Some downtown Spokane building owners and managers say they're contending with higher costs to provide security services, which when coupled with other increasing operating expenses, is leading to more frustration.

Chris Batten, founding principal and designated broker at Spokane-based real estate company RenCorpRealty LLC, says that before the pandemic, RenCorp's downtown Spokane properties didn't require private security services. Now, costs to provide security patrols average about $100,000 a year for the downtown Spokane sites in RenCorp's portfolio.

"The cost to the owner is going up exponentially simply based on the fact that two or three years ago, we didn't even have security, and now we do," Batten says. "In addition to that, we've added security cameras at almost all of the properties, so that's another cost."

Additional security is needed due to a combination of factors, including fewer resources available for law enforcement, an increase in loitering, open drug use, and the harassment of some building tenants and employees, he says. Instances of property damage is also a concern, but Batten contends that is a more rare occurrence. 

Building owners are operating in a market of competitive leasing rates that don't allow room for landlords to pass along extra security costs to tenants. Pressure also is coming from tenants who previously considered security as a benefit and now have an expectation of leasing a secure and safe property to operate their company, he says.

Batten, however, is hopeful the security challenges can be turned around with time and effort and remains fully vested to downtown Spokane, he says, adding that downtown property owners should turn to city leaders for assistance and should reassess the baseline level of service to be expected from the city.

In addition to paying taxes to support the police department, downtown businesses are also voluntarily taxing themselves to pay Business Improvement District assessments that provide supplemental security through the Downtown Spokane Partnership, he says. 

"If it weren't for security ambassadors, I don't know where it would be at today," Batten says. "It'd be substantially worse ... and in my opinion, we have to go back to that baseline level of service and what the city should be providing for our tax revenue."

RenCorp has over 20 properties in downtown Spokane, including properties located near nine of 12 railroad overpasses, Batten says.

Bryn West, vice president of leasing and operations at Cowles Real Estate Group, says, "One thing that could really help (security) is for the large employers to get their employees back downtown."

Cowles Real Estate Group typically has a staff of 15 security employees who provide in-house security services for the company's downtown Spokane properties, which include River Park Square, at 808 W. Main; the M Apartments, at 612 W. Main; the Spokesman-Review building, at 999 W. Riverside; the production facility building, at 1 N. Monroe; and the Chronicle Building, at 926 W. Sprague.

"When you're out walking around with a bunch of people on their way to lunch or out shopping, you have a general sense of peace (compared to) when it's quiet and it feels like there's nobody around," West says. 

Harry Sladich, co-owner and chief development officer at Spokane Valley-based GoJoe Patrol Franchising LLC, says providing security is an expensive endeavor. Sladich attributes rising costs to Washington state's comparatively high minimum wage, employee benefits costs, and climbing liability insurance coverage expenses.

The cost for a $7 million liability policy for GoJoe has climbed 20% in the past year, he says.

"We mirror every other industry in that everything is more expensive," Sladich says. "I think what's frustrating to most business owners is that they resent having to pay in a situation where many business owners are looking to mitigate expenses."

Emilie Cameron, president and CEO at Downtown Spokane Partnership, a nonprofit membership organization that advocates for the city's core, says the organization provides supplemental security to businesses operating within the BID.

The district covers over 80 blocks in the city's core, from Cedar Street to Browne Street. The district excludes areas south of the railroad viaduct to Interstate 90, although DSP advocates for businesses outside its boundaries and provides supplemental contracts ahead of big events in the city, she explains.

Ahead of Bloomsday, for instance, the DSP raised private donations to hire a team to clean up garbage and remove graffiti at the city's gateways, Cameron says.

"The reality is that there are some very real challenges that have created an environment where the private sector has been forced to invest a significant amount of money either mitigating or deterring crime on their property," she says. "Understandably, they're frustrated at a time when we have small businesses that are still trying to dig out of the holes created during COVID."

Both property owners and commercial tenants pay an assessment to DSP to fund a variety of programs and services such as the Clean and Safe program, business promotions, marketing support, and other public events.

In 2024, DSP's projected assessments are $1.6 million, $75,000 higher than in 2023. Of that, the organization is budgeting to spend about $1.2 million directly on the Clean and Safe programs and services.

DSP programs and services are meant to enhance and supplement city services, she says.

"The number one thing that addresses security concerns around downtown is the enforcement of laws that can deter that activity," Cameron says.

Cameron is optimistic that the recent U.S. Supreme Court ruling that overturned the 9th U.S. Circuit Court of Appeals' decision regarding the enforcement of illegal camping, city of Grants Pass v. Johnson, will benefit security in Spokane's core.

The DSP is one of multiple downtown management organizations nationwide that petitioned the court in support of the decision to reverse the prior ruling, she says.

"The 9th Circuit's ruling made it more difficult, not less to help the homeless accept shelter. Downtown Spokane should be a welcoming and safe space for everyone, and with (the June 28) ruling, the city of Spokane must ensure all Spokanites have access to clean and nonthreatening public spaces," says Cameron in a statement about the ruling.

The Clean and Safe program operates with a staff of 16 employees who patrol downtown city streets seven days a week, says Cameron. During the holiday shopping season and ahead of events such as the Expo '74 anniversary celebrations, the nonprofit extends its hours and will contract for additional private security patrols through GoJoe Patrol.

Sladich, of GoJoe, says another contributing factor to higher security expenses for property owners, is that law enforcement agencies across the nation are contending with staffing shortages.  

"There are trends across the U.S. in every city where the police department and the state police are absolutely desperate to get people hired and to replace the massive retirements and resignations they're seeing," he says. "I don't think it's a matter of the city saying they don't want to support you, it's really the lack of sheer manpower. So private security is coming in to fill that role."

West, of Cowles Real Estate Group, concurs and says the company has provided in-house security since before she joined 15 years ago.

"It's really important to us that the shopping center and our other properties feel safe for anybody who wants to come down, whether they're a new mom with a baby in a stroller or retired folks visiting from out of town," she says.

Batten contends that security challenges are encumbering the return of downtown office workers.

"Unfortunately, we're too close to the Idaho border and people have choices," he says. "Some people are simply leaving."

West declines to disclose the company's security expenses although she says costs are rising due to higher wages for security officers.

"We want to pay our officers well because their jobs are not easy. We want to be competitive so that we can maintain the best class of officers," West says.

Sladich, of GoJoe Patrol, agrees, and says the security company pays competitively as an effective retention strategy.

"You get what you pay for," says Sladich.