WEST VALLEY BUSINESS PARK
West Valley Business Park is a 19-building 205,655 sf multi-tenant business park strategically located south of the intersection of I-5 and I-405 freeway, 19 miles from Downtown Seattle. The property has frontage on SR-181 known as “West Valley Highway”, which is the key north – south arterial highway bisecting the Kent Valley and less than 2.3 miles from BKM’s The Exchange at Southcenter.
Built in 1982, the property is highly functional but lacks the necessary cosmetic improvements to increase rental rates to market and capture a continued share of tenant demand in a tightening submarket. The asset features a mix of incubator and small-bay suites averaging 1,150 sf, with industrial units on average 40% built out with office improvements. The building features 14-17’ clear heights with 163 grade level doors and is parked 2.1/1000 sf.
Currently 88% leased to 120 tenants, the asset boasts strong in-place occupancy indicative of the ability to leased by virtue of its functionality and location, despite its lack of modernization and notoriously stingy asset management approach. Rents are 7% below market averaging $1.45, compared to $1.56.
WEST VALLEY BUSINESS PARK
SEATTLE/PUGET SOUND MARKET
The Seattle/Puget Sound region is one of the most dynamic real estate investment markets in the country. It benefits from a combination of strict land use regulation, topographical constraints on supply, and employment growth that consistently ranks above the national average. The area possesses a critical mass of well-capitalized and innovative companies that are global leaders in industries such as aerospace, biotechnology, global health, research, retail, software, technology and wireless services. The Ports of Seattle and Tacoma, along with many growth-oriented internationally recognized firms such as Microsoft, Amazon, Starbucks, Nordstrom, Boeing, Nintendo, PACCAR, Expedia, Weyerhaeuser and Costco help stabilize the regional economy and provide consistent demand for support services. Joining this illustrious cohort are retail and logistics giants Target, REI, T-Mobile, Home Depot, IKEA, Excel Logistics and UPS-SCS. These big names all have major distribution centers in the region, further demonstrating Seattle’s appeal and economic strength.
Benefitting from the confluence of capital and collaborative environment, the region’s growth has consistently been stronger than other regions in the United States. In addition to the $40 billion endowment of the Bill and Melinda Gates foundation, at the center of this environment is the University of Washington, a globally respected, research-based institution with an annual research budget exceeding $1.4 billion. Think: What Stanford does for Silicon Valley, “U-Dub” does for Seattle. This significant capital base, paired with a highly knowledgeable workforce, is providing the opportunity for continued research and business activity at critical institutions in the area. This environment attracts and motivates other innovative and high-growth companies to establish a presence in the region. These industry leaders include, but are not limited to, AT&T, Google, Facebook, Intel, Twitter, Salesforce.com, Adobe Systems, HTC, and eBay.
LOCAL AREA - KENT
The City of Kent is located 19 miles south of downtown Seattle. Seattle has grown and continued to densify, forcing many industrial users to relocate down into southern communities, causing significant and steady demand increases focused on the South Kent Valley. As a result of the flight to affordability, Kent has rapidly grown into the sixth largest city in the State of Washington, offering residents a central Kent Valley location with excellent access to key transportation corridors including the I-5 and I-167. The city is home to over 128,000 residents boasting an average income of $64,000. As of March 2019, the unemployment rate is 4.2%, below the state-wide unemployment rate of 5.2%. As a result of its strategic geographic location, Kent has become the fourth largest manufacturing and distribution area in the United States and home to several large corporations including Amazon, Boeing, and REI. The large growing has been a key economic driver Kent, with median home values up 52% since 2000 to $320,000.