April 28, 2022 (Tacoma, WA) – On the market for the first time in decades are the Tacoma Super Block and the 12th & A Street property, two premier development sites in downtown Tacoma’s commercial core. John Bauder and Harrison Laird of Lee & Associates Commercial Real Estate Services have been retained to represent the owner in the disposition.
Known as the Tacoma Super Block, the larger of the two sites is nearly 2 acres and two full city blocks between S 13th & 14th Streets, from Pacific Avenue to A Street. Adjacent to Columbia Bank Center, the second site at 12th & A Street is just over ¾ of an acre. Together, the two lots allow for over 2.6 acres of high-profile, water-and-mountain-view, developable property in the core of the Financial District. Although currently used as parking for adjacent buildings, initial studies and plans indicate an ability to build nearly 1M square feet of office, retail, hospitality, and multifamily between the two properties. Their Downtown Commercial Core zoning allows a variety of uses and vertical development up to 400’.
Approximately $400,000 has gone into the design, planning, and pricing for a 250,000 SF office building on the Super Block with street level retail and underground parking. Additional feasibility studies have been completed for a hotel/apartment tower on the 12th & A Street property.
“The Super Block is, without a doubt, the preeminent site for a new office building in Tacoma. It’ll be interesting to see who ends up buying the sites and what types of development that will bring. With dozens of new multifamily projects around town and several new hotels, those cannot be ruled out as potential uses, either” said Laird, Principal at Lee & Associates.
Downtown Tacoma has seen a significant increase in office investment, office leasing activity, multifamily development, and property values.
Commercial building sales activity in the Tacoma submarket has drastically increased over the past 12 months. This increase included a significant spike in investment from investors located outside of the city. Regional and national investors represented the majority of these sales, a shift from prior years. According to CoStar, “sales volume in the downtown Tacoma submarket over the past 12 months sits at $123 million, compared to the five-year average of $42.3 million.”
Commercial leasing activity in the Tacoma and greater Puget Sound area is also rebounding significantly, topping pre-pandemic levels. With companies returning to the workplace and new leasing activity increasing, prospective investors for the properties will benefit from a surge in demand for commercial space. Laird notes, “Tacoma has a rapidly growing workforce, beautiful public spaces, a downtown with second-to-none views, world class higher education institutions, and (relatively) affordable housing. This creates a fertile ground for employers seeking talent.”
Downtown Tacoma and surrounding neighborhoods are also seeing heavy new multifamily and mixed-use development. Developer interest is piqued by several converging factors, including a shortage of housing stock; increasing rental rates; and Sound Transit’s Hilltop Light Rail Extension, which extends the current line into the popular Stadium and Hilltop districts, with planned openings beginning in 2023.
More information on the Tacoma Super Block sites can be found at tacomasuperblock.com.
ABOUT LEE & ASSOCIATES
Lee & Associates is a commercial real estate brokerage, management and appraisal services firm. Established in 1979, Lee & Associates has grown its service platform to include offices in the United States and Canada. Lee & Associates provides superior market intelligence in office, industrial, retail, investment and appraisal to meet the specialized needs of our clients. For the latest news from Lee & Associates, visit lee-associates.com or follow us on Facebook, LinkedIn, Twitter and Link, our company blog.