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Category: Tacoma

Tacoma Business Journal coverage

  • 7,000 Service Members a Year Go Through TAP at JBLM — Tacoma’s Hidden Talent Pipeline

    Every year, approximately 7,000 service members cycle through the Transition Assistance Program (TAP) at Joint Base Lewis-McChord. They’re leaving active duty with security clearances, leadership experience, technical certifications, and the kind of disciplined work ethic that hiring managers say they want but can’t find. Most Tacoma employers don’t even know this talent pipeline exists — and the ones who do aren’t doing enough to capture it.

    The Scale of JBLM’s Talent Output

    Joint Base Lewis-McChord is the largest military installation on the West Coast and one of the most deployable in the U.S. military. It’s home to I Corps, the 7th Infantry Division, 1st Special Forces Group, the 62nd Airlift Wing, and dozens of smaller units. The base population — active duty, reservists, civilian employees, and family members — exceeds 100,000 people.

    The roughly 7,000 annual TAP participants represent a fraction of total base population, but they’re a highly concentrated talent cohort: mid-career professionals (typically ages 25-45) with verified backgrounds, many holding active security clearances, and most possessing technical skills in logistics, information technology, mechanical systems, healthcare, aviation, or communications.

    According to Department of Defense transition data, approximately 60% of separating service members intend to remain within 50 miles of their last duty station. For JBLM, that means the majority of these 7,000 annual transitioners plan to stay in the Tacoma/Pierce County/South Sound region. They’re not theoretical talent — they’re your future employees, and they’re already here.

    What TAP Participants Bring to the Table

    Military-to-civilian skill translation has always been the core challenge, but the skills themselves are substantial. A Staff Sergeant (E-6) with eight years of service has typically managed teams of 8-20 people, maintained multi-million dollar equipment, operated under strict compliance and documentation requirements, and demonstrated sustained performance under high-pressure conditions.

    More specifically relevant to Tacoma’s economy: JBLM’s unit composition produces heavy concentrations of logistics and supply chain professionals (critical for the Port of Tacoma corridor), IT and cybersecurity specialists (relevant to the growing tech-adjacent sector), healthcare workers (medics, nurses, and admin staff), and skilled trades (HVAC, electrical, vehicle maintenance, and construction).

    The WorkForce Central (Pierce County’s workforce development council) has programs specifically designed to help employers connect with transitioning military talent, but utilization rates remain low among small and mid-size businesses.

    The Security Clearance Advantage

    This might be the most undervalued asset in the entire pipeline. A current Top Secret or Secret clearance takes 6-18 months and tens of thousands of dollars to obtain through the investigation process. Transitioning service members bring active clearances that remain valid for a period after separation — for defense contractors, government agencies, and the growing number of civilian companies working in regulated environments, this is an immediate cost savings and time-to-productivity advantage.

    Pierce County hosts multiple defense contractors and government-adjacent firms that require cleared personnel. For these employers, each TAP cycle at JBLM represents a fresh cohort of pre-cleared candidates they don’t have to sponsor through investigation.

    Why Tacoma Employers Are Missing This

    The gap between available military talent and local employer engagement has several causes. Many Tacoma businesses — particularly in sectors like construction, logistics, and professional services — don’t have established military hiring pipelines. They recruit through Indeed, word of mouth, and staffing agencies, completely bypassing the base-adjacent talent ecosystem.

    The TAP program itself, while improved from its early iterations, still defaults to resume-writing workshops and generic career fairs rather than direct employer matching. Service members going through TAP often don’t know which local companies are hiring for roles that match their skills, and local companies don’t know when clearance-holding logistics specialists or IT professionals are becoming available.

    What Smart Operators Are Doing

    The companies winning this talent competition are the ones engaging early — before separation, during the 12-month transition window. Programs like the DoD SkillBridge initiative allow service members to intern with civilian employers during their final 180 days of active duty, essentially providing six months of “free” labor (the military continues to pay their salary) while giving the employer a trial period with a potential permanent hire.

    Local employers including logistics companies along the Port corridor, healthcare systems like MultiCare and CHI Franciscan, and trades contractors have begun developing SkillBridge partnerships with JBLM. But the program is underutilized relative to its potential — there’s room for dozens more Pierce County employers to participate.

    The veteran employment ecosystem in Pierce County also includes organizations like American Corporate Partners, Hire Heroes USA, and the Washington State Department of Veterans Affairs employment programs, all of which serve as connectors between transitioning talent and local employers.

    The Economic Development Angle

    For Tacoma’s economic development positioning, JBLM’s annual talent output is a competitive advantage that few metros can match. When a company evaluates where to locate operations, workforce availability is typically the number-one or number-two factor. Tacoma can offer something unique: a reliable, annually-replenishing pipeline of disciplined, technically-skilled, pre-screened professionals who want to stay local.

    This isn’t a one-time recruitment effort — it’s a structural feature of the labor market that refreshes every year as new service members transition out. For workforce-dependent industries like logistics, healthcare, manufacturing, and professional services, this annual infusion of talent reduces one of the biggest barriers to growth: finding qualified people.

    FAQ

    How many service members transition out of JBLM annually?

    Approximately 7,000 service members go through the Transition Assistance Program (TAP) at Joint Base Lewis-McChord each year, representing a concentrated cohort of mid-career professionals with technical skills and leadership experience.

    What percentage of transitioning service members stay in the Tacoma area?

    Department of Defense data indicates approximately 60% of separating service members intend to remain within 50 miles of their last duty station, meaning the majority of JBLM transitioners plan to stay in Pierce County/South Sound.

    What is the SkillBridge program and how can employers participate?

    DoD SkillBridge allows service members to intern with civilian employers during their final 180 days of active duty while the military continues paying their salary. Employers get a six-month trial with a potential permanent hire at zero salary cost during the internship period.

    What skills do JBLM separating service members typically have?

    JBLM produces heavy concentrations of logistics/supply chain professionals, IT/cybersecurity specialists, healthcare workers, skilled trades (HVAC, electrical, construction), aviation maintenance technicians, and leadership-experienced managers across all fields.

    How do security clearances benefit local employers?

    Active security clearances cost $10,000-$100,000+ and 6-18 months to obtain. Transitioning service members bring active clearances that remain valid after separation, providing immediate value to defense contractors and government-adjacent firms without sponsorship costs.

  • Mayor Anders Ibsen Is a Working Real Estate Broker — What That Means for Tacoma Business

    Tacoma has a mayor who still holds an active real estate license. Anders Ibsen isn’t a career politician who studied policy in grad school — he’s a working broker who understands cap rates, entitlement risk, and why a six-month permitting delay kills a deal’s internal rate of return. For operators trying to build, develop, or expand in Tacoma, this matters more than any policy white paper.

    Who Anders Ibsen Actually Is

    Ibsen was elected Mayor of Tacoma in November 2023, taking office in January 2024. Before that, he served on the Tacoma City Council representing District 1 (North End, Old Town, the waterfront) beginning in 2017. His professional background is in commercial real estate — he’s worked as a broker in the South Sound market, which means he’s personally experienced the friction points of development from the private-sector side.

    According to City of Tacoma official records, Ibsen has consistently prioritized housing production, economic development, and streamlining city processes that create barriers to investment. This isn’t performative — it comes from direct experience watching deals fall apart because of bureaucratic delay.

    Why a Broker-Mayor Changes the Permitting Environment

    Most city executives come from law, public administration, or community organizing backgrounds. They understand policy intent but not execution friction. A mayor who has personally waited for a conditional use permit, who has explained to a client why their timeline slipped by four months, who has watched carrying costs eat project margins while plans sat in review — that mayor understands what’s actually broken in the development pipeline.

    Under Ibsen’s leadership, the Planning and Development Services department has been directed to reduce friction in the permitting process. This includes expanded pre-application conferences (so developers know what they’re dealing with before spending money on full plan sets), clearer checklists for common project types, and an emphasis on parallel review rather than sequential review for multi-department permits.

    The Practical Implications for Business

    If you’re pulling permits in Tacoma right now, here’s what the Ibsen administration means practically:

    First, there’s genuine executive-level interest in removing process bottlenecks. When the mayor’s office gets feedback that a particular review step is creating unnecessary delay, it gets attention — not because of political pressure but because the mayor personally understands the cost of delay in dollar terms.

    Second, the administration views development as economic development rather than a necessary evil to be managed. This philosophical orientation filters down through department heads and line staff. The default posture is “how do we make this work” rather than “what reasons can we find to slow this down.”

    Third, Ibsen’s real estate background means he speaks the same language as operators. When developers bring concerns to the mayor’s office, they don’t have to translate from business terms to policy terms. The conversation starts at a level of shared understanding that’s rare in municipal government.

    Housing Production Focus

    One of Ibsen’s central priorities is housing production — getting more units built, faster, at various price points. Pierce County’s housing shortage is well-documented: population growth has consistently outpaced housing construction for years, driving up rents and home prices for working families.

    The City Council, under Ibsen’s influence, has advanced zoning reforms including middle housing allowances in previously single-family zones, consistent with Washington State HB 1110 requirements. These reforms don’t just allow density — they’re designed to make density financeable by ensuring that the permitting path for duplexes, triplexes, and fourplexes is clear and predictable.

    What This Means for Tacoma’s Competitiveness

    Cities compete for development capital. Every dollar has options — it can go to Tacoma, to Lakewood, to Federal Way, to Olympia, or out of state entirely. The permitting environment is one of the top three factors (along with land cost and market demand) that determines where development capital deploys.

    Having a mayor who personally understands this competition — who knows that a developer choosing between two sites will pick the one with the faster, more predictable entitlement path — gives Tacoma a structural advantage. It’s not that Tacoma’s permitting is perfect (no city’s is), but the direction of travel is clearly toward less friction, faster timelines, and more predictable outcomes.

    For operators already in Tacoma, this means your expansion plans face a friendlier environment than they would have five years ago. For operators considering Tacoma, it means the city is actively working to earn your investment rather than passively accepting whatever happens to show up.

    FAQ

    What is Mayor Anders Ibsen’s professional background?

    Anders Ibsen is a commercial real estate broker who served on the Tacoma City Council from 2017 before being elected Mayor in November 2023. His professional background gives him direct understanding of development economics, permitting friction, and investment timelines.

    How has the permitting process changed under Ibsen’s administration?

    The administration has expanded pre-application conferences, created clearer checklists for common project types, and emphasized parallel review rather than sequential review for multi-department permits, all aimed at reducing process friction and timeline uncertainty.

    What housing reforms has Tacoma implemented recently?

    Tacoma has advanced middle housing zoning reforms allowing duplexes, triplexes, and fourplexes in previously single-family zones, consistent with Washington State HB 1110. These reforms create clear, predictable permitting paths for missing middle housing development.

    Is Tacoma’s permitting faster than Seattle’s?

    While direct comparison depends on project type and complexity, Tacoma’s smaller scale, less overburdened review staff, and current administration’s pro-development orientation generally result in faster, more predictable permitting timelines for comparable project types.

    What should developers know before starting a project in Tacoma?

    Take advantage of the pre-application conference process — it’s genuinely useful in Tacoma, not just a formality. Engage Planning and Development Services early, be clear about your project timeline, and you’ll find a staff orientation that defaults to problem-solving rather than gatekeeping.

  • Tacoma CBD Office Vacancy at 18.5% vs Seattle at 35.6% — The Cost-Basis Story for Operators

    Here’s a number that should get every commercial real estate operator’s attention: Tacoma’s central business district office vacancy sits at approximately 18.5%, while Seattle’s downtown vacancy has ballooned past 35%. If you’re an investor, a value-add fund, or an adaptive reuse developer, Tacoma’s cost basis tells a completely different story than what you’ll find 30 miles north — and the spread is widening.

    The Vacancy Gap Is Structural, Not Cyclical

    Seattle’s office market collapse isn’t a blip. The combination of remote work permanence at major tech employers, the departure of companies like Amazon shifting workers to other metros, and a 2019-era construction pipeline that delivered millions of square feet into a market that no longer needs them has created a structural oversupply problem. The City of Seattle’s own economic data shows office-dependent foot traffic downtown remaining 30-40% below pre-pandemic levels.

    Tacoma is different. The CBD never had the same concentration of tech-sector office tenants that drove Seattle’s bubble. Tacoma’s tenant base is more diversified: government agencies (federal, state, county, and city offices), healthcare systems, law firms, financial services, and the military-adjacent professional services sector tied to Joint Base Lewis-McChord. These are tenants that require in-person operations and aren’t going fully remote.

    The Cost Basis Story

    According to data from CoStar and local brokerage reports, Class B office space in Tacoma’s CBD trades at $150-$250 per square foot — roughly 40-60% below comparable Seattle CBD product. Lease rates follow the same pattern: $22-$32 per square foot full-service in Tacoma versus $38-$55+ in Seattle’s core.

    For adaptive reuse operators, this cost basis creates a fundamentally different project math. Converting a 50,000 SF Class B office building to mixed-use (ground floor retail, upper floors residential or creative office) in Tacoma means acquiring the asset at a fraction of what the same conversion costs in Seattle, while serving a market with genuine demand for housing and experiential retail.

    The City of Tacoma Planning and Development Services department has been actively encouraging adaptive reuse through streamlined permitting for conversions and the Multi-Family Tax Exemption (MFTE) program that provides 8-12 year property tax exemptions for qualifying residential projects in designated areas including downtown.

    What’s Already Converting

    Tacoma’s adaptive reuse wave isn’t theoretical — it’s happening. The Stadium District and downtown core have seen multiple conversions of older office and commercial buildings to residential, boutique hospitality, and mixed-use projects over the past five years. The economics work because the acquisition cost is low enough that conversion costs (typically $80-$150 PSF for office-to-residential depending on mechanical systems) still produce viable total project costs.

    The Tacoma downtown submarket benefits from genuine walkability, proximity to the University of Washington Tacoma campus, Sound Transit Link light rail connectivity, and a restaurant/entertainment scene that has matured significantly since 2018. These are the demand drivers that make conversions pencil — tenants and residents actually want to be there.

    Why the Spread Will Widen

    Seattle’s vacancy problem is self-reinforcing. As buildings empty, ground-floor retail suffers, which reduces foot traffic, which makes remaining tenants less likely to renew. The tax base erodes, leading to service cuts that further reduce downtown’s attractiveness. Seattle’s CBD is entering a doom loop that will take years to stabilize.

    Tacoma, conversely, has natural demand floors. Pierce County government operations aren’t leaving downtown. The federal courthouse isn’t relocating. The healthcare systems serving South Sound aren’t going remote. This institutional demand provides a vacancy floor that Seattle’s tech-dependent market lacks.

    Additionally, Pierce County population growth continues to outpace available housing supply, creating sustained residential conversion demand. The Puget Sound Regional Council projects continued in-migration to Pierce County through 2040, driven by relative affordability compared to King County.

    The Operator Playbook

    For CRE operators looking at Tacoma, the playbook is straightforward: acquire Class B or C office assets in the CBD or Stadium District at current basis ($150-$250 PSF), evaluate adaptive reuse feasibility (the City’s permitting team is responsive and experienced with conversions), and target the residential/mixed-use end state that the market actually demands.

    The risk is low relative to Seattle. You’re not buying at a $400+ PSF basis hoping that tech workers return to offices. You’re buying at a basis that works even if the property stays partially office — and becomes highly profitable if you convert to the higher-demand use.

    Tacoma isn’t Seattle’s cheaper alternative. It’s a market with better fundamentals, lower basis, diversified demand, and a local government that actively supports adaptive reuse. The 18.5% vs 35.6% vacancy spread is the headline, but the real story is what it tells you about where the smart money should deploy next.

    FAQ

    What is Tacoma’s current CBD office vacancy rate compared to Seattle?

    Tacoma’s central business district office vacancy sits at approximately 18.5%, while Seattle’s downtown vacancy exceeds 35%. This spread reflects structural differences in tenant composition rather than a temporary market fluctuation.

    What incentives does Tacoma offer for adaptive reuse projects?

    The City of Tacoma offers the Multi-Family Tax Exemption (MFTE) program providing 8-12 year property tax exemptions for qualifying residential projects in designated areas, streamlined permitting for office-to-residential conversions, and an experienced planning department that actively supports adaptive reuse development.

    What does Class B office space cost in Tacoma versus Seattle?

    Class B office space in Tacoma’s CBD trades at approximately $150-$250 per square foot, which is 40-60% below comparable Seattle CBD product. Lease rates in Tacoma run $22-$32 per square foot full-service versus $38-$55+ in Seattle’s core.

    Why is Tacoma’s vacancy rate more stable than Seattle’s?

    Tacoma’s tenant base is diversified across government agencies, healthcare systems, law firms, and military-adjacent professional services — sectors that require in-person operations and aren’t adopting full remote work. This creates a natural demand floor that Seattle’s tech-dependent market lacks.

    What types of adaptive reuse projects work best in Tacoma’s market?

    Office-to-residential conversions and mixed-use projects (ground floor retail, upper floors residential or creative office) show the strongest economics. The low acquisition basis ($150-$250 PSF) combined with conversion costs of $80-$150 PSF produces viable total project costs in a market with genuine housing demand.

  • BNSF/NS Joint Service Cuts 3 Days Off Tacoma-to-Chicago Transit: What It Means for Local Shippers

    If you ship anything through the Pacific Northwest, the math just changed. The BNSF and Norfolk Southern joint intermodal service connecting the Northwest Seaport Alliance terminal in Tacoma to Chicago now cuts three days off transit compared to legacy routing. For Tacoma-based shippers, manufacturers, and third-party logistics operators, this isn’t a press release — it’s a structural cost reduction that changes where goods move and why.

    What the Joint Service Actually Does

    The Northwest Seaport Alliance (NWSA), which operates the marine cargo facilities across Tacoma and Seattle, has long positioned the gateway as a faster alternative to the congested ports of Los Angeles and Long Beach. The BNSF/NS intermodal partnership makes that positioning concrete: containers arriving at the Husky Terminal or Washington United Terminal in Tacoma can now reach Chicago in approximately four days, versus the seven-day benchmark that trucking-heavy or single-carrier rail options historically delivered.

    This works because BNSF handles the western leg from Tacoma through its mainline over Stevens Pass and across the northern tier, then hands off to Norfolk Southern’s eastern network at interchange points. The result is a seamless intermodal move that doesn’t require repositioning or drayage between disconnected terminals.

    Why Three Days Matters More Than You Think

    Three days isn’t just about speed — it’s about inventory carrying cost, warehouse utilization, and contractual delivery windows. For a mid-size Tacoma distributor shipping 200 containers per year to Midwest distribution centers, three days off transit means:

    Reduced safety stock requirements at the destination DC. When transit is predictable and shorter, you don’t need to warehouse as much buffer inventory. For goods with a landed cost of $50,000 per container, that’s real working capital freed up across the supply chain.

    Tighter compliance with retailer delivery windows. Major retailers penalize late deliveries with chargebacks that can run 3-5% of invoice value. Faster, more reliable transit directly reduces chargeback exposure.

    According to Port of Tacoma data, the NWSA handled approximately 3.5 million TEUs in 2023. Even a fractional shift in modal choice driven by this service improvement represents significant volume.

    The Tacoma Advantage Over LA/Long Beach

    The Southern California ports have dealt with chronic congestion, labor disputes, and drayage bottlenecks for years. Tacoma offers a fundamentally different operating environment: shorter vessel transit from major Asian manufacturing hubs (one to two days less sailing time from key ports in Japan, South Korea, and northern China), less terminal congestion, and direct on-dock rail access at multiple NWSA terminals.

    The BNSF/NS joint service amplifies this. A shipper routing through Tacoma instead of LA/LB to reach Chicago now saves time on the water AND time on the rail. The total door-to-door differential can be five or more days depending on origin port and final destination.

    Who Benefits in Tacoma

    The immediate beneficiaries are the freight forwarders, NVOCCs, and 3PLs already operating in the Tacoma logistics corridor along the Tideflats. Companies with warehouse operations near the Port of Tacoma terminals — particularly along Port of Tacoma Road, Taylor Way, and the industrial zones east of I-5 — gain the most from reduced dwell times and faster container turns.

    But the secondary effects matter too. Faster rail service makes Tacoma more attractive for distribution center siting decisions. Companies evaluating where to place Pacific Northwest DCs now have a stronger reason to choose Pierce County over alternative locations that lack direct intermodal rail access.

    The Pierce County Economic Development department has been marketing the logistics corridor as a competitive alternative to King County’s increasingly expensive industrial real estate. This rail improvement gives them a tangible differentiator.

    Infrastructure Context

    This service improvement doesn’t exist in a vacuum. BNSF has invested heavily in capacity improvements along its northern transcontinental mainline, including siding extensions and signal upgrades that improve fluidity for intermodal trains. Norfolk Southern’s eastern network investments in the Heartland Corridor and other capacity projects mean the Chicago interchange works without creating new bottlenecks.

    Locally, the NWSA’s ongoing terminal modernization — including the T-5 improvements in Seattle and continued investment in Tacoma’s Husky Terminal — ensures that vessel-to-rail transitions happen efficiently. The NWSA capital investment program has committed hundreds of millions to exactly these kinds of intermodal connection improvements.

    What Operators Should Do Now

    If you’re a Tacoma-based shipper currently routing through LA/LB to reach Midwest or East Coast markets, run the numbers on rerouting through the NWSA gateway with the BNSF/NS joint service. The per-container savings on transit time, reduced inventory carrying cost, and improved delivery reliability may justify shifting volume — even if the ocean freight rate differential isn’t immediately favorable.

    For operators considering expanding or relocating distribution operations, the Pierce County logistics corridor now offers a combination of available industrial land (at prices well below King County), direct intermodal rail access, and faster transit times to the nation’s largest consumer markets. That’s a combination you won’t find at LA/LB anymore.

    FAQ

    How much faster is the BNSF/NS joint service compared to previous options?

    The joint service cuts approximately three days off intermodal transit from Tacoma to Chicago, bringing the total to roughly four days compared to the previous seven-day benchmark for single-carrier or truck-heavy routing.

    Which terminals in Tacoma connect to this rail service?

    The Northwest Seaport Alliance operates multiple terminals in Tacoma with on-dock or near-dock rail access, including Husky Terminal and Washington United Terminals. Containers can move directly from vessel to intermodal rail without requiring extended drayage.

    Is this service available to all shippers or only large-volume accounts?

    The BNSF/NS intermodal service is available through freight forwarders and intermodal marketing companies (IMCs) that book capacity on the service. Both large-volume and smaller shippers can access it through their existing logistics providers.

    How does Tacoma’s rail transit compare to shipping through LA/Long Beach?

    Tacoma offers one to two days less ocean transit from key Asian ports, plus the faster rail service. Total door-to-door savings versus LA/LB routing to Chicago can be five or more days when combining shorter ocean transit with the improved rail schedule.

    What types of cargo benefit most from this service?

    Time-sensitive consumer goods, retail inventory subject to delivery window penalties, perishable goods requiring faster transit, and any cargo where inventory carrying costs are significant relative to freight spend. High-value electronics, apparel, and food products see the strongest ROI from faster rail service.