NAIOP Washington State celebrates 50 years as a chapter this year. Founded in 1976 as the Puget Sound Chapter of the National Association of Industrial Parks, NAIOPWA has since evolved into an association that elevates all sectors of the commercial real estate development industry, from industrial and office properties to residential and retail projects and everything in between. In recognition of the past five decades of commercial real estate development, we are looking back at the iconic projects that have shaped skylines, defined cities, and powered economic growth throughout our region.

Panattoni’s Whirlpool Distribution Center Ignited Frederickson Industrial Frenzy

Today, the Frederickson area is practically synonymous with industrial development, with Amazon’s massive $219 million acquisition making headlines earlier this year. The confluence of available land, local labor, and convenient access to transit corridors and nearby ports makes Frederickson prime for warehousing and logistics operations. But this is a relatively recent evolution for the area, and it would not have been possible without Panattoni Development Company’s Seattle office planting a 900,000-square-foot flag in this South Sound industrial hub back in 2007.

Best practices for Electric Vehicle (EV) charging in a multifamily building
As the EV market continues to gain momentum, the need for EV charging capacity will only increase. All multifamily buildings will need to consider how to provide the charging infrastructure needed to fulfill this demand and create a more sustainable future. The high cost of development leaves most developers and owners budget constrained; this is why it becomes imperative to provide the most responsive charging system. This piece will consider the practical realities of what an EV driver desires and needs from a charging system and offer solutions for the most cost-effective way to deliver the most expansive system possible. You’ll learn that it is imperative for a developer to plan for charging capacity from the utility for 20-30% of the parking spaces with L2 type stations. (that is only for capacity. Actual deployment of stations is better served with a mix of L1s and L2 stations.) This will set up developments to maximize tenant satisfaction and charging capacity in the future.

The EV driver and their wants and needs
What does an EV owner and resident of a multifamily building want in terms of charging capacity, and how does this compare to what they need? Sure, we’ve seen the stations with a credit card reader that give a relatively quick charge, but are these types of stations the right ongoing solution for an EV driver living in a multifamily building? The reality is that these pay stations are best suited for someone in a bind who needs an emergency charge of their vehicle. Most often an EV driver needs a dedicated charging station located where they park frequently for long periods of time. This means that residents of a multifamily building are best served by a dedicated parking space and charger. It’s that simple. All the other chargers serve as backups or sources needed for taking longer trips.

Honoring Excellence: NAIOPWA’s Night of the Stars 2020 

Honorees showcase the best regional commercial real estate development in 2020 with an emphasis on creative multifamily mixed-use, sustainability and last-mile delivery 

SEATTLE – At today’s first-ever virtual NAIOPWA Night of the Stars, the commercial real estate community honored the year’s most innovative, creative and inspiring CRE projects in Washington state. Completed between July 1, 2019, and August 1, 2020, these projects particularly demonstrate the flexibility and strength of the local CRE industry in the face of a global pandemic. 

The 2020 winners and finalists reflect major shifts in our region toward affordable, multifamily housing that creatively supports communities, as well as the rapid increase in industrial real estate supporting last-mile delivery. This year, as always, judges used a rubric to evaluate and score projects according to defined criteria and made category adjustments reflecting the unique nature of projects, such as dividing industrial projects into those built on spec and those built to suit. This year, too, the full immersion of sustainable practices in the region’s development projects lead to multiple honorees in different market categories. 

NAIOPWA's Night of the Stars identifies outstanding real estate developments and activities in a variety of market types and the individuals who made the projects happen. The awards aim to honor the teams who build our landscape in this annual celebration of the industry. Each finalist project was evaluated for impact on the community, market adaptability, ingenuity and local contributions. 

What does it mean to go first? In celebration of NAIOPWA’s Night of the Stars inaugural “Sustainable Development of the Year” category, here is a closer look at the two nominees, each of whom elected to be on the front edge of sustainable real estate development. Read below to learn more about these two industry-leading endeavors.

What is the first thing many developers or investors think when they hear the words “sustainable” or “green” as their architects describe their building design? For decades the common perception has been that it is difficult (if not impossible) to make a deeply green building pencil financially. However, by definition “sustainability” is the nexus of environmental, social and economic progress. We interviewed key participants representing both Watershed and Inspire at the Russell W. Young Building to learn how they overcame perception to create these very special properties.

We’ve now reached 2+ months of working from home and have settled—as best as possible—into a new routine that revolves around juggling family, colleagues, and clients, while maintaining our personal health and well-being 24/7. That’s a lot. Some of us may be embracing this new work style while others are still overwhelmed by the daily challenges. But what’s top of mind for us all is what’s looming ahead. What will our new normal look like when our stay-at-home restrictions are lifted and more importantly, what changes can we expect to stick?

There has been much speculation and publication around what we could see when we return to the office. There will undoubtedly be the anticipated ongoing requirements of continuing to practice frequent hand washing and safe distancing. Health screenings for body temperature and the need to wear face masks in public places will become part of our routine. Physical changes to the work environment such as greater space between workstations, one-way traffic flow and limited occupancy of meeting rooms and elevators will also be necessary to maintain a safe space. We are all becoming more familiar with general changes that will certainly be in force on day one. The real question is, which of these changes and other modifications will be part of the workplace going forward, even after the likelihood of contracting COVID-19 has subsided?

It pays to go green!
Sustainability is becoming ever more important in the development of and investment in commercial real estate (CRE) due to several factors:

• Increased attention to Environment, Social and Governance (ESG) issues at the corporate level.
• Increased interest from the real estate investment community in ESG aspects of development.
• Demographic impact of millennials placing a greater importance on environmental and social issues.

Corporate Interest in Sustainability via the ESG framework

NAIOPWA’s Sustainable Development Committee held its fourth annual Change Makers event on June 27, 2019. The event brings together voices from a diverse group of local change-making organizations making social, environmental, and economic impacts, and establishing Seattle as a leader in sustainable development and beyond. The goal was to pool our collective wisdom, challenge assumptions, reach across boundaries, and explore what's possible when everyone pulls in the same direction.

On Wednesday morning, we heard from three of Seattle’s commercial real estate innovators on their strategies in affordability amid the city’s rapid growth and development.

Who demands multiple mentors, likes working individually and has an attention span of eight seconds? A despondent Gen X’er? Nope. A forgetful Baby Boomer? Nah. Look no further than those born the same year Windows 95 was released. We found out about this generation and their values and expectations at this month’s NAIOPWA breakfast.

Programming Committee Co-Chair Ed Scherer introduced the October panel about augmented, virtual and mixed reality technologies and how they are changing the commercial real estate industry. These technologies are becoming more and more seamlessly embedded and integrated into the design and delivery process, providing immersive experiences, and streamlined and more efficient construction and maintenance.

On July 11, NAIOPWA held our monthly breakfast meeting at the Georgetown Ballroom to learn about the future of urban industrial and take a field trip to the nearby Prologis Georgetown Crossroads, the first multi-level distribution center of its type.

President Tony Toppenberg kicked off the meeting by thanking our breakfast sponsor, Sierra Construction, and our stellar group of annual sponsors. We sincerely thank them for their involvement.

On Wednesday, NAIOP WA State interacted with a panel from CrowdStreet, Inc., their sponsors Scanlan Kemper Bard and SMARTCAP, and Stoel Rives LLP about online real estate investment, which is experiencing exponential growth. The online investment market allows for a diversity in investment profiles, potentially higher gains, and an increase of available analytical data. Molly Moore, CMO from CrowdStreet, moderated the panel where they talked online investment and legal implications and regulations.

Mary P. Hull, a Partner at Stoel Rives LLP, gave a brief introduction on the legal landscape explaining whether it is legal to raise capital for commercial real estate online (yes), and going over the ins and outs of the Jobs Act 2012, Angel List of 2010, and general securities laws such as Rule 506(b) and 506(c).

NAIOP’s September 20 breakfast meeting convened in Southcenter near the epicenter of King County’s industrial area. This meeting on Innovation in Industrial Real Estate was sponsored by Centerpoint and Rushing. We sincerely thank them for their support.

President Kristin Jensen opened the meeting; our annual business meeting included election of our 2018 officers and ratification of the actions of the 2017 board.

Innovation is the watchword of our industry. As a great sage from bygone days said, “He who is not busy being born is busy dying.” Our July Breakfast highlighted some innovative projects that have been completed in our area. John Teutsch began the meeting and outlined the new members, plus previewed our next Breakfast Meeting, A Tale of Two Cities on September 21, and the Property Tour on July 21. Kris Glandon spoke about the Community Enhancement Project at New Start High School on September 24. Finally, Kip Spencer from SECO outlined the new South Port development in Renton.