“Pioneer Square has turned the corner,” declared William Justen, real estate manager of Samis Land Co. “There’s a lot of new businesses starting to come back in.”

Samis has made sizable investments in recent years in Pioneer Square, in hopes that the area will thrive in the new millennium. Samis’s Smith Tower, a $21 million renovation, was completed last year and is 100 percent leased.

Samis also finished renovating The Corona on Second Avenue and Terry Denny on First Avenue, both residential/retail buildings that are 100 percent filled. Both filled quickly, “which tells me that downtown housing is still very desirable,” said Justen. The buildings offer market rate housing.

In 2001, Samis will finish work on the Collins Building at Second and James. Justen is searching for a major retailer for the ground floor and has signed a law firm for the office space. In addition, Samis will finish work in May on the 465-stall Butler Parking Garage, and in April will complete work on a two-story building, The Florence, located between The Collins and Smith Tower. Samis is searching for a gallery for the Florence’s ground floor.

This year Samis also will finish work on the Washington Shoe building, a six-story office/retail structure in Pioneer Square, as well as a 125,000-square-foot distribution center for Federal Express on Airport Way South. The market in general has cooled considerably in the last year, Justen observed. “Certainly, we’ve seen the impact of the dot-coms, and that pressure was keeping the market a red-hot market. That’s certainly cooled down. A lot of sublease space has been given back.”

While the market is less frantic, residential developments have been well received, Justen said. “Downtown living is a real winner,” he said. “Residential is the most predictable and lowest risk. Office space, one has to be more cautious about.”

Justen said part of the credit for the new popularity of downtown living goes to the Growth Management Act and other government initiatives aimed at re-focusing growth in urban areas and preventing sprawl. Residents fed up with long traffic delays also see the benefit of living close to work.

While residential developments are consistent winners, he said his firm does not intend to pursue large retail components in its developments. Justen views retail as an amenity in larger projects.

While the red-hot market may be a thing of the past, Justen said steady growth should take its place — particularly in downtown and Pioneer Square.

“Anything in downtown Seattle that’s well thought-out and well designed is going to be successful,” he said. “I’m very bullish on the downtown core. Our business plan is to be a long term holder of property for stable income to support the Samis Foundation. We’re looking for a steady flow of income.”