The developer behind a proposed eight-unit flex warehouse park, at 9870 W. Flight Drive on the West Plains, is placing the project on hold following declining tenant interest due to higher interest rates, rising material costs, and uncertain market conditions this year. 

Flight Drive Business Park has been under consideration since 2025, says Chris Bornhoft, managing member of Bornhoft Developments — a trade name of Spokane-based Bornhoft LLC.

“We were seeing a lot of demand last year for this type of a product, and going into 2026, things have changed significantly,” Bornhoft says. “Demand has lessened quite a bit — enough to where we're taking a pause to try to figure out if this is really something that we want to kick off without having a meaningful tenant (presence) in tow.”

One potential tenant has expressed interest in 3,000 square feet of space at the 12,000-square-foot business park, but Bornhoft says he typically waits to break ground until half the available space has tenant commitments.

Some businesses find flex warehouse space attractive due to the versatility in both tenant type and construction, Bornhoft contends.

“You could have a gym next to an electrical contractor, next to a lighting store, next to a brewery, next to a plumber,” he says. “It’s like retail meets industrial, where you could have a forward-facing storefront but also have someone that just needs a shop with an office.”

Despite the flexibility offered by these units, Bornhoft says he has noticed similar properties that have been recently completed in Spokane and Spokane Valley that are struggling with tenant occupancy. International conflicts, such as the Iran war, have impacted construction material costs, and when coupled with higher interest rates and market uncertainty, many potential tenants are hesitant to expand or move into a new space currently, he says.

While Bornhoft waits for more favorable market conditions to break ground, foundational planning has already moved forward. Spokane-based Fusion Architecture PLLC has designed the site plans for Flight Drive Business Park. A general contractor and engineer haven't been selected yet but currently are under consideration.

An estimated construction value to develop the property is undetermined, Bornhoft says, adding that rising building material costs are expected to influence the design and construction timeline.

Starlen Properties LLC, a separate Bornhoft-owned entity, purchased the property for $280,000 in 2021, according to tax information on file with Spokane County. The 2-acre vacant property is situated west of the former Triumph Composite Systems Inc. building, located at 1514 S. Flint Road and north of a Goodwill Industries of the Inland Northwest store, at 9837 W. Flight Drive.

Bornhoft also is managing broker at Spokane-based SDS Realty Inc. The Flight Drive project and other Bornhoft Developments projects are not affiliated with his work at SDS, he clarifies.

As planned, the business park will consist of two adjacent buildings featuring eight 1,500-square-foot units. Potential tenants will have the opportunity to lease multiple adjacent units as needed, Bornhoft says. Each unit will include a small office space and a bathroom, and a heated industrial bay or shop space, he adds. 

Wide, high-clearance garage doors are planned to provide access to the shop spaces, site plans show. 

Ideal tenants include contractors, service businesses, trades companies, and light industrial users, he says.

“Think of it like an apartment for businesses, where you have an office, a bathroom, and then a shop area,” he explains. “It’s all finished, heated, and ready to go turnkey, and we don’t do a lot of tenant improvements of the space.”

Site plans also show over 50 parking spaces planned directly west of the two buildings. Parking also will accommodate larger trucks with enough space to make deliveries and turn around at the property.

Overall, the proposed business park will occupy about half of the 2-acre property, leaving the remaining space undeveloped, site plans show.

The development currently is on hold until additional interest in the project arises, Bornhoft says, noting that the project isn’t stopped or canceled. Upon completion, lease rates are expected to cost $1,950 per month plus expenses, he adds.

“Uncertainty creates a kind of cocoon, where people don’t go out and expand,” he says of the market. “If I had phone call after phone call coming in, if I had tenants driving by, or if I had brokers calling me, I would be more primed to just get going and take that risk, but it seems like everyone’s waiting. I’m not sure what they’re waiting for, but everyone seems to be waiting.”