Friday, February 23, 2007

Downtown Vacancies Near Nil--What Next?

According to Colliers International market reports released this week, downtown Tacoma vacancies dipped significantly this quarter, bringing the vacancy rate down to 6.32 percent from 8.19 percent. Class 'A' vacancies have dropped to 3.55 percent. Fourth quarter absorption was recorded at 16,627 square feet, bringing the year-end absorption to 46,990 square feet.

Also last week came confirmation that the real estte needed to make the long-discused Haub Tower possible is coming on the market. Put the two items together and discover the next big piece in the downtown redevelopment puzzle...

1 comment:

  1. One of the largest barriers Tacoma continues to have for development of commercial space is the onerous and antiquated off-street requirement in the central business district.

    Right now, Tacoma requires new buildings to build a massive and expensive parking garage whether it will be used or not. Each space costs around $25,000 to build. Thus, this requirement adds millions to construction costs.

    Seattle, Portland, Bellingham, Olympia have removed this requirement and allow developers to decide how much parking they need.

    Thus, Tacoma is at a huge disadvantage in trying to attract any development downtown in comparison to other cities.

    The out dated parking requirement has also been found found to be a significant and illegitimate barrier to affordability of housing.

    Hopefully, the city will look at this policy very soon and correct the policy.

    I believe that the off-street parking requirement is likely the largest single error in the municipal code that is hampering our efforts to revitalize the downtown.

    (cross posted in part at Exit 133)

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