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Study finds limited industrial space in Southeast Redmond, flags energy constraints and a 'flex-space' mismatch
Summary
A market study for the Southeast Redmond Manufacturing & Industrial Center identified limited traditional industrial supply, a low overall vacancy rate (~3.6%) but higher vacancy among flexible 'flex' space, energy constraints for power‑intensive tenants, and recommended land‑use incentives, infrastructure coordination and targeted recruitment.
City staff presented findings from the Southeast Redmond Manufacturing and Industrial Center (SEMIC) market study, outlining market constraints and potential strategies to retain and attract manufacturing and industrial jobs.
“Some of the key findings... There is a limited supply of industrial manufacturing space in Southeast MIC. We have, as of Q2 this year, have an approximate vacancy rate of 3.6%,” said Lauren Alpert, Senior Planner, noting that the overall figure is below commonly cited healthy vacancy ranges. The study also found a mismatch in the 'flex' space segment: while there is demand, available flex locations are not always suitable or affordable for the tenants seeking them, producing both vacancy and unmet demand in that submarket.
The report flagged energy constraints — cost and timeline for obtaining power — as a key barrier for advanced-manufacturing and high‑power users, and listed opportunities in advanced manufacturing, robotics, aerospace, ecommerce/distribution, and small-scale legacy businesses. Recommended strategies include zoning and incentive tools (allowing increased floor area ratio or heights where appropriate, encouraging shared loading docks, and targeted incentives for small flex space), coordination with utilities (PSE) to address capacity, convening partners for site‑readiness, microtransit pilots (RedLINK), and exploring funding mechanisms including public–private partnerships or city‑owned lease space to subsidize tenants.
Commissioners pressed staff on whether the study was treating distribution as equivalent to manufacturing; staff said the study team had sought to focus on manufacturing and that power constraints limit immediate interest from large data centers. The study will inform rezoning and follow-up actions later this year and next.
