December 2016
Volume 15 • Issue 12
Tri-City housing market boasts double-digit growth BY JESSICA HOEFER
for Tri-Cities Area Journal of Business
Year in Review
Tri-City economic development experts highlight year’s growth Page 11
Real Estate & Construction
Cost Less Carpet expands with $5.5 million distribution center Page 23
Family Owned
Owners cite advantages of working with family page 39
he Said It “The most gratifying thing is to see fellow business owners succeed.” - Zak O’Brien, vice president and general manager of O’Brien Construction in Kennewick Page 40
The Tri-Cities appears to be beating national and state averages in the residential building market. The region saw growth with new residential building permits up 26 percent over the same time period last year with more than 1,300 new single-family home permits. Pasco recorded the highest number of permits and is experiencing growth similar to 2011, officials say. Pasco issued 360 single-family permits through Nov. 30 with Kennewick following with 307. Richland issued 254 and West Richland 74. This year also proved to be a good year for national growth. The number of building permits for single-family homes was up eight percent from January through September 2016 compared to the same period last year. At the state level, there were 16,801 building permits issued for single-family homes over the same time period, an increase of 16 percent over 2015. The year-to-date total for all building permits in Benton and Franklin counties totals more than $909 million. Altogether, the single-family permits for 2016 through Nov. 30 totals more than $378 million in new growth spending in Benton and Franklin counties. But while the economy is on the mend, Jeff Losey, executive director of the Home Builders Association of Tri-Cities, said he doesn’t expect the surge to continue in 2017. “Depending on the interest rate increase that the feds are talking about—although it’s not supposed to be significant—we don’t believe the Tri-Cities will continue with (a similar) increase. Somewhere between 1,100 to 1,300 new residential permits seems to be what a good number is for the Tri-Cities, and we believe it will stay the same — which means growth and opportunity for jobs still,” said Losey, who has been the face of the association for more than a decade. uHOUSING, Page 30
Construction is underway on the Port of Kennewick’s Columbia Gardens Wine Village on Columbia Drive. Palencia Wine Co. of Walla Walla and Bartholomew Winery of Seattle plan to headquarter their wineries there. Port of Kennewick commissioners accepted them as the first tenants.
2 wineries plan to move into new Kennewick wine village BY KRISTINA LORD editor@tcjournal.biz
The vision for a vibrant riverfront wine village in Kennewick that’s been a decade or so in the making now includes two wineries. It’s closer to reality after Port of Kennewick commissioners gave the goahead Dec. 13 to pursue tenant agreements with an award-winning Walla Walla winemaker who grew up in Prosser and a Seattle winery known for using unique grape varieties. The two wineries—Palencia Wine Co. of Walla Walla and Bartholomew Winery of Seattle — will be the first tenants in the Port
of Kennewick’s 5.4-acre Columbia Gardens Wine Village. They both plan to move their winery headquarters to Kennewick and open tasting rooms facing the river and riverfront walking trail. Port CEO Tim Arntzen said the wineries will turn the planned wine development into something special. “Take Cedars. It’s just a building but when you have Cedars in it, you have the finest restaurant in our community. When you have superb tenants, it becomes the wine village,” Arntzen said. “Victor Palencia and Bartholomew Winery each in their own right are top-shelf wineries.” uWINE VILLAGE, Page 6
More co-working space to open in Kennewick BY JESSICA HOEFER
for Tri-Cities Area Journal of Business
The trend of offering flexible office space for those on a shoestring budget is gaining traction in the Tri-Cities with the opening of Connect Workplace in Kennewick. The co-working movement allows people to rent shared office space in a collaborative environment. “Let’s say you’re an insurance agent, financial planner or attorney,” Scott Gearheart, president of Connect Workplace, said “with us, you come in, have your office, conference room, kitchenette and lounge—and all of that is shared with everyone in the club.” Blue Cougar Properties’new 12,000-squarefoot $2.5 million building opens this January
at 8350 W. Grandridge Blvd. The first floor is home to Advanced Family Chiropractic, with the second and third floors reserved for those who don’t need office space full time. The Connect Workplace office décor is a mixture of glass, metal and wood with lively colors that are not too trendy, said Gearheart, who is also one of Blue Cougar Properties’ four owners. “It’s going to be fun, but not super eclectic,” he said. Club memberships vary from executive office suites to co-working environments and even virtual office packages. uCO-WORKING, Page 20
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