broker with Cushman & Wakefield-Commerce, negotiated the Des Moines Creek lease for K2, and Doug Klein of Kidder Mathews handled lease negotiations for Meiko.

For the full story, go to Puget Sound Business Journal.

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