A 14,600-square-foot professional office building is being planned in Spokane Valley, where developer Jared Silvey says market demand for health care buildings is strong, despite the current higher costs of construction.

A $2.2 million medical office building shell will be constructed on a 1.4-acre site located at 15106 E. Sprague, which is at the southeast corner of Sprague Avenue and Progress Road. Construction is expected to begin in July and take about a year to complete. 

Building improvements for the interior are expected to cost another $2 million, for a total development cost of about $4.2 million, he says.

Interior construction work will create office and clinic space, examination rooms, and an ambulatory surgery center for medical or dental use for one tenant that has leased the entire space, Silvey says, although he declines to disclose the tenant's name.

"We're either smart or we're lucky, but we're pleased we're able to get it fully leased," he says.

Silvey is part of the ownership group behind the project, Spokane Valley-based Legacy Group Development LLC, which owns the land through a separate entity dubbed Sprague & Progress LLC. He also co-owns Spokane Valley-based Silvey Construction Inc., which is the contractor for the project.

Herath & Associates PC, of Otis Orchards, is the architect for the site plan and the building's exterior shell. A different architect will be selected for the interior improvement project, notes Silvey.

"We purchased that corner (of land) eight or nine years ago," he says. "We've always envisioned it for redevelopment."

The property was occupied previously by a retail complex where a diner, a tax service company, and a shoe repair store had operated. The complex has been demolished to make way for the new professional office space.

Silvey Construction has another project in the pipeline for a dental client in Spokane Valley, he says, declining for now to disclose additional details on that project.

"There's been a surprise that the market is as robust as it has been despite all the economic headwinds," says Silvey. "There's still a need for (health care) out there, and people are willing to build ... despite its significant cost."