Kent officials highlight industrial rent gains, $1 billion 509 investment and new marketing push for Nathan property

Bill Ellis, who presented the city—s economic and community development update at the Kent City Council meeting on May 6, told the council the Kent Valley has begun to command a rent premium for industrial space compared with nearby Tacoma and remains an attractive option for investors despite broader trade and economic uncertainty.

"The rent growth in the Kent Valley has been remarkable and strong and is actually differentiating itself," Ellis said. He attributed part of that strength to recent stockpiling at warehouses, large aerospace leases in Puget Sound and Kent's geographic advantages for freight and reverse commuting.

Ellis emphasized a major transportation project he described as the "509 investment," saying it is a roughly $1,000,000,000 investment that the city and region have made to strengthen Kent's connectivity to the airport and Interstate 5. "This transportation investment only levels that up," Ellis said, adding that the city contributed $2,000,000 toward the infrastructure work and that the first leg of the project (stage 1b) should open in 2026.

Ellis also reviewed the status of the Nathan property, which the city has prepared for industrial development through zoning changes and frontage work. He said new highway access to Willow Street and improvements to a nearby Puget Sound Energy substation have increased the site's competitiveness; staff expect substation construction to begin in June or July and said the city will release a request for proposals this month to solicit developer interest.

"We're going to release our request for proposals to market the site and give a fair way to respond to show your interest as a developer in this property," Ellis said, describing the opportunity as a "rare campus or build-to-suit opportunity." He told the council staff will report back on responses after the solicitation period.

Council member Boyce praised the staff approach, saying the city stopped pursuing an earlier negotiation when market terms were not met and has returned to the market after site improvements. No formal council action was taken on the matters Ellis presented; the item was an informational update.

Why it matters: Kent's industrial market trends, the 509 infrastructure investment and the Nathan property marketing effort are directly tied to jobs, land use and future tax base in the Kent Valley. The city's stated timeline for the 509 first leg (2026) and the planned RFQ for the Nathan property create concrete near-term milestones for residents and developers.

What the council asked for next: Ellis did not request immediate council action but indicated staff will return with results from the Nathan property solicitation and additional updates as the 509 work advances.