TUKWILA COMMERCE CENTER

PROJECT SUMMARY

DATE ACQUIRED

Aug. 2016

LOCATION

Tukwila, WA

SIZE

476,765 SF

TENANTS

280

YEAR BUILT

1978

MARKET
REGION

The City of Tukwila is located 13.5 miles south of downtown Seattle, directly across the I-5 and 405 Freeway from the Sea-Tac Airport in the South Kent Valley. Tukwila is bisected by the I-5 Freeway, the most significant coastal interstate thoroughfare connecting to the Mexican border to the south and the Canadian border to the north. As Seattle has grown and continued to increase density, many industrial users have been forced to relocate to the surrounding southern communities, causing significant and steady demand increases focused on the South Kent Valley, along the I-5 corridor.

The City of Tukwila provides affordable housing alternatives, while remaining in very close proximity to the allure of the downtown Seattle amenities and lifestyle. As a result, the region has seen an influx of quality retail and restaurant options, supporting the growing population. 

CORPORATE ENVIRONMENT

Seattle’s diversified economy is bolstered by a strong corporate presence from some of the nation’s leading technology, logistical and aerospace companies such as Microsoft, Amazon, and Boeing, collectively employing over 140,000 people at various locations in the Seattle metro area.

 

The unique combination of a lucrative transportation infrastructure, business-friendly environment and a well-educated and growing labor force has caused Seattle to become the economic force within the Pacific Northwest and continues to attract a strong corporate presence. 

LABOR INCENTIVE

Business parks in Tukwila have directly benefited from a 2014 law passed by the City of Seattle, increasing the minimum wage to $15 per hour. Since the law passed, low wage businesses have been migrating south of the Seattle city limits to Tukwila where the minimum wage is $9.47 per hour.  For example, DHL recently announced it is moving its daily airplane delivery service from Boeing Field Airport to SEA-TAC due to the minimum wage increase (the seventh carrier this year).  Now 10 miles closer to the subject property, DHL and the numerous small businesses that service its operation will begin to occupy vacancies in Tukwila. This directly translates to increased net absorption in the submarket.

 

MARKET INDICATORS

The Seattle industrial market is composed of 265MM sf, with current vacancy of 3.2% down from the peak of 9% in 2010. Tukwila is located in the Kent Valley submarket, the largest industrial submarket in the Seattle region, which is made up of just over 100MM sf of warehouse, manufacturing and flex product. Tukwila is currently 2.6% vacant and continues to tighten rapidly, absorbing 495,557 sf in Q2 2016 constituting 21% of the positive net absorption across the entire market.

PROJECT PHOTOS
BKM CAPITAL PARTNERS

 

Headquartered in Newport Beach, California, BKM Capital Partners is a fund manager specializing in the acquisition and improvement of value-add multi-tenant industrial properties in metro areas across the Western U.S. Combining a deep knowledge of this niche industrial product type with in-house capabilities including on-site property management, asset management, and structured financing, the firm continues to build on its proven track record, generating strong results with high levels of transparency and engagement for investors. 

Learn more about BKM Capital Partners »

BKM MANAGEMENT COMPANY

 

BKM Management Company manages a portfolio of 8.2 million square feet of multi-tenant industrial properties for BKM Capital Partner’s private and institutional investors. With a focus on “boots on the ground” execution at the property level, BKM has in-house capabilities for both property management and leasing. The teams at the property level are focused on ensuring the tenants thrive and that the properties managed in the most efficient way.

 

 

 

Learn more about BKM Management Company »

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CONTACT US

Phone: 949.566.8800

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