During a recent Tacoma Economic Development Committee meeting, city officials engaged in a robust discussion about the future of Tacoma's economic landscape, focusing on the need for strategic shifts in development incentives and community identity.

One of the key topics was the city's identity and what it aims to export—be it ideas, artists, or green technology. Committee members emphasized the importance of defining Tacoma's unique character, particularly in areas like the downtown district, museum area, and theater district. They expressed a desire to collaborate with local institutions, such as the University of Washington Tacoma (UWT), to align efforts and enhance the city's appeal.

Another significant point of discussion was the effectiveness of the 2019 House Bill 1746, which allows for targeted sales and property tax incentives for developers. Committee members acknowledged that the current commercial real estate market has evolved since the bill's inception, leading to questions about its viability. They debated whether to amend the existing incentives or develop new strategies that better reflect current market demands, particularly in the industrial sector, which has seen a surge in demand.

The committee noted that the vacancy rate for downtown office spaces has dramatically increased from 9.8% in 2018 to 23.3% in 2024. This trend raises concerns about the practicality of incentivizing new office developments when existing spaces remain unoccupied. Instead, there is a growing consensus to pivot focus towards industrial and manufacturing sectors, which are currently thriving.

Officials also discussed the integration of a green economic development strategy into the broader economic framework, aiming to embed sustainability into Tacoma's growth plans. This approach seeks to ensure that environmental considerations are part of the city's economic development narrative.

As Tacoma navigates these discussions, the committee's insights will play a crucial role in shaping the city's economic future, aligning development strategies with community needs and market realities. The next steps will involve further collaboration with stakeholders to refine these strategies and ensure they resonate with Tacoma's evolving identity and economic landscape.