Gamble On Kent Valley Pays Off with Largest Industrial Lease in the Market
SUMNER DISTRIBUTION CENTER
3700 - 150th Avenue Court E, Sumner, WA
Transaction Size: 441,358 SF
Largest Industrial Lease - 2013
At that time, no one was doing speculative construction. We believed that by being the first large, quality, speculative development off the ground we would have a very good chance to get the first large deal to come to market.
NAI Puget Sound Properties
In mid-2012, Industrial Income Trust and the Benaroya Company made a significant gamble on the Kent Valley market. They, along with their marketing team from NAI Puget Sound Properties, were convinced that the first large Class A industrial building to the market would be the first to lease. As such, they took significant steps to start construction on Sumner Distribution Center, a 441,358 square foot LEED-certified building during the waning months of 2012. They were the first of what would be an avalanche of new construction to the market.
"At that time, no one was doing speculative construction. We believed that by being the first large, quality, speculative development off the ground we would have a very good chance to get the first large deal to come to market," explained Arie Salomon, SIOR, CCIM.
All told, the Southend industrial market would produce 4.43 million square feet of new construction in 21 buildings over the next two years.
The gamble paid off as they completed the largest industrial lease in the market during 2013. The United States of America (Government), acting by and through the designated representative of the General Services Administration (“GSA”), has leased 381,792 square feet for a period of 10 years at Sumner Distribution Center.
The work on the project from design, construction, sale, and lease of the majority of the building has been extremely satisfying and a testament to the team’s ability to handle all facets of a commercial real estate transaction. Leading the way and being the first out of the gate in the downturn recovery after a period of approximately five years is exciting and a great sign of the healthy activity that is currently being experienced in the Kent Valley industrial market.