Empty Space and Lease Rates in Thurston County

Leasing is a tricky deal. Landlords need to keep their rates at a level pursuant to the value at which the building was purchased. But tenants need to keep their rates at a level with the income of their business. When these two goals are at odds, the result is generally empty space.

This year, I am counseling my landlords to review their rates, think about what they can live with that will make their properties the most attractive in the market. The number of "for lease" signs around town is not a mirage. We have a glut of empty space. It used to be just office space, but now I'm seeing more and more retail space as well. Warehouse space is leasing, but mainly just the smaller spaces. We have a huge amount of large empty warehouses out there as well.

If you want your space to float to the top, ask me what it will take... I am more than happy to sit down with you and go over your leasing plan. Each space is individual, each location special, leasing is not a one size fits all marketing effort. So tailor your property appropriately, and you can attract those few tenants floating around looking for your space.

Buildings in Downtown Olympia

This morning I was asked if I knew any buildings in downtown Olympia for sale. If I could get $1 for every time someone asks me this question, I would be rich. There is a myth that downtown Olympia is not doing well. There are only 2 buildings in downtown Olympia listed as on the market right now. Both of them are close to going to auction, both of them are huge, both of them are overpriced for the amount of work required, neither of them would work for a bank loan.



My 2 cents.
Finding a building in downtown Olympia IS possible, but it is all about who you or your agent knows and patience. You need to have a good relationship with someone who does this for a living. We are the only ones who have the patience and the reason to keep checking back in with the building owners. So, find an agent who is connected to building owners downtown, put the word out quietly, and then wait.

Thurston County Economy 101

Well, it's January 2009, and for better or worst, we have entered a new time in our economic vitality.

In my travels around the community and various civic involvements, I am frequently asked, "how's the commercial market?"

Since entering this arena, the question has pervaded my life, and I have various levels of answers, so this morning when contemplating how I can most help my clients and friends using my knowledge of the market and research skills, I decided I would dedicate this blog to keeping everyone abreast of my observations and insights on the Thurston County commercial market.

I would like to start this ongoing process with a little description of the basic economics of this market.
Olympia is the Capitol of the State of Washington. It is home to two four-year colleges and one two-year college. Much of the state government is located in Olympia, which makes Thurston County home to its employees. We are also just south of one of the largest military installations in the country, Fort Lewis. We are 90 minutes from the Pacific Ocean and roughly 90 minutes from the Cascade mountain range. We have a stable workforce, a stable economy and high quality of life. Our values have not dropped like others, but we are feeling some of the crunch of the international economic crisis. Our unemployment rate is fairly low and fairly steady and even it has risen to 5.8 percent in the past three months.

All of that said, our home values have not dropped anywhere near the national average and our commercial real estate has slowed, but less signficantly then elsewhere. If you are a buyer looking for a deal, they are out there if you look hard and work with an agent who has your best interests at heart. If you are a tenant looking to expand or contract your space, now is the time. If you are a seller, and you can hold on. HOLD on. If you need to sell, be realistic, and your property will move, maybe even quickly.