Industrial Business Parks and Data Centers Are Drawing Investors — What It Could Mean for Boise Commercial Real Estate
Industrial real estate has become one of the most closely watched sectors in the commercial property world. While office markets continue adjusting and retail evolves, warehouses, business parks, and technology infrastructure are attracting renewed investor interest.
A recent transaction in the Pacific Northwest highlights how investors are targeting properties that combine traditional industrial space with digital infrastructure.
According to reporting by Randyl Drummer in CoStar News, a Washington real estate firm recently purchased a multi-building industrial business park near Seattle that includes a small operational data center. You can read the original report here:
https://product.costar.com/home/news/1806296013
For those following Boise commercial real estate trends, deals like this offer insight into how investors are thinking about industrial assets — and where the sector may be heading next.
A Major Industrial Property Changes Hands Near Seattle
The property involved in the transaction is Gateway North, a six-building business park located in Tukwila, Washington, just south of Seattle-Tacoma International Airport.
A subsidiary of Matthew G. Norton, operating as Northwest Building, acquired the property for approximately $76.5 million.
Key details from the transaction include:
- Roughly 252,000 square feet across six buildings
- Construction dating back to the early 1990s
- Located about five miles from Seattle-Tacoma International Airport
- Nearly fully leased with 17 tenants
One unique component of the property is a small data center operated by EdgeConneX, a global colocation provider. The facility reportedly has about 4.5 megawatts of power capacity, supporting digital infrastructure within the broader business park.
The seller was RREEF, a real estate investment manager affiliated with Germany-based DWS Group.
Industrial Investment Activity Is Returning
The sale reflects a broader pattern unfolding across the Seattle industrial market.
Industrial transaction volume in the region reached about $2.1 billion in 2025, representing the highest level of activity in roughly three years.
However, most of that activity has not come from massive warehouse portfolios. Instead, investors have been actively purchasing smaller or older industrial properties, similar to the Gateway North campus.
That trend suggests many investors see value in well-located industrial assets that can be repositioned, upgraded, or leased to a mix of tenants.
Smaller Industrial Spaces Are Driving Leasing Activity
Another notable trend highlighted in the report involves leasing demand.
Approximately 90% of industrial leases signed in the Puget Sound region last year were for spaces under 50,000 square feet.
This shift reflects changing tenant behavior.
Many businesses today are looking for smaller, flexible industrial spaces that can support:
- regional distribution
- service operations
- technology infrastructure
- light manufacturing
Rather than massive fulfillment centers, companies often prefer facilities that can serve specific local markets.
Properties like Gateway North — with multiple smaller buildings — tend to fit that need well.
Why Data Centers Are Becoming Part of Industrial Real Estate
The inclusion of a data center within the business park is another interesting detail.
Data centers are increasingly being integrated into traditional industrial campuses as demand for digital infrastructure grows.
Facilities supporting cloud services, artificial intelligence, and data storage require:
- stable power supply
- fiber connectivity
- secure industrial-style buildings
In many markets, industrial real estate is becoming a natural home for digital infrastructure.
That trend is beginning to influence investment decisions across the country.
Why This Matters for Boise Commercial Real Estate
Although this transaction occurred in the Seattle area, it highlights several themes that could also affect Boise commercial real estate.
Cities across the Mountain West share many similarities with Pacific Northwest markets — including population growth, expanding technology sectors, and increasing logistics demand.
From a Boise perspective, several insights stand out.
Industrial properties remain a top investment target
Investors continue focusing on warehouse and business park properties because they offer stable tenant demand and flexible uses.
Boise’s location as a regional logistics hub for Idaho and surrounding states makes industrial assets particularly attractive.
Smaller industrial spaces are in high demand
Many local businesses do not need massive warehouses. Instead, they look for 20,000 to 50,000 square foot facilities that can support distribution, service operations, or light manufacturing.
This type of space represents a large portion of the Treasure Valley industrial market.
Technology infrastructure is expanding
The presence of a data center inside a traditional business park highlights how technology infrastructure is becoming part of the industrial sector.
With Idaho’s growing semiconductor and technology ecosystem, Boise may see increasing demand for properties that support digital infrastructure and computing services.
Local Insight: Industrial Real Estate Is Evolving
Over the past decade, industrial real estate has transformed dramatically.
What once consisted mostly of warehouses and storage facilities now includes:
- logistics distribution hubs
- technology infrastructure
- research and production facilities
- service-oriented industrial space
Cities with growing populations and technology sectors are particularly well positioned to benefit from this evolution.
Boise continues to check many of those boxes.
My Take
Industrial real estate remains one of the most resilient sectors in commercial property markets.
The Seattle-area transaction shows that investors are willing to buy older, smaller industrial campuses if they are well located and have strong tenant occupancy.
For markets like Boise, the takeaway is clear.
Demand for flexible industrial space, technology-ready facilities, and logistics hubs is likely to remain strong as regional economies grow and supply chains evolve.
Investors who understand these trends may find significant opportunities across the Treasure Valley industrial market in the years ahead.
Mike Gioioso (joy-OH-so) has for 16+ years been helping companies of all sizes buy, build, and lease perfect places for business in greater Boise, Idaho and beyond.
www.streetsmartidaho.com
mike@streetsmartidaho.com
208-209-9166
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