By Kate Snyder
Redmond’s industrial market could soon see an increase in interest from investors. A development site located on the city’s east side has been listed for sale, according to a marketing brochure from CBRE, which has the listing. The property, known as Redmond North, is about 9.1 acres and is owned by HM Pacific Northwest, Inc., an affiliate of Heidelberg Materials. Pricing guidance was not available.
CBRE’s Tom Pehl, Charles Safley, Chais Lowell, Paige Morgan and Brett Hartzell are the brokers for the property. Heidelberg Materials is a supplier of cement, aggregates, ready mixed concrete and asphalt with more than 450 locations and approximately 9,000 employees, according to the firm’s website.
Located at 18816 NE Union Hill Road, the property is located less than one mile from Washington 520, along Union Hill Road, which provides access to the entire Eastside region. The site’s current operations include a maintenance shop, retail sales building and landscape material storage. According to the brochure, the property’s existing structures could be repurposed or redeveloped for a variety of industrial uses including manufacturing, research and development or laboratory, transportation and logistics uses.
Redmond North is located in the Eastside’s technology center. Nearby businesses include offices from Microsoft, Amazon, Google, Oculus and T-Mobile. Parcels adjacent to the site are owned by the City of Redmond, Microsoft and Heidelberg Materials, according to the brochure.
“The Seattle industrial market is a Tier 1 global investment market which is experiencing extraordinarily low vacancy rates and strong rent growth,” the brochure states.
At 0.6 percent, Redmond has the lowest industrial vacancy rate throughout the Eastside submarkets and the Puget Sound region, marketing information shows. Tenant demand in the Redmond submarket has created a net absorption of 133,000 square feet in the past 12 months, from both satellite-related companies and tech companies. Land supply for new construction in the Puget Sound region’s industrial submarkets has been limited. Likewise, availability of larger sites in the Eastside has also been limited, due in part to zoning, the existence of a built environment and demand from tenants and corporate owners.
According to The Registry’s previous reporting, while the industrial market throughout the country appears to be hitting record occupancy, industry experts believe the sector may be stabilizing. Major industrial real estate players saw high occupancy rates and increased revenues at the start of 2023, but a flood of new supply and financial concerns are causing some to predict a stabilization period. With an estimated 663 million square feet under construction nationally, executives are warning of increasing vacancy rates as new supply is delivered.
