Over the course of the year, the Puget Sound has seen a significant increase in investment activity, recording numerous transactions in the first half of the year. In a recent transaction that closed this month, Palm Beach, Florida-based investment group Sterling Organization acquired the Lakewood Diamond Plaza, a fully occupied shopping center. Property records show that the property was previously owned by West & Wheeler, which sold the asset for $17.7 million.
The property consists of several buildings, located at 10901, 11011, 11013 & 11021 Pacific Highway in Lakewood. According to MaKensay Real Estate Services, which manages leasing at the property, the Lakewood Diamond Plaza is currently occupied by tenants like O’Reilly Auto Parts, Grocery Outlet, Lee’s Fashions and more.
Located just south of Tacoma in the community of Lakewood, the property is conveniently located along the Pacific Coast Highway and near Interstate 5. The property is also within close proximity to a number of other retail assets, with nearby tenants including The Home Depot, Honda, Target and more.
Overall, the area has been subject to a large number of retail transactions over the past several months. According to a first quarter market report from Kidder Mathews, investment activity has significantly picked up, reporting 114 retail sales over $1 million. At the same time, net absorption is up at slightly over 1 million square feet. Vacancy rates across the Puget Sound region also remain relatively low, with Pierce County showing a decrease of six basis points to 2.8 percent.
With the increase in activity, rental rates are also expected to see continued growth moving forward. According to the report, rental rates increased about 2.4 percent year-over-year, and are likely to continue increasing over the next several years, with a 3.7 percent rental growth rate anticipated in 2022 alone.
