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February 01, 2017

Thurston industrial real estate market strong to end 2016

Business Examiner

A recent recap of Thurston County's industrial market from area real estate firm Kidder Mathews shows an active 2016 in terms of development, which should segue into a positive 2017.

Four industrial projects totaling some 764,200 square feet are currently under construction, with the largest being Medline's 700,000-square-foot distribution center in Lacey. That facility is scheduled to be completed early this year. Also notable are a pair of Kaufman Brothers projects under way, each at 30,000 square feet.

In the pipeline, IDS has 97 acres under contract at Hogum Bay Logistics Center and should close on the deal in early 2017; that project, per Kidder Mathews, is set for a late 2017 delivery.

Looking long term, Kidder Mathews reports that Thurston County has a "substantial amount" of land available to develop, with over 5.6 million square feet in the pipeline - the highest of the six Western Washington submarkets covered by Kidder Mathews. The firm reports that some projects have been delayed due to the ongoing environmental tug-of-war caused by the Mazama pocket gopher, a longtime issue within the county.

On the leasing side, the market had positive absorption of nearly 455,000 square feet in 2016. Current vacancy is at 2.94 percent, compared to 6.19 percent at the end of 2015.

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