Goodale & Barbieri’s Secrets to Success
Founded in 1937, Goodale & Barbieri is the Inland Northwest’s leading commercial real estate, development, and property management firm. Located in Spokane, their properties include some of downtown’s most prominent buildings. In fact, their commercial occupancy in downtown is outperforming national averages.
Vice President Alicia Barbieri attributes this success to the multi-generational relationships they’ve developed in the Northwest, allowing them to help companies grow. “We strive to be consistent and proactive in property management, which ensures high tenant satisfaction and retention. Many times, this leads to assisting tenants in acquiring equity in properties as partners.”
Real estate has always been cyclical, but work-from-home trends greatly accelerated during COVID, delivering a blow to office markets. Yet because the Inland Northwest is a highly desirable location, as seen in the population growth here during the pandemic, there’s been a positive trickle-down effect in the retail and services markets.
Retail has seen an amazing resurgence in downtown Spokane, especially in areas with high foot traffic. And although traditional office demand has fluctuated, there’s a growing demand for regional offices as businesses are able to decentralize operations.
Interest in flexible spaces continues to prevail as well. “While remote working surged during the last five years, so did the need for smaller offices as many remote workers lean back into separating work and their personal lives,” Barbieri said.
Barbieri believes that concerns about hybrid work and its impact on office space leasing have stabilized compared to even two years ago. “You have to be adaptable in real estate, and this includes office space use and layouts to accommodate hybrid work models and enhanced office environments.”
Goodale & Barbieri operates seven million square feet in Washington, Idaho, and Montana. Of note is the strong demand for healthcare, professional/business services, education, and government here in Spokane. Regional population growth, nationally recognized universities, high-quality and specialized health care, first-rate hospitality, diverse arts and entertainment offerings, and beautiful Riverfront Park have all been vital.
“Regional and national businesses are wanting to locate in downtowns for diverse offerings and to be near universities to attract and retain top talent. And then retail follows the people. The system supports itself,” Barbieri explained.
Revitalization projects help keep downtown a vibrant and attractive location for businesses. This is essential to the entire community, as downtown is the largest economic driver and tax base not only in the City of Spokane, but Spokane County as well. Barbieri states, “A vibrant downtown powers the local economy!”
In today’s challenging commercial real estate environment, it’s important to attract and retain tenants. Goodale & Barbieri does this in many ways, such as creative lease terms, flexibility in terms, or incorporation of services and/or amenities.
They’ve also found that building a sense of community by leveraging downtown events and tenant engagement initiatives is an added amenity most companies don’t know they’re looking for, but it helps bridge that connection.
Like society as a whole, tenants today expect easy communication and immediate service with the touch of a button. Goodale & Barbieri’s management and building services have leveraged and invested in technology to meet those expectations without losing the personal connection.
“Tenants have, and will always have, expectations regarding clean and safe spaces, especially downtown,” said Barbieri. “This can’t be done at the push of a button. We find it takes a good ol’ boots-on-the-ground approach.”
Due to their customer service and convenience offerings, Barbieri said they have many clients that have started in single offices, and as they grow, they want to lease at one of their managed properties.
Of course, the classic real estate saying “Location, Location, Location” still holds true. Location is something tenants will always value, which is why they often select a certain office, suite, building, or even block.
Clean, safe, and vibrant are the key factors in determining location. The downtown core in Spokane remains highly desirable due to its amenities, accessibility, and high foot traffic. Barbieri said this is evident in the five buildings they manage in the two blocks between the Historic Davenport and Nordstrom: Michael Building, Mystery Building, Empire State Building, Banner Bank Building, and Lincoln Plaza Building.
The growing North Bank of downtown is a strong area as well, with more parking being a perk. Their RLH building at 201 W. North River Dr. is adjacent to Riverfront Park and the Spokane River, offering expansive views. Their regional Hospital District is another hot area, which drives traffic to neighboring areas like the lower South Hill and downtown.
Many national and regional companies have bought Spokane companies, where they invest capital and continue to grow. “Spokane looks attractive and has good metrics compared to larger cities,” said Barbieri. “The Inland Northwest has great opportunity ahead!”
Barbieri’s advice to other brokers and property owners looking to maintain strong occupancy in mid-size markets like Spokane is to promote your properties, stay adaptable, be involved in your community, and look for ways to help tenants find success.