Cushman & Wakefield Brokers Sale of 150-acre Industrial Site in Longview, WA
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Cushman & Wakefield recently facilitated the sale of a significant 150-acre industrial development site in Longview, WA, strategically located near the Port of Longview on the I-5 corridor. Cascade Civil Development, an Oregon-based company known for habitat restoration and construction services, is the new owner, having purchased from Weyerhaeuser. Commentary from Dominic Vinti, SMARTCAP's Senior Acquisitions Analyst: A 150 acre parcel of land has traded in Longview, WA. Cascade Civil Development has acquired the industrial dirt, which has permitting in place to begin developing new industrial product shortly. The acquisition shows a further push north for big box industrial development sites. Due to the urban growth boundary in Portland and a warehouse moratorium in Clark County, WA, viable industrial development sites have been hard to find in the greater Portland area. Longview, located about an hour from Portland & two hours from Seattle, has the opportunity to produce approximately 2MM SF of logistics space along the I-5 corridor. |
Pokemon Co. Eyes Major Office Space in Downtown Bellevue's Tower
Pokemon Co. International is rumored to be considering a significant lease in the under-construction 25-story office tower, "The Eight," by Skanska USA in downtown Bellevue. Sources suggest the company might take up over 56% of the 540,000-square-foot tower, approximately 300,000 square feet. While neither Pokemon nor Skanska confirmed the lease, Pokemon remains committed to the Bellevue business scene. The Eight's launch is keenly anticipated, with several tenant announcements expected soon. Pokemon's expanded presence could provide a lift to Bellevue's office market, which has seen Microsoft Corp. retract from the city. Other Bellevue occupants, Amazon and Meta, are also reassessing their real estate strategies, but companies like Bytedance, TikTok's parent, are increasing their footprints.
Commentary from Spencer Esau, SMARTCAP's Acquisitions Manager
Pokemon Company International is on the verge of taking 300,000 SF in Skanska’s new office development, "The Eight". With this lease, 90% of the 7.7 million square feet under construction on the Eastside will be preleased. While the Eastside is experiencing a challenging office environment, new construction continues to be absorbed at a high rate. This dynamic should ease pressures commonly associated with an overbuilt market. Pokemon Company International is a subsidiary of The Pokemon Company, responsible for managing and licensing the Pokemon brand outside of Asia.
US Industrial Market Update: Q3 Insights
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The U.S. industrial vacancy rate increased to 4.7% in Q3, a rise from 4% the previous quarter and 3% from a year ago, due to a surge in construction and a decline in leasing activity. Commentary from Dominic Vinti, SMARTCAP's Senior Analyst Vacancy rates across the national average for industrial real estate rose in Q3. The National Vacancy Rate hit 4.7%, main drivers to the uptick in vacancy were increased number of warehouse completions and softening tenant demand. The high number of completions are due to the record number of construction starts during the low interest rate environment of 2020-2022. Current vacancy rates are still considered healthy and remain below the pre-pandemic levels. National vacancies are still expected to increase into 2024, but not reach alarming levels. We are beginning to see the end of the industrial construction binge, and industrial warehouse starts are down significantly in 2023. Even with tenant demand slowing in the near term, the lack of industrial completions in the medium term will create a balanced environment for tenants to absorb the completed spaces while allowing vacancy rates to moderate. |
Cloudvue 2.0: Major Changes Proposed for Bellevue Skyscraper Project
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Cloudvue, a proposed three-skyscraper mixed-use development in Bellevue, is undergoing significant changes. According to recent submissions to the city: Commentary from Spencer Esau, SMARTCAP's Acquisitions Manager The original plans for Cloudvue Bellevue included one of the largest speculative office projects in the history of the Eastside. The new plans indicate that all 1.7MM square feet of proposed office product is being shifted to residential. This about face is a critical development for the larger Eastside commercial real estate market. A substantial office delivery would have flooded the market with new product but replacing it with residential will instead serve to bolster the office market over the long-term. |
SMARTCAP's Baker View Distribution Center Nears Completion: On Track for Jan 2024 Delivery
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SMARTCAP's Baker View Distribution Center in South Everett's Seaway Industrial Park has hit the 60% completion mark, with key milestones achieved, including roofing system installation and full asphalt paving. These accomplishments reduce weather-related risks as the Pacific Northwest enters the rainy season. The premier 166,000-square-foot Class A distribution facility is on track for its scheduled delivery on January 23rd, 2024, with an aerial photo of the progress captured by a drone. Commentary from Brian Burmester, SMARTCAP's Director of Acquisitions Over the past several months, SMARTCAP has made substantial progress in the development of our Baker View Distribution Center (Baker View) located in the heart of South Everett's Seaway Industrial Park. As of October, the project has surpassed the 60% completion mark. Baker View, a premier 166,000-square-foot Class A distribution facility, has achieved significant milestones as we approach the Pacific Northwest’s rainy season. Including the full installation and weatherproofing of the roofing system and the completion of the asphalt paving encompassing the entire building. These milestones are critical to the project as these improvements remove a significant amount of weather-related risk. Baker View is on schedule for its target deliver date of January 23rd, 2024. |
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