Sell Your Commercial Property In Tri-Cities, WA

Who rents in the Tri-Cities

The Tri-Cities of Kennewick, Richland and Pasco form the Kennewick-Richland metro area, which spans Benton and Franklin counties. Because the market crosses three cities and two counties, this profile uses metro-level Census data. The 2020–2024 American Community Survey counts 311,807 residents and 107,936 occupied homes in the metro. Of those, 33,948 (31.5%) are rented and 73,988 (68.5%) are owner-occupied. The median household income is $89,010.

That makes the Tri-Cities an ownership-heavy market. In the same ACS comparison, renters are 56.3% of households in Seattle, 44.2% in Tacoma and 41.2% in Spokane. Renter demand is concentrated in a smaller pool of apartments, and much of it comes from two federal anchors in and around Richland.

What drives demand

Pacific Northwest National Laboratory, the Department of Energy lab headquartered in Richland, reports 6,043 scientists, engineers and professional staff, $1.66 billion in annual spending and a total payroll of $789 million for FY2024, according to PNNL. Those are well-paid jobs, and new hires, postdocs and contract researchers often rent first.

The Hanford Site, north of Richland, is the larger employer. The Department of Energy describes a 580-square-mile cleanup site with more than 13,000 workers and an annual budget of about $3 billion. The FY2027 request includes about $1.945 billion for the Office of River Protection, which handles tank waste, and about $1.009 billion for Richland Operations. DOE notes that crews recently began retrieving waste from the 25th underground storage tank and are building the Waste Treatment and Immobilization Plant. Hanford’s headcount depends on how Congress funds that work each year, so leasing demand near Richland can shift with federal budgets.

Rents and affordability

The metro median gross rent, including utilities, is $1,284. HUD’s FY2026 Fair Market Rents for the Kennewick-Richland MSA are below Seattle-area levels but above the ACS median for units with two or more bedrooms:

The two-bedroom FMR is $254 above the metro median rent. Affordability is better here than in the larger Washington cities we cover, but not easy: 44.9% of renter households spend 30% or more of income on rent, and 21.0% spend half or more. Another 2,302 renter households have no computed burden, which usually means no cash rent or no reported income. Median household income of $89,010 compares with $85,884 in Tacoma and $70,064 in Spokane in the same ACS release, a gap that tracks the lab and Hanford payrolls, so households above the median have room to absorb modest increases. Lower-wage service workers have far less room.

The apartment stock

Apartments are a small part of the housing stock. Of 114,284 housing units in ACS table B25024, only 17,325 (15.2%) are in buildings with five or more units. Large complexes are rare: 6,100 units, or 5.3% of all housing, are in buildings of 50 or more. The 5+ stock breaks down as 4,177 units in 5–9 unit buildings, 3,667 in 10–19 unit buildings, 3,381 in 20–49 unit buildings and 6,100 in buildings of 50 or more. That means 45.3% of the 5+ unit stock is in buildings of 5 to 19 units, the size range where most privately held properties trade. Duplexes through fourplexes add 7,932 units.

Two other features stand out. Detached houses make up 65.9% of units, and mobile homes account for 9,436 units, or 8.3% of the stock, a much higher share than in the Puget Sound cities. Both compete with apartments for lower-income renters. The housing is also newer than elsewhere in the state, with a median year built of 1991. Units whose first certificate of occupancy is 12 or fewer years old are exempt from the state rent cap under RCW 59.18.710, so recently built complexes follow different rent rules from older buildings in the three cities’ established neighborhoods.

Property taxes in Benton and Franklin counties

Kennewick, Richland and West Richland are in Benton County, while Pasco is assessed by Franklin County, so a two-county portfolio deals with two assessors and two treasurers. Each county assessor values property at market value, revalues every year and physically inspects at least once every six years under RCW 84.41.041. Appeals go to the county board of equalization by July 1 or within 30 days after the value notice, whichever is later, or within a county-set window of up to 60 days, per RCW 84.40.038.

The Benton County Assessor explains an important point for owners. The 1% limit in state law caps how much more revenue each taxing district can collect from existing property each year. It does not cap any single parcel’s tax. When values rise across a district, the rate falls; in the assessor’s example, a city’s rate drops from $1.00 to $0.878261 per $1,000. A building whose value rises faster than its neighbors’ still pays more. Rates differ between Kennewick, Richland, West Richland and Pasco because each sits in a different mix of city, school, fire and port districts. In Benton County, the full year’s tax is due April 30, or in two halves on April 30 and October 31, according to the Treasurer.

When you sell, Washington’s graduated real estate excise tax usually falls on the seller. For 2026 closings, the state portion is 1.10% up to $525,000, 1.28% up to $1,525,000, 2.75% up to $3,025,000 and 3.0% above, plus local REET. On a $1.5 million sale, the state portion is about $18,255. The thresholds rise on January 1, 2027.

Landlord rules

• State rent cap. Washington’s rent stabilization law, in effect since May 7, 2025, limits increases to 7% plus CPI or 10%, whichever is lower, with 90 days’ notice and no increase in the first 12 months of a tenancy, per the Attorney General. The cap is 9.683% for 2026 and 10% for 2027.
• No local rent control. RCW 35.21.830 bars Kennewick, Richland and Pasco from setting their own caps.
• Deposits. Landlords must give an itemized statement and refund within 30 days of move-out under RCW 59.18.280, or risk owing the full deposit and up to twice that amount for intentional refusal.
• Nonpayment. A 14-day pay-or-vacate notice is required under RCW 59.12.030.

Check each city’s business license and any rental rules before listing, because local requirements differ between the three cities.

What this means if you own a building here

Tri-Cities apartment values depend heavily on federal spending. A buyer will ask how much of your tenant base works at Hanford, PNNL or their contractors and will compare in-place rents with the $1,284 metro median and HUD’s $1,538 two-bedroom FMR. Because apartments are only 15.2% of the housing stock, small buildings compete for renters with rented houses and mobile homes as much as with other apartments.

The state rent cap limits how fast an older building’s rents can catch up to market, which makes the 12-year exemption a pricing factor for newer complexes. Since there is no per-parcel tax cap, a buyer will also model property tax on the purchase price. Build an accurate net operating income from your actual rent roll and test pricing with our apartment building value calculator. If you plan to reinvest the proceeds, the 1031 exchange calculator helps with timing. Skyline Capital buys 5+ unit buildings in Kennewick, Richland, Pasco and West Richland, stabilized or distressed. Our seller page explains how we make offers.