Port of Olympia nears lease deal with Panattoni

The Port of Olympia is nearing a lease agreement with Panattoni Development Company to develop a 29-acre site in Tumwater, designated for industrial use. The South Sound Commerce Center, planned as a 477,880-square-foot facility, will cater to warehousing and light manufacturing. Community concerns persist regarding the potential presence of the endangered Olympia pocket gopher, which has historically delayed the agreement. Although Tumwater has certified the site as gopher-free, some residents question the validity of the outdated survey used for this certification. Panattoni has maintained exclusive rights to the entire 200-acre property since July 2020, yet the formal lease has been hindered by habitat conservation issues.

The proposed lease spans a maximum of 75 years, with an initial term of 55 years and options for extensions. Rental payments will commence after the building's completion or 14 months post-lease initiation, with a $0. 48 per square foot rate. Port officials will reimburse Panattoni for necessary site improvements as part of the agreement.