COMMERCIAL REAL ESTATE
Courtyard by Marriott hotel construction at Argent Road and 20th Avenue in Pasco. | Photo by Scott Butner Photography
Costs continue to drive up prices BY ROBIN WOJTANIK
C
ommercial real estate agents cite years of ongoing growth for the Tri-Cities’ especially tight market today. “There’s a lot of leasing, a lot of sales, a lot of new construction going on,” said Rob Ellsworth, senior advisor at SVN | Retter & Co. in Kennewick. “Our market might even be too strong right now because every contractor is filled up. Contractors are selling buildings now that they’re going to put up in 2020. They’re not usually booking this many out.” That’s led to an expected effect of higher prices for new builds. “Everybody I’ve talked to says,
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‘Man, prices are really high.’ And that’s not a negative against our contractors, that’s a function of the market,” Ellsworth said. “There’s so much demand for construction work, contractors can and need to charge more because they’re paying overtime to finish these projects.” In a report produced by Nikki Griffith, owner of Appraisal Group SEWA in Kennewick, she projected 2.9 million square feet of new construction from 2018-19 across all real estate sectors in Benton and Franklin counties, with about 8 percent, or 230,000 square feet, in new office space. Another 8 percent was forecast for retail sites. From 2014-19, the average
square footage of new construction added to the market yearly was about 1.3 million, with most in Benton County. During the five-year period, a total of 6.4 million square feet was added across all real estate sectors. Office and retail space each made up about 8 percent of that total, respectively, creating about three-quarters of a million in new square footage during that period. “I think a lot is internal, smaller, local businesses growing,” said Charles Laird, a licensed real estate broker for Tippett Co. in Pasco who focuses on commercial properties. “And the residential growth is kind of a twofold deal where you’ve got industry growing, the need for jobs. More