The Paine Field Effect on the Northend CRE Market
With 34,500 employees and a 6.85 million-SF industrial footprint, Boeing has historically been the primary contributor to the success of Everett, WA’s industrial market. Snohomish County, home of the aerospace giant, recently created waves when it announced Paine Field Airport in Everett will begin hosting commercial flights in late 2018. The airport currently outputs more than $68.7 million in sales and supports 905 jobs annually, 630 of which are direct. Major airlines Alaska, United, and Southwest have already announced planned service to and from the airport which will accommodate up to 2,350 daily passengers. Alaska will provide flights to Portland, Phoenix, Las Vegas, and California.
In addition to offering travelers an alternate to SeaTac Airport, Paine Field will likely have a significant impact on the surrounding commercial real estate market through increased traffic. Developers are already raving about the business opportunities sure to follow. The industrial market specifically is likely to expand as flights begin. Historically, Everett has seen lower industrial vacancies compared to the rest of the Northend market, reaching a current two-year low of 3.4 percent in the first quarter of 2018. Asking rent for specialized industrial properties increased 9.4 percent in 1Q18 and by 4.3 percent for flex properties year-over year.