Commercial Real Estate Private investment dominates commercial picture, for now BY WENDY CULVERWELL
P
rivate investors are pouring hundreds of millions of dollars into Tri-City commercial construction in a shift from recent years, when school construction and public projects, such as Richland’s Duportail Street bridge and fire stations, dominated the sector. Fueled by low interest rates and a backlog of projects booked in the busy pre-pandemic days, privately funded development is overtaking those sponsored by government entities. The major private projects dotting the Mid-Columbia include industrial, neighborhood and 12
Tri-Cities Area Journal of Business
retail centers. Pasco is a regional hub of activity, but Kennewick, Richland and West Richland have their share too. “Residential can’t keep up. Commercial is looking at growth areas for future expansion,” said Joel Bouchey, regional director and public policy coordinator for Inland Northwest, the Kennewick-based chapter of Associated General Contractors of America.
Construction cycles Construction tends to occur in cycles, with public sector work such as schools, roads, water plants and fire stations filling the order books and then giving way to private. With Congress weigh-
ing a $1 trillion – or possibly more – infrastructure package, public sector work will return with a vengeance. The cycle is not as pronounced in the Tri-Cities, where construction – and demolition – at the Hanford nuclear site dampens the impact. But the $2+ billion annual Hanford budget does not completely tame the cycle. Beyond the secured expanse of the 580-square-mile reservation, contractors are digging in. Key projects that will keep the industry busy over the coming year are: • The first of two Amazon distribution centers, each with more than 1 million square feet,
