Wow! What amazing changes have taken place in Spokane’s real estate market over the last thirty-five years. It has been fun to watch our community grow and change in many positive ways through numerous real estate projects.  

Some of the changes that have strengthened and grown our downtown core have been the restoration and reuse of historic buildings, including the Davenport Hotel, Holley-Mason Building, Crescent Building, American Legion Building, Steam Plant Square, and numerous other building restoration projects.  A more recent project was the conversion of the former Macy’s Department Store to a vibrant mixed-use project called the “M.”  

Downtown today is a sought-after destination as the result of both public and private projects, such as the Spokane Arena, expanded Convention Center, Davenport Tower, Davenport Grand, and the recent Riverfront Park expansion and renovation.  Currently under construction is the $53 million Podium indoor sports complex.  

Other positive impacts in the downtown area include the Kendall Yards mixed-use development and the growing University District.  

The West Plains has seen substantial growth after many years of planning and the extension of sewer and water in the 1980s by the city of Spokane to large areas of potential development land. Ample zoned land and access to Interstate 90, the Spokane International Airport and the economic driver of Fairchild Air Force Base have resulted in major businesses locating in the West Plains.  

Over the years, some of those businesses have included Cyrus O’Leary’s Pies, B.F. Goodrich, Caterpillar, Odom Corp., and Inland Power. 

The Kalispel Tribe’s continued investment in its Northern Quest Casino development has been successful in attracting local customers, business travelers, and regional tourism visitors.  Northern Quest Resort & Casino together with the newer Spokane Tribe Casino, Fairchild, and new housing have brought many new retail businesses to Airway Heights.   

The Spokane County industrial market has been slow and steady over the last 35 years, with new development in the West Plains, the infill of Spokane’s older East Side industrial market, and new industrial development in the Spokane Valley.  

The most significant growth of Spokane’s industrial inventory has been in the Valley.  The majority of that growth has been the result of Crown West Realty’s continued upgrading and expansion of the Spokane Industrial Park.  The Park covers over 625 acres and now has approximately 5 million square feet under roof.  

Spokane’s industrial market had been flat for a number of years when it received a significant boost eight years ago with the passing of Initiative 502, which legalized the growing, processing, and sale of marijuana. In the following years, marijuana growers and processors absorbed the majority of Spokane’s long-vacant industrial inventory and gave industrial rents a needed increase.  

A current wave of new industrial development has been brought about by low vacancy rates and the opening of the new 2.6 million-square-foot Amazon distribution center on Geiger Boulevard, in the West Plains.  Amazon’s entry into Spokane, with the potential of additional planned facilities, has put Spokane on the map with large industrial users seeking locations in communities with affordable land and a productive available workforce.  

Numerous spec industrial projects are in permitting or under construction, such as the Douglass Legacy Park, just east of Amazon; Crown West Realty’s Euclid Logistic Center; and LB Stone Properties’ continued development of the Playfair Commerce Park.  

Spokane now has high ceiling industrial space ready to meet the needs of major national space users.   

Spokane’s retail market has seen both highs and lows over the last 35 years.  Seattle’s Sabey Corp. acquired NorthTown Shopping Center in 1989 and took the mall through a multiphased expansion that added 100 new retail stores and doubled the mall’s size.  This transformation of NorthTown resulted in one of North Spokane’s most popular retail shopping venues.  

In 1997, the Spokane Valley Mall opened with 750,000 square feet and anchor tenants Sears, The Bon Marche and J.C. Penney.  Those anchors were complimented by a 12-screen movie theater and 75 shops and restaurants.  

To keep up with the changing retail landscape, the Cowles family undertook a $110 million expansion and remodel of downtown’s River Park Square shopping center, which was completed in 1999.  This significant investment in downtown’s retail market included a new 20-year lease with Nordstrom, a 14-screen AMC theater, and dining and retail tenants that cemented downtown Spokane as a regional destination.  

In the last 20 years, retail development has continued to grow with the addition of grocery-anchored neighborhood retail centers and in-fill development.

Spokane’s once vibrant retail market has made significant changes over the last few years with e-commerce’s impact, and the face of Spokane’s retail market will continue to change and evolve in the years ahead.  

Over the years, most of Spokane’s office market growth and expansion has primarily occurred outside of the downtown core.  One of the first significant developments was Walt Worthy’s Rock Pointe project.  Worthy started with his first building in 1986 and grew that project to four buildings totaling 600,000 square feet.  Rock Pointe provided office users with their first major alternative to downtown office space with its free parking, easy access, and proximity to the core.   

Other significant office building projects over the years include Guardian Life Insurance’s claims building on Magnesium Road, which was developed in 1987 and is now occupied by Spokane International Academy,  Dick Vandervert’s 115,000-square-foot Northpointe Professional Building, Ambassador Group’s 123,000-square-foot building on Flint Road near the airport, which is now home to Northwest Farm Credit, and Walt Worthy’s 250,000-square-foot Riverview Corporate Center, near the Spokane Valley Mall.  

Spokane is currently experiencing increased in-migration and solid job growth.  Both of these factors bode well for continued dynamic growth of all sectors of Spokane’s commercial real estate market far into the future.

Jeff Johnson is the president of Spokane-based Black Commercial Inc., one of Spokane’s largest property management and commercial real estate companies.