Construction is currently underway in Woodinville with a brand-new warehouse project at 15902 Woodinville Redmond Rd. located in the West Valley winery district.
Panattoni Development has broke ground on a new development for the first time since the recession. This too building project will feature over 200,000 ft.² at a cost of about $25 million. Construction is scheduled to be completed in July, 2017. Currently, the space has yet to be rented but due to its location, a distillery, winery or brewery would be the logical use. NAI Puget Sound Properties is marketing the space to various companies including this type of industry. Currently, interest has been from outside the traditional user. The majority of companies that use these types of spaces on the inside typically perform some light manufacturing and product distribution. Industrial space is at a premium on the Eastside were only about 2.7% of inventory is currently vacant. This shortage has caused the warehouse rental rates to rise dramatically.
Panattoni Development is set to be asking around $.70 per square foot a month for this warehouse space and an additional $1.40 per square foot a month for office space. This is approximately 11% higher than the average rents on the east side. Even though rents are rising, new space is limited and due to the lack of land, new developments have not been constructed for several years. This new project is one of the last large pieces of industrial land left to build and develop on the Eastside.