By Catherine Sweeney
During the year, Puget Sound saw a significant increase in investment activity, seeing many transactions in the first half of the year. In a recent transaction completed this month, Palm Beach, Florida-based investment group Sterling Organization acquired the fully occupied Lakewood Diamond Plaza shopping center. Ownership records show the property was previously owned by West & Wheeler, which sold the asset for $17.7 million.
The property consists of multiple buildings, located at 10901, 11011, 11013, and 11021 Pacific Highway in Lakewood. According to MaKensay Real Estate Services, which manages the rental of the property, the Lakewood Diamond Plaza is currently occupied by tenants including O’Reilly Auto Parts, Grocery Outlet, Lee’s Fashions and more.
Located just south of Tacoma in the community of Lakewood, the property is conveniently located along the Pacific Coast Highway and close to Interstate 5. The property is also close to a number of other area assets. retail, with nearby tenants including The Home Depot, Honda, Target and more.
Overall, the region has seen a large number of business transactions over the past few months. According to a first-quarter market report from Kidder Mathews, investment activity increased significantly, reporting 114 retail sales of over $1 million. At the same time, net absorption is up to just over 1 million square feet. Vacancy rates in the Puget Sound area also remain relatively low, with Pierce County posting a six basis point decline to 2.8%.
With the increase in activity, rental rates are also expected to experience continued growth in the future. According to the report, rental rates have increased by approximately 2.4% year over year and are expected to continue to increase over the next few years, with a rental growth rate of 3.7% expected. for the year 2022 alone.