Industrial developer Panattoni Development has wrapped construction on the first of two speculative warehouses at Tall Firs Industrial Park in Tehaleh, the master-planned community near Bonney Lake that is rapidly filling in with more than just rooftops. The newly finished building comes in at about 130,151 square feet on an 11.5-acre site, with a second warehouse of 86,092 square feet still on the drawing board.
Panattoni bought the two parcels at 14621 and 14719 170th Ave. E. from Brookfield, then brought in Synthesis as architect and Poe Construction as general contractor to get the park out of the ground. NAI Puget Sound Properties is handling leasing, and marketing materials show suites starting at roughly 7,400 square feet and scaling all the way up to full-building blocks, according to Panattoni.
As reported by CoStar on March 12, 2026, Panattoni is open to either leasing or selling the Tall Firs campus. The timing is bold. Unleased industrial inventory has been piling up in the south Puget Sound market, so this speculative project is arriving in a region where brokers and market trackers have already flagged rising availability.
What It Means For Tehaleh And Residents
Developers are pitching Tall Firs as more than just another set of loading docks. They say the industrial park will create local jobs and help shorten commutes for Tehaleh residents, a key selling point Brookfield and Panattoni leaned on when the project was first announced.
"The project provides more opportunity for residents to work in Tehaleh and live nearby," Panattoni said in its release, framing the park as Class A industrial product meant to support businesses in and around the community, according to Panattoni. In other words, the goal is fewer long drives on Highway 410 and more paychecks earned close to home.
Market Context: New Supply Meets Softening Demand
The regional backdrop is hard to ignore. Across the Puget Sound, industrial developers have a hefty pipeline of new projects either under construction or recently delivered, and Pierce County has shouldered a big share of that fresh supply.
Kidder Mathews' market review notes that vacancy and availability in Pierce County climbed as new industrial buildings delivered faster than tenants could absorb them, a dynamic that helps explain why many in the industry are watching to see how quickly Tall Firs fills up. According to Kidder Mathews, Pierce County vacancy moved higher through 2025 as new inventory came online.
Availability And Next Steps
With the first building now complete, Panattoni and its leasing team have put the space on the market and are actively promoting the two-building park to logistics, light-manufacturing and distribution users. The developer has signaled it is willing to either lease or sell the asset, giving it some flexibility in how the project ultimately pencils out.
According to CoStar, the pace of leasing over the next several months will give brokers a clearer read on how much demand there really is for industrial spaces in the 50,000 to 130,000 square foot range. For now, Tall Firs stands as another example of speculative industrial development pushing deeper into Pierce County's suburbs, with Panattoni and NAI Puget Sound Properties watching to see whether major tenants swoop in or whether the project simply adds to the region's available inventory.
The next round of public leasing moves at the campus is expected to serve as a key signal for where the south Puget Sound industrial market is headed next.
