Home Finance Report: Boeing Leases More Than 700,000 SQFT of Industrial Space in Kent

Report: Boeing Leases More Than 700,000 SQFT of Industrial Space in Kent

Boeing, Kent Valley, Kent, CBRE, Puget Sound, Logisticenter at Pacific Gateway, Dermody Properties, Olympic Steamship Company, Davis Property & Investment, Seattle, Infinity Global Distribution, Tacoma Central Logistics, Toysmith, Tacoma

By Kate Snyder

Kent Valley’s industrial market has seen an increase in leasing activity recently. In the third quarter of 2023, Boeing took more than 700,000 square feet in two leasing deals in Kent, according to a third quarter report from CBRE. Data from the report shows that the aerospace company’s newest leases are part of a wider increase in the region’s leasing volume, ultimately leading to a positive absorption of 678,940 square feet in the third quarter.

“The Kent Valley remains the prime location in the Puget Sound industrial market with its central location giving direct access to major highways, both ports and the city of Seattle,” the report states.

Boeing moved into a total of 705,725 square feet of space, which breaks down into 402,667 square feet at buildings three and four of Logisticenter at Pacific Gateway and 390,150 square feet at the nearby 8220 S 212th St., according to the report. 

Dermody Properties owns both properties. According to the firm’s website, LogistiCenter at Pacific Gateway is part of a planned, five-building warehouse and distribution property totaling 771,882 square feet of logistics space that is designed to serve the greater Pacific Northwest. 

Separately, Dermody purchased the 8220 S 212th building in 2021 for $62 million, or about $208 per square foot, according to previous reporting from The Registry. The seller was Olympic Steamship Company.

The Kent Valley is positioned halfway between the Port of Seattle and Port of Tacoma with access to SeaTac International Airport, I-5 and I-90 via SR-167 or SR-18. Major industries within the area include aerospace, food and beverage, third-party logistics and internet fulfillment. Within a 15-minute commute of Pacific Gateway, there are 21,000 residents, or 11.5 percent of the employed population, working in transportation and material moving occupations, according to the website for LogistiCenter at Pacific Gateway.

The Puget Sound region has seen a number of industrial leases throughout the area in recent months.

Earlier this year, Kent-based Davis Property & Investment announced the signing of two major leases for their new industrial developments in South Sound. The two developments boast a combined area of over 400,000 square feet. One of the companies stepping into this space is Seattle-based Infinity Global Distribution, which decided to lease 248,000 square feet at Tacoma Central Logistics property at 1950 S. State St. The second lease was for Toysmith, a Tacoma-based toy seller, at the 160,000 square foot Pacific 167 building located at 541 W. Valley Highway S. in Pacific.