Acquired by PS Business Parks (NYSE: PSB) in July 2012, 212 Business Park is a one million square foot industrial park in the heart of the Kent Valley. At the time of acquisition, the park was 50% vacant. 212 Business Park has a superior location and largely functional site configuration and buildings. However, it suffered from several deficiencies, including relatively low clear heights, limited sprinkler capacity, abandoned rail spurs, limited grade level doors and traffic circulation options, and 25% of the vacancy in an unsightly single-tenant building with poor loading.
The team created an ambitious plan to redevelop 212 Business Park into a premier location for small-to-medium-sized industrial users in the Kent Valley. PS Business Parks’ core strategy centers on well-located, multi-tenant industrial, flex, and office parks. The concept of “dividing and conquering” large vacancies had been done with much success in the recent past, but applying the concept over one-half million square feet of industrial vacancy was ambitious. With the combination of market research and direct experience achieving higher rates, lower transaction costs, and faster absorption with smaller spaces, it was determined that this was the best strategy for 212. This strategy would additionally minimize the impact of the clear height and sprinkler capacity challenges.
Prior to substantial completion of construction, 30% of the vacancy was pre-leased. Since then the park has maintained occupancy in the mid to upper 90% range with shell rents 76% greater than at the time of the acquisition.
PSB thrives with these types of acquisitions because we can draw upon the dozens of case studies throughout our national portfolio. Based on all of these experiences, we know that consistent strategy execution will yield success. This consistency allows our aggressive, hands-on, and onsite customer-centric leasing and management team to create a vibrant business park where customers can focus on their business while we focus on them.
For more information about 212 Business Park and our presence in the Seattle market, please visit the Seattle Market page here.