Happy returns for economy too as service members return to JBLM

South Sound Economy: As service members redeploy, many businesses almost as happy to see them as family

ROLF BOONE; Staff writer • Published July 30, 2010

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Business at South Sound real estate agencies, car dealerships and furniture stores is picking up as more soldiers return from deployments to Iraq and Afghanistan, which began last year.

Of the 18,000 soldiers sent to the war zones, about 6,500 have returned to Joint Base Lewis-McChord; 11,000 more are expected by early October, base spokesman Joe Piek told The Olympian this month.

That’s good news for South Sound military families wanting to welcome home family members, and it likely means a welcome boost to South Sound businesses in a slower economy.

Chris Hubbard, a signal systems support specialist with the Army, was shopping for a home in Lacey’s Horizon Pointe subdivision Thursday with his wife, Ashley, and son, Marcus. Hubbard, 24, returned to the area in May after spending a year in Kuwait, and the couple since have been renting a house in the same neighborhood. He recalled that during a previous return home from Afghanistan, he bought electronics and toys, but this time he has paid down car debts and spent money on a family vacation to Oregon, in addition to possibly buying a house.

“I wanted to improve the things we had this time and solidify our financial standing,” he said.

South Sound real estate professionals such as Jason Peterson, who works almost exclusively with military families, say they are getting busier showing homes to prospective buyers with military backgrounds. Those in the military still can qualify for zero-down loan programs and low mortgage rates, but unlike the civilian population, they are not facing layoffs or pay decreases, Peterson said.

Peterson works for Abbey Realty and is affiliated with a privately run website called Lewis-McChord.com, a starting point for many military families looking for information about housing or other services in the region. JR Gehrmann, who developed the site in 1999 as FortLewis.com, said there hasn’t been a dramatic increase in business through the site, although it is getting busier and more military families are requesting information.

Thurston County home sales through June of this year are up 13 percent from the same period a year ago, according to Northwest Multiple Listing Service data.

Rental activity has increased, too, said Andrew Barkis, co-owner of Hometown Property Management of Olympia, a business that manages more than 900 homes in South Sound. This week, the business has received 26 rental applications, 23 of them from military families, he said.

“It’s very real,” he said about the economic effect the military has on the region. “It’s a significant segment of our overall client base.”

GOT TO HAVE A CAR

Car dealerships also have experienced an uptick in business, said Alicia Nelson, executive manager for Olympia Auto Mall. Although no data are available, the military’s effect on the car business was discussed at a recent meeting of the Auto Mall’s 11 car dealerships.

“The dealers are seeing more military sales in our area,” she said. Sales at the Auto Mall are up 8 percent through July from the same period a year ago, Nelson said.

Hawks Prairie Home Furnishings in Lacey has been busy selling mattresses, living-room sets and dining-room sets to those in the military, owner Jeff Olson said. Some need only a TV stand, but others are getting a whole house full of items, he said.

“They are a huge part of our business,” Olson said about members of the military. “We would have a hard time staying in business if they went away.”

NEGATIVE EFFECTS

Troop movements, though, can result in a slower period of activity for some businesses.

John Huddleston, who operates 417 mini-storage units as part of Burnett Center Office and Storage in Yelm, was busier when troops were being deployed and needed a place to put their stuff. Now they’re coming home and emptying them out, he said.

“Folks have come back and are taking their furniture out for new endeavors,” Huddleston said. “As people complete their assignments and rotate on, new ones will take their place.”

Of the 417 storage units there, 48 to 50 are available, up from a low of 38, he said.

Rolf Boone: 360-754-5403 rboone@theolympian.com www.theolympian.com/bizblog

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