J U LY 2017
TH UR STON C OUN TY C H AMBE R OF C OMME R C E
The Olympia Symphony
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On page 9, meet the Olympia Symphony Orchestra's Executive Director, Jennifer Hermann
On page 12, learn about a warehouse in Tumwater that is becoming the newest craft brewing and specialty foods destination. On page 16, learn about the State of Real Estate in Thurston County.
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Featuring...
CONTENT & CALENDAR
Every month, the Thurston County Chamber offers several networking events, forums & workshops to the community. Here are some highlights you won't want to miss.
In this issue...
6 Executive Update
July 6
YPN-Indian Summer Golf & Country Club The Thurston Chamber Young Professionals Network (YPN) is a great place to interact with younger business professionals in a low-pressure environment. Join us for after hours on July 6 at 5:30 p.m. at Indian Summer Golf & Country Club.
July 12 2
Q&A with ODA's Todd Cutts
9 Olympia Symphony Learn about the Olympia Symphony Orchestra & 65 Years of the Arts in Thurston County
Forum: Public Policy JJoin us for the Thurston Chamber's Monthly Forum Luncheon on Wednesday, July 12 at the Hotel RL Olympia. Our topic this month is Public Policy.
Beer, Bread & Speciality Foods
Learn more at www.thurstonchamber.com
July 20
12
BAH at New Traditions Fair Trade Join us for Business After Hours at New Traditions Fair Trade on Thursday, July 20 at 5:30 p.m. Enjoy drinks, appetizers and the
There is a new artisan food movement happening in an unexpected place
chance to learn more about this business under new ownership.
16
Traditions is located at 300 5th Ave. SW, Olympia.
Real Estate
Olympia Brew Fest August 5
JJoin us for the fifth annual Olympia Brew Fest, benefiting the Thurston County Chamber Foundation's Small Business Incubator. You can help out your community by enjoying
Read the State of Real Estate Report to learn what's hot and what's not in Thurston County
beers from 30+ hand-picked, Northwest breweries. Come and
20
celebrate Olympia’s fine brewing heritage!
Sept. 8
Foofaraw
Growth in Grand Mound
On Friday, September 8 the Thurston County Chamber and the Olympia Yacht Club will host over 250 active duty military men and women at Island Home, a private island owned by the Olympia Yacht Club. Foofaraw is a day of fun and games as well as a traditional salmon BBQ.
For more event information, please visit www.thurstonchamber.com
www.thurstonchamber.com
There is a lot of economic activity happening in Grand Mound. Learn about the latest proposed development here
Thurston County Chamber VOICE July 2017 3
building awareness, engagement and insight By Doug Mah, Doug Mah & Associates
PUBLISHER Thurston County Chamber of Commerce
EDITORIAL Editor: David Schaffert Phone: (360) 357-3362 Email: dschaffert@thurstonchamber.com
& Director, Thurston Chamber Public Policy Division
S
ince 1874, the Thurston County
advocacy for significant, game changing,
Chamber’s mission has remained
projects, and initiatives. We will have a more
constant: growing a prosperous economy
coordinated effort to provide meaningful
and vibrant community by connecting people,
input and guidance around revised ordinances
CONTRIBUTORS
ideas, and resources. The work of the Public
and rules that impact your business. You can
David Schaffert
Policy Division is central to this mission.
expect improved opportunities to voice your
Doug Mah Natasha Ashenhurst Greg Raines
The Chamber increased resources to the Public
Rebekah Finn
Policy Division less than one year ago. In this
Heather Harris
short time, we launched a more coordinated
ADVERTISING Sales and Marketing:
and aggressive work plan to better address emerging land-use and permitting issues. The
Beth Johnson
division collaborated with local government
Blake Knoblauch
and advocated increasing state and federal
Melanie Bell
resources for regional projects. The division
Phone: (360) 357-3362 Email: info@thurstonchamber.com
SUBSCRIPTIONS Phone: (360) 357-3362 Email: info@thurstonchamber.com
convened the Thurston County Legislative Delegation to work across party lines for the betterment of the entire region and not just an individual legislative district. The Public Policy Division also started taking
Mosaic Marketing Studio
advantage of cloud-based survey tools to gather insights on member perspectives
Jennifer Hermann, Executive Director
concerning Downtown Olympia and how
of the Olympia Symphony Orchestra.
to best provide members with meaningful
Photo by Heather Harris, Elements
information on local political candidates and
Photography.
ballot measures. We will continue to use these tools to illustrate priorities and demonstrate
PRINTING
awareness to decision makers.
Print NW
additional information and access to local political candidates as they seek your vote in this year’s elections. Public policy is determined by those that participate and share their experiences, ideas, and insights as decisions are made. Participation by Chamber members will ensure that we are building awareness, engagement, and insight in our community that best reflect
The Public Policy Division works on behalf of the Chamber membership to remind decision makers about the needs, abilities, and the capacity of the private sector to help create vibrant communities. It is our shared interest and it is central to being a member of the Thurston Chamber. Please plan to join us at the July Chamber
CONTACT THE CHAMBER
In the months ahead, Chamber members
PO Box 1427
can expect to see increased awareness and
809 Legion Way SE
public policy decisions. And, there will be
our values and entrepreneurial work ethic.
DESIGN
COVER ART
opinions and provide input on important
Forum, where the program will be an engaging overview of our advocacy work and the public policy division. ●
Olympia, WA 98507 Phone: (360) 357-3362 Website: www.thurstonchamber.com
THANK YOU TO OUR COMMUNITY INVESTORS
COPYRIGHT
DIAMOND INVESTORS:
Email: info@thurstonchamber.com
All material appearing in the VOICE Magazine is copyright unless otherwise stated or it may rest with the provider of the supplied material. The VOICE Magazine takes all care to ensure information is correct at time of printing, but the publisher accepts no responsibility or liability for the accuracy of any information contained in the text or advertisements.
Anchor Bank Capital Medical Center Heritage Bank Phillips Burgess Port of Olympia Conduit
PLATINUM INVESTORS America's Credit Union - Lacey Lucky Eagle Casino & Hotel Mills & Mills Funeral Home & Memorial Park Morningside
4 • July 2017 Thurston County Chamber VOICE
Olympia Federal Savings Olympia Orthopaedic Associates Print NW Providence St. Peters Saint Martin's University TwinStar Credit Union Washington Business Bank
GOLD INVESTORS First Citizens Bank Cabinets by Trivonna Columbia Bank The Creative Office GHB Insurance Great Wolf Lodge Hometown Property Management Jessica Jensen Law PS
Nicholson & Associates Nisqually Red Wind Casino Olympia Furniture Company Pardiman Productions Puget Sound Energy RHD Enterprises Hotel RL Olympia Saint Martin’s University SCJ Alliance TAGS Wells Fargo
www.thurstonchamber.com
EXECUTIVE MOVES
Q&A with the ODA's Executive Director, Todd Cutts Directors retreat to develop a strategic plan for the organization. This strategic plan includes organizational vision, mission, values and goals. The goals for the organization moving forward are: •
Todd Cutts, Executive Director of the Olympia Downtown Association.
government. •
T
odd Cutts assumed the role of Executive Director of the Olympia Downtown Association (ODA) in March, 2017.
Clean and Safe-Establish a solid foundation to ensure business success and a thriving downtown.
•
Imagemaking-Improve the community’s perception of downtown while making them aware of all that it offers.
•
Business Assistance-Leverage community partnerships to provide tools to help our small businesses succeed.
We asked Todd to tell us about his first few months in
his new role.
Advocacy-Channel the voice of the downtown business community to compel action in both local and state
•
Financial Health-Ensure diversified funding sources and efficient business practices that lead to long-term
Q: When you began your new role as ODA's Executive Director you and the board set out goals for the organization. What were those goals and have they changed at all since you've been in the position?
organizational fiscal solvency.
Q: Have your impressions of Olympia changed since you took over the role? A: Not really. I love Downtown Olympia! It offers a unique
A: Since I started the job in March, I have interviewed over 70
local flavor that blends a certain contemporary quirkiness with
downtown stakeholders in order to understand the strengths
historic charm. It really is the heart of the region.
and challenges in Downtown. Any downtown comes with its share of challenges, our job at the On May 25, the Olympia Downtown Association held five
Olympia Downtown Association is to understand and work to
stakeholder focus groups to deepen our understanding of how
address those challenges.
we could best provide value to the Downtown community. We’ve plotted our course and now we’re excited to roll up our All of this information, in addition to recent surveys conducted
sleeves and play a leadership role in the downtown landscape. ●
in the downtown, were used during our June 8 Board of
www.thurstonchamber.com
Thurston County Chamber VOICE July 2017 5
Caught in the Lens...
6 • July 2017 Thurston County Chamber VOICE
A collection of photos taken at Chamber events during June 2017. Visit our Facebook page for more photos!
www.thurstonchamber.com
OLYMPIA BREW FEST 2017 Saturday, August 5, 1:00 p.m. - 8:30 p.m. • • • • •
30 + Breweries Live Music Food Vendors $25 advance purchase tickets $30 at the door
OLYMPIA BREW FEST %HQHȴWV
Visit olybrewfest.com for more information www.thurstonchamber.com
Thurston County Chamber VOICE July 2017 7
Saturday, November 4 Saint Martin’s University Lacey, Washington A black-tie gourmet affair with H SP]L H\J[PVU ILULÄ[PUN student scholarships. This year’s theme is China, featuring award-winning chef
Ming Tsai Reserve your table at www.stmartin.edu/GalaChina2017 or call 360-438-4366.
“For a community of our size, I think it’s incredible the proportion of professional artists and creative people that actually live here. We don’t have to import them from bigger cities. And we’re very proud of that,” explains Hermann. While the orchestra is made up of high-caliber professional musicians, they are also very active community members. A large portion of them are local school teachers, teaching music in the community.” -Jennifer Hermann
Olympia Symphony Orchestra: Enriching, Educating, and Entertaining for over 65 Years By Rebekah Finn
The business community has supported the Olympia Symphony since the beginning.
D
id you know that Olympia has had its very own professional symphony for over 65 years?
I didn’t either until I had the opportunity to speak with
like Yenney Music. Other
Olympia Symphony Orchestra’s Executive Director, Jennifer
current business sponsors
Hermann. In fact, the Olympia Symphony Orchestra gave their
include Thurston First Bank,
first concert in 1947 before incorporating in 1952. “We’re not
Fairchild Record Search,
the oldest art organization in Olympia, but we’re one of the
Diamond Technologies,
oldest,” explains Hermann.
Columbia Bank, Olympia Federal Savings, and Olympic
The local business community has supported the Olympia
Dermatology and Laser Clinic,
Symphony since the beginning, with advertising supporters
just to name a few. With ticket
Continued on page 10 www.thurstonchamber.com
Thurston County Chamber VOICE July 2017 9
Continued from page 9
The Olympia Symphony Orchestra on stage at The Washington Center for the Performing Arts. sales only covering about 30 percent of
partnerships, one of the most significant
the Symphony’s operating costs, these
ways the Olympia Symphony gives back
After volunteering and serving in
other sources of income are essential.
to the local community is through their
various capacities, including librarian
employment of local musicians.
and personnel manager, the board
In addition to sponsoring concerts,
hired Hermann as executive director
musicians, guest artists and advertising
“For a community our size, I think it’s
in October 2016. Hermann’s genuine
in the concert Playbills, local businesses
incredible the proportion of professional
excitement for her new role is very
can partner with the Symphony in other
artists and creative people that actually
apparent.
ways. One example of an innovative
live here. We don’t have to import them
partnership is Bittersweet Chocolates,
from bigger cities. And we’re very proud
“This is a really good merging of all of
which isn’t usually open on Sundays,
of that,” explains Hermann. While the
my loves. I love classical music, I love
deciding to open their shop on the days
orchestra is made up of high-caliber
the orchestral experience, and I’m an
of the Symphony concerts. Olympia
professional musicians, they are also
educator. And as an executive director,
Symphony Orchestra performs concerts
very active community members.
I get to educate the community. It’s not
at the Washington Center and the
“A large portion of them are local
within the walls of a classroom, it’s
Bittersweet Chocolates’ storefront is
school teachers, teaching music in the
within our city, and even beyond.”
right across the street. In 2016 February,
community.”
Bittersweet donated some chocolates to
Along with her fellow part-time staff
a Symphony Valentine’s Day raffle, and
Hermann herself is a teacher, teaching
members and the Symphony’s board of
Hermann recalls audience members
music theory, piano, and music history
directors, Hermann is looking forward
forming a line out the door at the
at South Puget Sound Community
to their 65th anniversary season, which
chocolate shop after the concert.
College (SPSCC) for 10 years. A pianist,
will begin this fall and include some
Hermann has always been involved
very big pieces of music from across the
That was a light bulb moment for
with local community ensembles, like
globe. Not only are they “thinking big”
Hermann: “I thought, ‘This is how it
the youth orchestra and the youth choir,
for their concert music, they are also
works!’ We can provide customers for
and frequently performs around town
thinking big in terms of innovative ways
downtown merchants, and hopefully, we
in small groups. In 2015, she was the
to enrich, educate and entertain the local
can increase the list of things to do on a
guest artist for the Olympia Symphony
community.
Sunday night.”
Orchestra’s performance of Mozart’s Piano Concerto No. 24.
Hermann hopes that future partnerships
One way they are innovating is by starting a program where volunteers
will also include providing live chamber
Hermann’s gratitude is unmistakable:
will escort concert-goers to and from
music for different events at downtown
“It’s not an opportunity that comes up
their vehicles, giving that extra feeling of
businesses, especially those with
very often, and it was the first time I
security, especially for those patrons who
wonderful open spaces perfect for a
had ever done anything like that. For
may have trouble getting around. Since
small ensemble of musicians. “We can
me to be able to do that—perform with
most of the Symphony’s programs are
break off into small groups and bring a
an orchestra in my own town, with my
in the evening during the dark winter
taste of what we do into different places
community—was really very special.
months, they are also experimenting
to people who are already downtown.”
And after that experience, I just knew I
with a matinee schedule to take
In addition to all these local
had to do more with the symphony.”
advantage of those short daylight hours.
10 • July 2017 Thurston County Chamber VOICE
www.thurstonchamber.com
We have been inspecting homes and commercial facilities for 13 years.
We provide service in Thurston, Mason, Lewis, and Pierce Counties.
In addition to her role as Executive Director of the Olympia Symphony Orchestra, Hermann teaches music theory, piano and music history at South Puget Sound Community College.
Available 7 Days a Week 360.480.9602 │ boggsinspect.com
“We want to not only present quality music, which we do a good job of, but we also want to present quality experiences for our community and do what we can to reduce those barriers,” says Hermann. While she believes wholeheartedly in the value that orchestral music brings to the community, she understands that others may not get it until they experience it for themselves. I can personally attest that the experience is worth it, as I recall a simultaneously relaxing and energizing experience when I attended Hermann’s guest artist concert with the Symphony in 2015. She describes so well what I experienced that night, and what I hope everyone in our community will get to experience at some point: “I sit in the audience, and I’m watching the musicians, and I’m watching how they breathe and move with the conductor, which is what they’re trained to do and what they’re paid to do. But I’m watching out of the corner of my eye, and without realizing it, the audience is doing the same thing. I notice when the conductor puts his arms up, and everybody stops and there’s this corporate pause, and then we breathe together. It gives me chills when I think about it. As a community, and especially the way the world is right now, physically being in a space together and breathing together, and moving in your chair together— that is something that you just can’t create on your own.” ●
Rebekah Finn is a freelance writer for the VOICE Magazine. You can contact her by emailing finncommoly@gmail.com
www.thurstonchamber.com
Thurston County Chamber VOICE July 2017 11
The tasting room at Matchless Brewing is located at 8036 River Dr. SE #208,Tumwater. The three-building light industrial warehouse space is known as Deschutes Landing and is home to 8 Arms Bakery, Matchless Brewing, Triceratops Brewing and Ila's Foods, along with other tenants.
Tumwater’s Deschutes Landing: a Craft Beer, Bakery & Specialty Foods Destination Written by Natasha Ashenhurst. Photos by Greg Raines of Lionsdenpro
Three warehouses make up the Deschutes Landing Industrial Park, home to 8 Arms Bakery, Matchless Brewing, Ila's Foods and Triceratops Brewing, along with other tenants.
U
nexpected. That is the word that comes to mind when I drove out old Hwy 99, near the Olympia Airport in Tumwater, looking for a light industrial area that is now home to South Thurston County's newest craft beer, bakery and specialty foods destination. Unexpected is also the word that comes to mind when I met
As we sat and sipped beer, I
the leaders of these businesses—one is a former firefighter
learned how each business
from New Jersey, one is a former postman and two are former
got started, why they love
school teachers.
Deschutes and why their fans don’t hesitate to make
Three warehouses—one red, one blue and one green—make
the drive to visit them in
up the Deschutes Landing Industrial Park, and this is where
Tumwater.
I interviewed Jen Ownbey, owner of 8 Arms Bakery, Patrick Jansen, founder and brewmaster of Matchless Brewing, Debra Kilcup, owner of Ila's (eye-luh’s) Foods and Rob Horn Jr., owner of Triceratops Brewing.
12 • July 2017 Thurston County Chamber VOICE
The Cast of Characters: 8 Arms Bakery – Jen Ownbey www.thurstonchamber.com
Inside 8 Arms Bakery, owned and operated by Jen Ownbey. 8 Arms is a community supported bakery, getting ready to celebrate their 10th Anniversary in September. In 2007, Jen started 8 Arms Bakery in
Two refrigerators are full of carefully
producing beer at Deschutes in March
the 200 square foot garage behind her
wrapped goodies and employees from
2016 and in November sold their first
Westside Olympia home. She was a
nearby Allafia were buying their lunch
beer. They outgrew their first space at
classroom teacher and started the bakery
while I was there. Jen has cultivated
Deschutes and moved to the space next
as a way to try something new and use
exceptional relationships with her
door. Today, they are brewing IPAs, Pale
her natural talent and creativity.
customers and continued growth is on
Ales, Lagers, Saisons a Stout and a Brett
the horizon. In September, 8 Arms will
beer. Fans of Matchless Beers don’t have
celebrate their 10th anniversary.
to search for a bar who carries the name,
8 Arms is not your typical bakery—it is a community-supported bakery, which
though there are plenty, they can head
agriculture, offering members a chance
Matchless Brewing – Patrick Jansen & Grant Bolt
to buy into a share session. Jen moved
Patrick “Pat” Jansen has had quite a few
Ila’s Foods – Debra Kilcup
into her space at Deschutes two years
careers, including a stint as a postman
Debra was a school teacher in the North
ago, when there were a lot of vacant
in West Olympia. In fact, delivering mail
Thurston Public School District for many
spaces around her. The larger space
to Jen at her Westside home was how he
years until illness slowed her down. She
allowed her to hire help and sell directly
got to know her. Pat says that Jen was
missed teaching and working, so one day
from the bakery a few days a week.
an inspiration for him to one day start
she started making some of her mother’s
either his own brewery or sourdough
recipes, including salad dressings and
bread bakery.
jams. She took the blue cheese dressing
is similar to community-supported
In the back of the space is the kitchen where Jen and her team turn out delicious smelling breads, pastries and sandwiches, and visitors can buy items on display in the front of the shop. They sell traditional and gluten-free products made from organic ingredients and sells to stores, restaurants and cafes in Olympia and as far away as Port Angeles.
www.thurstonchamber.com
Pat eventually moved on to make a name for himself in the brewing world as brewmaster for Three Magnets Brewing
on out to the Matchless tasting room.
to a street fair in Hoodsport and it sold out right away. What was a hobby quickly turned into a viable business.
Co., owned by Nate and Sara Reilly.
In 2009, she started selling her specialty
Patrick likes to joke that Nate was the
dressings, mustards and jams wholesale
first one to buy the toys for the rest of
and through the Ila’s Food website. When
them to play with. Pat, along with Grant
she outgrew a kitchen she was renting,
Bolt, President of Matchless, started
she began looking for a larger space,
Thurston County Chamber VOICE July 2017 13
Continued from page 13
MEMBER PROFILE
OCCU's new branch in the Steamboat Island Community
Our Community Credit Union (OCCU)
O
ur Community Credit Union (OCCU) based in Shelton, recently joined the Thurston County Chamber this year when they secured branch space in the Steamboat Island Community. Plans to open their eighth full service branch, complete with drive through and 24-hour drive up ATM will take place in Steamboat Square in late October 2017. OCCU’s history is rich with a logging background. In 1941, Simpson Logging Company employees created the Simpson Employees Federal Credit Union (now OCCU). Hence, their branches are dotted along the timber parcels of Mason and East Grays Harbor County. OCCU opened up membership in 2010 to anyone living or working in Washington State. Over OCCU’s 75-year legacy, they have created a long menu of affordable and convenient personal financial products and services including Mortgage, Business and Investment services. OCCU has 29,000 members, $359 million in assets and operates branches in Shelton, Union, McCleary, Elma, Montesano and on Vashon Island. ●
Learn more about Our Community Credit Union (OCCU) www.ourcu.com SPONSORED MEMBER PROFILE
14 • July 2017 Thurston County Chamber VOICE
Top Photo: Debra Kilcup, owner of Ila's Foods. Bottom: Triceratops Brewing.
which was how she found Deschutes. “I’ve been here since January. This is a very special place. We are neighbors and we lean on each other. It is so good to be able to go next door and have [Rob, Pat or Jen] taste something. We are a family and a community,” she said.
Triceratops Brewing Company – Robert Horn, Jr. Rob Horn, a former firefighter from New Jersey, moved to Olympia over a decade ago, triggering his obsession with the craft brewing scene. Rob and his wife started brewing in their garage, ironically located only five blocks from Jen’s home, and sold their first beer in June 2014. “I started selling beer as a way to pay for our three kids to attend the Waldorf School,” said Rob. Eventually, he made the decision to use their savings to go into brewing full time. They moved into their space at Deschutes Landing in February and had their grand opening in June. Jen supplied the bagels, Debra supplied mustard and Pat made sure Matchless regulars attended the Triceratops opening. It was
www.thurstonchamber.com
Top photo from left to right, Rob Horn, Pat Jansen and Jen Ownbey. Lower photos from left to right: Inside Matchless Brewing, 8 Arms Bakery and Triceratops. a tremendous success.
moving in I received an email asking us what we needed and how the City could make the process better. Everyone down the
Triceratops, like Matchless, has a tasting room and in addition to
line has been supportive,” said Rob.
their beer, both serve Whitewood Cider, owned by their mutual friend, Dave White. “There isn’t a tasting room in Thurston
They also agree that while a light industrial area is an
County that doesn’t have the Whitewood red tap handle,” said
unexpected place for craft brewing tasting rooms, a bakery and
Rob.
food kitchens, it is also a growing trend nationally.
Jen, Pat, Debra and Rob each agree that the City of Tumwater
“We’ve seen the same set-up in San Diego and in Seattle,” said
has been extremely helpful as they’ve learned about what it
Jen. “We are all interested in making this a destination.” ●
takes to do business in the area. “As soon as they heard we were
www.thurstonchamber.com
Thurston County Chamber VOICE July 2017 15
This new retail space, called Harrison West, is home to Spruce Skin & Wax Shoppe, Blue Heron Bakery, Don Juan's Mexican Kitchen, Kneaded Relief, Vanquaethem Family Chiropractic and Industrie Clothiers. The shops are located at 4419 Harrison. Down the street are vacant medical office spaces. Medical spaces are hard to fill with other businesses because of zoning and renovation challenges.
the state of real estate report
T
By Natasha Ashenhurst, Photos by AVO Photography
he Olympia-Lacey-Tumwater metro area is one of the fastest growing regions in the state as well as the nation, according to data released by the U.S. Census bureau. What does this mean for the business of real estate in Thurston County? To find out, we spoke with four real estate professionals. What we learned is that the residential market is a good news story, but the commercial market is complex and is experiencing both good and stagnant sales. Residential Real Estate
“There is still sanity in
According to Ken Anderson, owner of Coldwell Banker Evergreen Olympic Realty, Inc., there is
our market. A big chunk
plenty to be happy about—finally—for sellers and buyers in the residential market.
of our buyers come from the Seattle metro area and
For sellers, higher prices have returned and there are a lot of buyers.
they think they have to do those things—like skip the
“Pent up demand generated by the economic downturn is becoming unleashed. Buyers are feeling
inspection—they don’t,”
good and are coming back,” Anderson said.
Anderson said.
He disagrees with the common misconception that there is low standing inventory, but rather the
Anderson is concerned
area is seeing a seven-year inventory high. However, while there is a large amount of inventory,
about two things in the
it is moving very quickly so buyers have to be ready to jump when they see something they like.
residential market. First,
He does caution that buyers should not skip important steps, like the inspection that we hear is
during the recession many
happening in the Seattle market. 16 • July 2017 Thurston County Chamber VOICE
www.thurstonchamber.com
New commercial real estate is under construction throughout Thurston County. “New is full and old is vacant," Zach Kosturos.
developers stopped building. The result is that we are experiencing a supply problem. Currently, there is not enough new construction in the pipeline to fill the demand experts anticipate as the region’s population continues to grow. This problem leads to his second concern—price. “We need to keep an eye on affordability. We are among the most affordable community on the Puget Sound. Workers can afford to buy a house here. That is
Landlords willing to spend money on tenant improvements, invest in a full or partial remodel and keep up curb appeal are attracting tenants. We are seeing people flipflop from one building to another, looking for a nicer space for the same terms. -Zach Kosturos
not the case in Seattle,” he said.
to 25,000 square foot range,” she said. And while warehouse leasing is soaring, medical space is struggling. “The smaller scale offices, especially on the Westside and Lilly Road areas have high vacancy rates. We believe the reason for this is a lot of doctors coming out of medical school go and work in the larger provider systems, so that leaves a lot of the small practice spaces available. They are hard to fill with other businesses because many of
we take a look at all of the contributing
them are zoned for medical use only,”
Andrew Barkis, property manager
factors to the current housing supply
she said. Plus, she added that medical
and owner of Hometown Properties
problem, including zoning, regulation,
spaces contain special plumbing and
and Washington State representative
the cost to develop new land as well as
equipment, making them expensive to
for the 2nd Legislative District, is also
the growth management act.
renovate.
the lack of affordable housing. He said,
Commercial Real Estate
Zach Kosturos, president and designated
“The Thurston County rental market’s
The commercial real estate market
broker at Prime Locations, agrees with
inventory is as low as I’ve ever seen it,
as a whole has made slow but steady
Rant’s appraisal of the medical real
which means that rents are going up.
progress to post recession recovery,
estate market, with one caveat. “New
This is great if you are an investor, but
especially in investment sales, according
is full and old is vacant. Landlords
difficult if you are looking for a house to
to Danielle Rants, broker and property
willing to spend money on tenant
rent.”
manager at The Rants Group.
improvements, invest in a full or partial
concerned about the lack of housing and
Barkis, in his work at Hometown as well as his work as a state representative, believes the solution will come when
“Warehouse industrial leasing is doing the best and a big reason for that is the marijuana industry has leased up the larger warehouse spaces—in the 15,000
remodel and keep up curb appeal are attracting tenants. We are seeing people flip-flop from one building to another, looking for a nicer space for the same
Continued on page 19 www.thurstonchamber.com
Thurston County Chamber VOICE July 2017 17
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18 • July 2017 Thurston County Chamber VOICE
www.thurstonchamber.com
Continued from page 17 terms. Look at MJR Development, for example. They are attracting tenants because they are rolling out the red carpet,” he said. The other disruption to the commercial real estate market is the changing nature of retail. As more and more people do their shopping online, retail is struggling. Rants gives the example of Sports Authority going out of business and large retailers like Walmart starting to reduce their footprint. Retailers who sell through a hybrid of online and traditional brick and mortar stores, which experts refer to as "omnichannel," still need storefronts, but not as large or may need a small storefront and a warehouse space somewhere else. Kosturos said, “The retail market will change drastically over
Franklin Lofts, Thurston First Bank and Three Magnets Brewing Co. are an example of taking old, unused office space and transforming it into market-rate housing and retail space downtown Olympia. Photo by Avo Photography. office space into other uses.
the next five to 10 years. We may buy more and more goods online, but people will still go to nail salons and restaurants.
Ken Anderson said, “We’re working with Walker John to convert
People still want to walk around downtown and check out the
office space to residential. Fortunately, most of our zonings
shops. It is a hobby and provides a unique experience you can’t
allow for mixed use. The Thurston First Bank building is a great
get anywhere else. Anything that becomes part of a lifestyle is
example—what was once an unused office building is now
going to stick around,” he predicts.
retail and market rate housing. The old Les Schwab building downtown will have apartments above and retail on the ground
Office space, like medical, is not moving quickly, but unlike
floor. The old Montgomery Ward building will become artists’
medical, which is hard to repurpose, developers can transform
lofts. This brings people downtown in spaces they want and it is what downtown needs.” ●
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Thurston County Chamber VOICE July 2017 19
Kaufman Construction & Development, Inc. acquired the necessary permits—including mitigating and pre approval for Mazama Pocket gophers—to move forward with plans to build a 325,000 square foot manufacturing or distribution facility in Grand Mound.
Grand Mound Experiencing Surge in Economic Activity
G
rand Mound, located in Thurston County,
Highway 12 and I-5, half-way between Portland and Seattle.
15 miles south of the Tumwater/Olympia/
We believe it will attract tenants interested in improving their
Lacey metro area, is experiencing a surge
distribution efficiencies,” said Theresa Wall, vice president of
of economic growth.
Kaufman Construction & Development, Inc.
Grand Mound is at the intersection of I-5
The proximity to the Port of Grays Harbor means that companies
and Highway 12—an access point to the Port of Grays Harbor
interested in cutting down their shipping times by transitioning
and Aberdeen—with available rail services and undeveloped
from the Port of Tacoma to the Port of Grays Harbor can now
commercial property. According to Thurston County, “Grand
find the warehouse space they need to establish a distribution
Mound is in a critical transition phase from rural farmland to
center near the port.
new commercial and higher density residential development.” Once Kaufman finds an anchor tenant who is willing to take 25 The Confederated Tribe of the Chehalis Reservation is building
percent or more of the space, they’ll begin construction of the
a new hotel and is developing other commercial property in
facility.
the area. In addition, Kaufman Construction & Development, Inc. acquired the necessary permits—including mitigating and
Meanwhile, Kaufman is working with the county and
pre approval for Mazama Pocket gophers—to move forward
surrounding stakeholders to explore transportation
with plans to build a 325,000 square foot manufacturing or
improvements to the area, which would include a roundabout
distribution facility.
on Highway 12 and Sargent Road. ●
“This is an exploding area because it is really well sited on 20 • July 2017 Thurston County Chamber VOICE
www.thurstonchamber.com
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www.thurstonchamber.com
Thurston County Chamber VOICE July 2017 21
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22 • July 2017 Thurston County Chamber VOICE
www.thurstonchamber.com
MEMBER PROFILE
Clean Cars can Lead to a Dirty Puget Sound! Submitted by Paulina Levy, Water Resources Assistant Outreach Coordinator, City of Lacey's Stream Team
F
undraisers are an important
fundraiser, should contact their
tool for community groups,
local jurisdiction to borrow a free
but can come at the expense
Clean Cars Clean Streams Car Wash
of harming local waterways, fish
Kit and approve the car wash
and wildlife. What community
location. To reserve a Clean Cars
groups and the businesses
Clean Streams Car Wash Kit and
who allow car washes on their
request site approval, please visit
property usually don't know is
www.CleanCarsCleanStreams.info.
that detergents, oil and road grime washed from cars flows into storm
An alternate fundraising option
drains that can end up untreated
for Thurston County and Lacey
in our groundwater, local streams,
groups is the Work Involvement
lakes and Puget Sound.
Now! (WIN!) Program. Each spring WIN! grants Thurston County and
The best way community groups can
Lacey-based youth groups $300 for
raise money through car washing is
completing service projects in the
to sell commercial car wash tickets.
community. For more information
Selling tickets for local car washes is
about WIN:
the only way to ensure that water is
•
Margaret L Miller, M.D. Board certified in Immediate Care
Providence Medical Group – West Olympia Immediate Care What can you do when you have a noncritical medical issue and your primary care provider isn’t available? Our immediate care team treats infants, children and adults for non-life threatening issues that may get worse if not treated immediately. Walk-ins are welcome – no appointment is needed. We treat common issues and ailments including: •
Minor illnesses
•
Bone, joint or muscle complaints
•
Cuts, puncture wounds, burns, foreign bodies and abscesses
Work-related injuries such as back strain, minor bruises and minor cuts (new claims) We also offer: •
IV hydration and IV antibiotics
Lacey - Jenny Bauersfeld at
•
Splinting
conserved, and dirty car wash water
(360) 413-4387 or jbauersf@
is sent to the local water treatment
ci.lacey.wa.us .
•
X-rays and diagnostic imaging
•
Lab tests for strep throat and flu
facility. For more information,
•
Thurston County - Ann Marie
or to order tickets, go to www.
Pearce at (360) 754-3355x6857
CharityCarWash.org.
or pearcea@co.thurston.wa.us
Community groups who choose
For more information or to contact
to hold a parking lot car wash
us, visit www.streamteam.info ●
www.thurstonchamber.com
West Olympia Immediate Care Clinic 1620 Cooper Point Road SW Call 360-486-6710 SPONSORED MEMBER PROFILE
Thurston County Chamber VOICE July 2017 23
PO BOX 1427 Olympia, WA 98507-1427