The Camas-Washougal area has attracted significant development attention recently, with major announcements such as Integra Telecom completing its 500-employee headquarters move, Banfield starting on its 20-acre headquarters and research facility and Fisher Investments finishing its second five-story office tower, spurring even more development opportunities.
The economic recovery is well underway.
Industrial/Flex/Office: Commercial office and industrial space within the Camas-Washougal area has typically been built to suit for a single user. The Great Recession had a profound effect. As companies scaled back operations and workforce, it opened up an abundance of space that hadn’t previously been on the market.
Vacancy rates soared from less than 2 percent to nearly 20 percent. During the initial stages of the economic recovery, existing space was difficult to fill due to unique layouts — and in a few cases, unreasonable terms. The high vacancy rates depressed the market’s willingness to add new, more efficient space.
Over the last 18 months, market demand has increased considerably. With existing space rapidly absorbing and the market’s reluctance to build large speculative space, there is a shortage of space to meet market demands.
With development taking longer to complete and business expectations for space availability decreasing, it’s becoming more imperative for sites to complete pre-development work. Several new projects will be online in late 2015, but the lack of immediate space could mean lost opportunity.
The Camas-Washougal market will continue to be driven by single-user, owner-oriented demand. However, the growing economy will create multitenant opportunities consisting of startups and growing home-based businesses.
Commercial Retail: Retail vacancy rates have traditionally been well above countywide and regional rates. This is primarily due to consumer travel patterns shifting over time.
With the exception of Lone Wolf Investments in downtown Washougal, Killian Pacific along Highway 14 and the incomplete Black Pearl along the Washougal waterfront, no new retail has been constructed within the city limits of Camas and Washougal in recent years.
Most of the new retail development has been occurring along Camas’ west border, along 192nd Avenue and within Columbia Tech Center. Vacancy rates still remain high in older retail strip malls.
There have been some positive signs in retail. Several older spaces in both downtowns have been renovated, and further investment is expected through local sources.
As vacancy rates within the downtowns fall below 5 percent, downtown sites and other close-in areas will redevelop. Small boutique shops provide the best market opportunities, as Vancouver will continue to capture limited big box retail opportunities. Plans for new mixed-use developments could come to fruition by 2016.
Paul Dennis is president and CEO of the Camas-Washougal Economic Development Association.
