Growth Market

The Inland Northwest’s burgeoning population, record-setting real estate market and low unemployment helped generate enviable retail trade growth in the region last year. Experts say they’re optimistic that trend will continue in 2006.

“We’ve had lots of homes built and sold, which always causes retail to perk up,” said Randy Barcus, chief economist at Spokane-based Avista Corp. “Furniture stores, appliance stores and so on always do very well when you have a building boom. And we certainly have that in both Spokane and Kootenai counties.”

Retail trade encompasses sales of food and beverages, clothing, automobiles and general merchandise. The category excludes costs of construction projects, materials, labor and related sales.

Barcus said retailers have plenty of reasons to be hopeful about 2006.

“The population’s been growing and we have 10,000 more people working that we did a year ago, 5,000 each in Spokane and Kootenai counties,” he said.

Rich Hadley, president of the Spokane Regional Chamber of Commerce, said growth in taxable retail sales shows “consumers are generally feeling positive about the local economy and their own prospects.”

Downtown Spokane should get a retail boost from the redevelopment of the former J.C. Penney store into condominiums, a health club and retailer Jos. A. Banks Clothier, said Robert Smith, general manager of River Park Square, across the street from the new project.

“We expect to see people moving in and new stores opening up in early spring or summer,” Smith said.

Meanwhile, the retail climate in Kootenai County looks promising, too.

In Coeur d’Alene, several developers are investing in upscale mixed-use projects that will add new boutiques, stores, redesigned restaurants and a luxuriously refurbished Coeur d’Alene Resort spa.

Dave Black, CEO of Spokane-based Tomlinson Black Commercial real estate, said, “We’re seeing North Idaho driving the entire economy of the Northwest, even Spokane, because people have discovered the quality of life Kootenai County has to offer.”

Added Black, “You’ve got to give Duane Hagadone and Marshall Chesrown a lot of credit,” referring to the owner of the Coeur d’Alene Resort and the developer of Black Rock and Kendall Yards, respectively. “They’re marketing this place to another niche and people are coming in their jets to get here – and that’s another good thing for this area.”