Commercial property in demand

May 14, 2006

By DARRELL L. BREESE

Frontiersman

MAT-SU - Rapid population growth has led to a rapid increase in the number of businesses in the Valley and, in particular, along the 10-mile Palmer-Wasilla Highway.

&#8220It's a stretch of road used by the locals,” Wasilla Realtor Kristan Cole said of why the road connecting Palmer and Wasilla is a popular destination for businesses. &#8220Traffic on the Parks and Glenn is people passing through. But the people who live in the core area of the Valley drive on the Palmer-Wasilla Highway every day.”

As a Realtor, Cole has helped many businesses purchase land along the road. But she is also a business owner who chose to locate her office on the road traveled by nearly 17,000

people a day.

&#8220I'm in a business where my office needs to be accessible to my clients,” Cole said. &#8220We looked at a site on the Parks Highway near the new hospital, but felt our current location was the better choice.”

Kristan Cole Realty is located approximately halfway between Palmer and Wasilla, which has proven to be beneficial to her employees.

&#8220We're dealing in real estate on both ends of the highway,” Cole explained. &#8220Being in the middle has made things more efficient for us.”

Another business that has recently opened along the highway is the Mattress Ranch, owned by Ted Sadtler.

&#8220It just made economic sense for us to build our store along the Palmer-Wasilla Highway,” Mattress Ranch store manager Jeremy Wing said. &#8220We considered four other locations in the Valley, and this was the best place for us to be. We're right in the middle of the population base we want to sell too, it was a perfect fit.”

Currently along the highway there are 18 properties available for either sale or lease designated as commercial.

In the last year, several new businesses have sprouted up along the popular road. The biggest being Home Depot. There are additional plans in the works to construct a 12-plex movie theater on the Knik-Goose Bay Road end and a Wal-Mart on the Palmer end of the road.

Commercial property values have risen in recent years, and there are fewer large parcels remaining.

&#8220The cost of the land can range from $3 to $12 a square foot for a commercial property,” Cole said. &#8220It all depends on the size of the lot, the availability of utilities such as water and sewer, and the cost to develop the land.”

Despite the recent growth along the road, Cole believes that the price is at a plateau.

&#8220Things were crazy in the market the last two years,” she said.

&#8220Right now, they have settled down a little. But as long as the population continues to grow the demand for property on the road will go up.”

Contact Darrell L. Breese at 352-2267 or at darrell.breese@ frontiersman.com.