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Saves you time. Saves you money. Makes you smarter.The News Tribune, Tacoma, WA -
Tacoma, WA -

DREW PERINE/THE NEWS TRIBUNE
One of the area’s top employers is DaVita, a health services company based in downtown Tacoma. It is looking for more office space, either here or elsewhere.

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DaVita looking for new offices, not necessarily in Tacoma
Published: May 7th, 2008 01:00 AM | Updated: May 7th, 2008 06:24 AM
DaVita – one of the area’s largest private employers – is searching for a new office building and not making any promises about staying in Tacoma.

The company was one of the early players in Tacoma’s downtown revitalization when it moved into the former Schoenfelds furniture building on South 15th Street and Pacific Avenue about a decade ago. The growing kidney dialysis company now employs more than 850 people spread out over five downtown buildings – and they’re running out of space.

Jim Hilger, DaVita’s vice president and controller, said Tuesday that the company is considering all of its options for future locations, whether they be in Tacoma, Pierce County or elsewhere.

The Fortune 500 company is based in El Segundo, Calif., though Tacoma is home to its main business office.

“I can’t give you any assurances on what we are going to do,” Hilger said. “I don’t have a preference, and we are not starting with a preference – that would be inappropriate.”

The company’s current lease expires in about three years. Hilger anticipates that DaVita will have a short list of locations within the next few months that could meet the company’s needs.

The news comes as Russell Investments, another major Tacoma employer located downtown, also is searching for a new headquarters site and considering options in and out of Pierce County.

The Tacoma-Pierce County Economic Development Board has led an effort to keep Russell Investments in the city. It has offered a package of economic and tax incentives for the company.

But DaVita is on the board’s radar as well.

The board and representatives from the City of Tacoma met with DaVita on Monday to discuss the company’s needs for space, its goals and site parameters.

“They are a major employer in Tacoma, and we value them tremendously,” said Derek Kilmer, the board’s business retention manager. “We’ve had conversations with them recently, and we want to keep them in Tacoma.”

Bob Levin, the private capital division manager with the city’s community economic and development department, said that some of the tools the city is hoping will retain Russell could apply to other companies.

“That was purposeful,” Levin said. “We need a robust economy that has a combination of small-, medium- and large-size employers.”

DaVita is looking for at least 200,000 square feet of office space with room to expand to 300,000 square feet and 700 to 1,000 parking spots, according to CB Richard Ellis, the real estate company representing DaVita. The Tacoma operations take up close to 200,000 square feet now.

By comparison, Russell Investments downtown headquarters is 227,000 square feet and the Wells Fargo building is 322,000 square feet.

A broker with CB Richard Ellis declined to comment on possible locations for the company.

Dominic Accetturo, a commercial real estate broker with GVA Kidder Mathews in Tacoma, said there are places for that size of a building in downtown, but DaVita would likely need to build it.

Levin said that DaVita has already met with several Tacoma developers.

But the company is considering all its options.

The work done here – the company’s accounting, Security and Exchange Commission reporting group, billing and IT operations – can be done anywhere, Hilger said.

“We like the Puget Sound area, and our (employees) are here, so we’d have to think very thoughtfully about moving that to somewhere else,” he added.

Hilger grew up in Tacoma and was chief financial officer with Pyramid Brewing before coming to DaVita almost three years ago. He’s part of a team that will make final recommendations to the company’s senior management and board of directors about where the company should locate.

Hilger said the City of Tacoma needs to do more to be attractive to employers and that he’s anticipating offers from other municipalities.

“The City of Tacoma will have to make a compelling case just like any other community has to when they want to attract or retain large employers,” he said.

Kelly Kearsley: 253-597-8573

blogs.thenewstribune.com/business


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