The Port of Olympia placed a new 20-year ground lease for the state's Print and Mail facility in Tumwater on its consent calendar for the commission's Nov. 9 meeting.

The deal with the Washington State Department of Enterprise Services (DES) covers 10.16 acres at 7510 New Market St. SW, where about 50 full-time state employees handle printing, mail, fulfillment and logistics operations. The commission meeting packet shows Port staff recommended approval.

The Port and the state first signed a lease for the site in 1979, covering 12.7 acres. DES approached the Port earlier in 2026 seeking a longer-term agreement. The state plans capital improvements estimated at $22.5 million and $24.9 million, including structural reinforcement, upgraded plumbing and electrical systems, and full HVAC modernization. A longer lease would let DES recover the value of those investments, according to the cover memo prepared by Mike Reid, the Port's director of community and economic development.

Rent jumps sharply

Under the current lease, DES pays $2,651.46 per month, or $31,817.52 per year. The new lease starts at $4,425.69 per month in December 2026 and climbs through a graduated schedule over the first four years:

  • 2027: $8,851.38 per month ($106,216 annually)
  • 2028: $13,277.07 per month ($159,324.84 annually)
  • 2029: $17,702.76 per month ($212,433.12 annually)

After the phase-in, rent continues rising in five-year blocks, reaching $25,731.63 per month ($308,779.57 annually) by the final years of the lease.

Sidewalks and frontage work required

The new lease shrinks the footprint from 12.7 acres to 10.16 acres. It also requires DES to build frontage improvements along the eastern, southern and western boundaries of the property, consistent with City of Tumwater engineering standards. That work must be finished within 60 months of the lease's effective date.

The lease becomes binding once both parties sign, the state Attorney General's office approves the form, and the Port commission ratifies it. Richard J. Bushnell, DES assistant director of real estate services, signed the state's side on Nov. 4.

The DES lease first appeared as an advisory item at the commission's Sept. 28 meeting. It moved to the consent calendar for Nov. 9, alongside approval of October 2026 bills and vouchers.

The same Nov. 9 meeting included a public hearing on the Port's draft 2027 proposed operating budget, capital investment plan and tax levy, presented by Executive Director Alex Smith and Director of Enterprise Services Brent Barnes.