By Meghan Hall
An Issaquah retail center has traded hands as the sector continues to pick back up. In a deal that was finalized last week, the Pickering Place Retail Center sold for $14.5 million, or about $442 per square foot. Both the buyer and seller were local private investors, according to public documents. The buyer of the property was Lemond Investment Corp. affiliated with private investors from Auburn, Wash. The seller was a party affiliated with 12707 Southwest Freeway LP, based in Texas.
The property is located at 1475 11th Ave. NW. The single-story complex was originally built in 1997 and totals 32,779 square feet, based on a marketing listing for the property. The asset is described as a “stable, cash flowing opportunity surrounded by Costco’s Corporate headquarters and Issaquah’s retail core.”
The property sits on just under 2.5 acres, allowing for redevelopment in the future. Currently, the property is occupied by Big Lots.
Pickering Place is located adjacent to a Lowe’s Home Improvement and is just across Interstate 90 from a Target-anchored shopping center known as Issaquah Commons. Other nearby retailers include Trader Joe’s, REI, Fred Meyer and The Home Depot.
Retail has begun to recover from its pandemic-related losses, but headwinds remain. Supply chain disruptions, inflation and the Omicron wave all remained concerns at the end of the year. Additionally, according to recent data from Kidder Mathews, urban core daytime employment is still “well below” pre-pandemic levels.
During the fourth quarter, retail vacancy in the Puget Sound did decrease, lowering overall to 2.69 percent. Rents are still projected to rise about 4.2 percent throughout 2022 before moderating in 2023, thanks to increasing demand. While the beginning of 2021 was slow for retail leasing, the year ended with positive absorption of more than 1.14 million square feet.