Top business stories for the Spokane area in 2021
This year brought a slight sense of normalcy in the Spokane area as companies were allowed to fully resume operations when the state reopened in June.
In 2021, the headlines shifted from restrictions and uncertainty to land and construction transactions, retirement planning, new builds and expansions, and a booming housing and rental market.
Here are some of the top business stories that dominated headlines in 2021:
The Davenport Hotels are being sold for more than $ 200 million
Several properties and businesses changed hands that year, but one of the biggest deals came this month when developers and hoteliers Walt and Karen Worthy sold The Davenport Hotels to Denver-based privately owned KSL Partners for more than $ 200 million sold, according to Spokane County Recorder’s office records.
Spokane County’s Assessor Tom Konis told The Spokesman Review that the selling price of the five Worthy hotels and the parking garage just west of Davenport Tower were nearly double the estimated value of the properties for the 2022 tax year. NAI Black’s CEO and Director, Dave Black, who was not involved in the sale of The Davenport Hotels, said the transaction could be “the largest deal ever made in Spokane.”
In addition to the Davenport Hotels, several other notable downtown buildings changed hands this year, including the historic Bennett Block building, which the Hieber family sold to a group of investors in September for $ 6 million. That same month, Sweeto Burrito franchisee Scott Isaak bought the historic Peyton building for $ 11.4 million.
Amazon continues regional expansion
A year after opening its West Plains fulfillment center, Amazon continued its expansion in the region in 2021, making it one of Spokane County’s largest employers.
Amazon opened its 1.3 million square foot Spokane Valley logistics center on E. Garland Ave in September. 18007, where it processes orders for larger items including patio furniture, bulk paper items, and outdoor exercise equipment. According to Amazon, the Spokane Valley logistics center has created 1,000 new jobs.
Amazon also started airfreight operations at Spokane International Airport in October, making it the second facility of its kind in the state. Amazon also plans to open a delivery station and sorting center next to its fulfillment center in West Plains in 2022.
Change of leadership
That year saw leadership changes at local companies that saw several CEOs retire and end decades of careers.
Bob Wills, co-founder of Bernardo | Wills Architects, announced his retirement from the company in June. A significant part of Wills’ career has been designing several projects at Fairchild Air Force Base.
Jeff Philipps, CEO of Rosauers Supermarkets, retired in August after 21 years at the helm of the grocery chain that expanded into six new markets, introduced grocery shopping online, and grew sales to nearly $ 600 million.
Other retirements this year included Tim Henkel, President and CEO of Spokane County United Way, Robin Ball, owner of Sharp Shooting Indoor Range & Gun Shop, and Kiemle Hagood chairman and co-owner Tom Quigley.
State approval for sports betting
The Kalispel and Spokane tribes received government approval in September to allow sports betting in their casinos.
Sports betting approval brought expansions to both Northern Quest Resort & Casino, which unveiled the 2,300-square-foot Turf Club Sports Book earlier this month.
The Spokane Tribe completed an expansion in November that added 20,000 square feet of additional gaming space, including a larger non-smoking game room, a new restaurant, and sports betting.
Hot real estate market
The hot real estate market in the Spokane area continued to heat up with soaring prices, low inventory, high demand and plenty of offers throughout the year.
The region’s average closing price hit a record $ 395,000 for the first time in July when out-of-region buyers and remote workers relocated to Lilac City, a trend accelerated by the pandemic.
Since then, the county’s average property price has fallen to $ 375,000 in November, but experts predict the property boom will continue through 2022, although market activity won’t be as brisk as this year.
The area’s real estate boom spread to the rental market as rents rose rapidly in the Spokane area this year. Spokane led the country in June rental growth with 8.1%. Tenants struggled with affordability, and some reported double-digit rent increases. Since then, rents began to stabilize and prices fell 3.1% from October to November.
The average rents in Spokane in November were $ 990 for a one-bedroom apartment and $ 1,361 for a two-bedroom apartment, according to the apartment listing. December dates have not yet been released.
Timber prices rise during recovery
At the same time as the Spokane area was experiencing its historic home boom, builders were faced with the highest timber prices in history. In early 2021, home builder advocates said prices had increased the cost of an average new home by more than $ 24,000.
Joel White, executive director of the Spokane Home Builders Association, said contractors were paying about $ 365 per 1,000 sheet feet of framing lumber in April 2020.
But in 2021, amid a real estate boom, contractors will pay more than $ 1,000 per 1,000-foot-foot, White said.
“It’s absurd what’s going on here,” said White. “This is a supply problem. We don’t have enough wood to meet demand. “
Spokane County is gaining jobs
Spokane County’s unemployment rate reached 3.5% in October, a record previously set in October 1997, according to data from the Washington State Employment Security Department. The district’s unemployment rate was adjusted to 3.8% in October and remained constant in November.
Despite the hospitality and hospitality workforce shortages, Spokane’s job growth was driven by key companies and its position as a regional hub, Doug Tweedy, a regional economist with ESD, told The Spokesman Review in October.
Spokane County has largely recovered from job losses due to the pandemic, but future job growth will depend on a continued influx of new residents, Avista Corp. chief economist Grant Forsyth said on an economic forecast last month.
Car prices are rising
The rapid recovery of the economy from the coronavirus pandemic created a huge divide in the automotive market.
Several automakers stopped building cars, betting that buyers would not be willing to spend on expensive items during a recession.
As a result, the lack of supply drove new car prices and used car prices to all-time highs.
Gus Johnson Ford, sold to Corwin Automotive Group in October, would generally have around 150 to 200 new vehicles on his property. But in July 2021, the car park had mostly empty spaces.
“I’ve never seen anything like it,” said Jason Moran, used car manager at Gus Johnson, 8300 E. Sprague Ave. “If you had told me at any time that we didn’t have any new cars, I would have laughed.”
Long-standing businesses shut down The pandemic has forced the closure of several businesses in the Spokane area. In June, the construction startup Katerra Inc. closed its plant in Spokane Valley and laid off more than 60 employees.
Vancouver, Canada-based pulp and forest products company Mercer International Inc. bought the former Katerra facility for $ 50 million in August.
Jim’s HomeBrew Supply, which claimed it was one of the oldest operating breweries in the country, closed in September after more than 70 years of operation.
Other closings included Charley’s Grill & Spirits, Lantern Tap House, Wolffy’s Hamburgers, Amy’s Donuts, Spa Paradiso, and Fleur de Sel.