Industrial Light (IL) companies continue to face the Tri-Cities commercial market’s most prominent problem; a lack of 2nd generation buildings that could house newer-growing companies facility needs. The other part of the problem for these companies is finding the appropriately zoned property for the business needs after knowing the limited existing facility Market. The third zinger is if that Company wants to stay loyal to their current City for intangible / tangible reasons. Finding that next spot for your growing Client is a challenge to start with but hey, you need to be an excellent problem solver to thrive in this industry! This applies to both Purchase and Lease transactions.
Despite our Market setbacks for Industrial Light properties; the process of elimination of current ideas or future developments on raw parcels teach you the efficiencies for current pipeline and future Clients. I’ve been on a client assignment for Padilla Masonry Inc. (www.pmiwa.com) the past 24 months for a larger facility. They have been busting at their property’s seams with a crucial need for more lay down space for their inventory and trucks being deployed. Their needs are no different than the “sweetspot” for most of the Industrial Light wants & needs:
- Minimum 1.5 acres
- 5-10k SF Warehouse
- Small amount of offices
- Fenced in laydown yard area
- Easy logistical access
After filtering through all Industrial zoned areas of the Tri-Cities; we focused on 3 ideas in Kennewick as preferred by PMI who is currently in Downtown Kennewick. Once we elimated all current buildings due to reasons relating to operational fit, too little/too big, or the economics wouldn’t pencil after improving the current property it was decided that purchasing raw land would be the best option. One land option was in the Southridge area near the Urban Growth Boundary while the other is in Downtown Kennewick. The Southridge parcel had several challenges to make it work and the timeframe for feasible development would take longer than what operational needs can afford.
Then it made sense! The 3 acre parcel(s) in Downtown Kennewick was zoned Industrial Light, flat and had utilities and was actively for sale within our budget. This last sentence in my mind sounds too easy, knowing all the work that has led up to putting this property under the microscope. Regardless, there it was 3 acres right on Gum street & Brunaue where it’s sat for the last century empty… TIME TO ACT and solve PMI’s growing pains and need for secured laydown space. Final Pitch to Buyer, Negotiate, Under Contract, Due Diligence, more Due Diligence on 50 year old easements, Close and now #GetToWork.
What’s great is that PMI is building a ~10k SF warehouse that will have over 5k SF of it available for another industrial light tenant with the “sweetspot” of needs incorporated into it. Now the time,effort and resources that another IL company would spend going through the site selection process can now have a lease option to consider. Not all IL companies have the time, capital or resources to go through the site selection process that PMI just did but this lease option will add another feasible idea into the Marketplace. There is a early version of a site plan map of what the site will look like and should be available by Spring ’17. If you’re reading this and think this could be a fit for you and a IL company; please reach out!