An active Class A industrial warehouse development is advancing at 22421 E. Appleway, in Liberty Lake, between Interstate 90 and Appleway Avenue, says developer Steven Daines, designated broker at Spokane-based commercial real estate brokerage Daines Capital LLC.

Spokane-based Hospitality Associates Inc. is set to anchor a 65,000-square-foot warehouse and office building, where it will occupy 15,000 square feet of leased space to serve as a central warehouse for regional equipment and supplies, such as beds and furniture, Daines says.

Hospitality Associates is a third-generation family-owned hotel management and development company founded in 1959, according to the company's website.

Spokane Valley-based Divcon Inc. is the contractor and Coeur d'Alene-based JRA Architecture & Planning is the project applicant, according to permit information on file with the city of Liberty Lake. The project is valued at $7.9 million.

The entire facility is designed to accommodate up to eight tenants with unit sizes ranging from 4,800 square feet to 50,000 square feet. With a 30-foot ceiling height, the structure also is capable of second-story office space, expanding the total available square footage at the site up to 70,000, explains Daines.

The building is designed with a "retail feel," with large windows and freeway frontage providing high visibility from I-90. While not designated as a logistics center, the building includes multiple overhead and grade-level doors positioned throughout to support distribution, manufacturing, or high-technology tenants with shipping needs, he contends.

Grading at the property began in October, followed by vertical wall construction. Currently, roofing and wall installation is underway, he says. The warehouse project is expected to be completed later this year, Daines adds.

A second phase of the development is planned to the west of the warehouse for a proposed 100-room hotel, he notes.

In Spokane Valley, the commercial brokerage also is developing another industrial project at 4524 N. Barker Road, where two industrial flex warehouses valued at $2.5 million each are underway, says Melinda McCormick, marketing director at Daines Capital. 

Three steel warehouses previously were completed at the property. The three-unit, 11,700-square-foot commercial shell structures were constructed for $1.4 million each, according to information provided by Daines Capital.

Baker Construction & Development Inc., of Spokane, is the project applicant and general contractor, according to permit information on file with the city of Spokane Valley.

Crews began construction of the first phase in March 2025. Both warehouses are expected to be available for lease by summer 2026, McCormick says.

As previously reported in the Journal, two 18,000-square-foot buildings are planned at the site next year, she adds. A total of seven buildings will be available for industrial uses on-site.

—Erica Bullock