In March 2025, Valbridge Property Advisors | Inland Pacific Northwest had the opportunity to appraise the Youthful Horizons Physical Therapy office, a modern and energy-efficient facility located in the heart of Spokane Valley. This two-story, 21,740-square-foot multi-tenant office building was originally constructed in 2008 and features a unique combination of functional patient care spaces and sustainable building systems.

The main floor is dedicated to Youthful Horizons’ physical therapy practice, which includes a fully equipped indoor swimming pool, exercise rooms, and multiple training spaces designed to serve a wide range of patient rehabilitation needs. The ground floor has heated floors and tall ceilings, so the heat rises to heat the entire room. But what truly sets this building apart is its advanced mechanical infrastructure, designed with long-term energy efficiency in mind.

A Closer Look at the Building’s Sustainability Features

One of the most notable elements of the property is its open-loop ground source heat pump system. This system utilizes two dedicated water wells to draw water from the aquifer, which is then circulated through a heat pump to either warm or cool the building as needed. Radiant heat has been installed in the concrete floors on the main level and even extends to the adjacent outdoor sidewalks, ensuring consistent comfort during Spokane’s cold winters.

In addition to the geothermal system, the building is outfitted with a web-based automated heating and cooling control platform. Each room is zoned for independent control, with motion and audio sensors that detect occupancy and automatically adjust the climate settings. This smart system ensures that unoccupied areas are not unnecessarily heated or cooled, contributing to overall energy efficiency.

Balancing Efficiency with Cost 

Despite these innovations, the building’s mechanical systems have presented some trade-offs. While the geothermal system helps reduce energy consumption, the cost to maintain these high-tech components is significantly greater than for buildings with conventional forced-air HVAC systems. Over time, wear and tear on the original HVAC infrastructure has required substantial capital expenditures, especially as the equipment has reached the 15-year mark, slightly earlier than the expected 20-year to 25-year lifecycle of traditional forced-air systems.

According to maintenance records, HVAC-related expenses peaked between $2.84/sf and $4.02/sf in recent years due to necessary upgrades. The current service contract is approximately $1.00/sf/year—more stable, yet still above average when compared to similar office buildings in the region.

Utility Performance and Expense Analysis

In evaluating the building’s utility costs—which include electricity, gas, water, sewer, and trash—Valbridge reviewed both subject and comparable properties throughout Spokane Valley. While comparable buildings reported utility expenses ranging from $1.40/sf to $2.42/sf, the Youthful Horizons building performed notably well, with historical rates between $1.03/sf and $1.20/sf. This efficiency reflects the benefits of the building’s design and automated energy controls.

After analyzing several years of data, Valbridge concluded a stabilized utility expense of $1.25/sf, which is lower than the indicator average of $2.40/sf for similar properties. This cost-effective energy profile highlights the value of sustainable design when paired with proper system management.

The Valbridge Difference

The appraisal of the Youthful Horizons Physical Therapy office underscores the importance of understanding both the benefits and complexities of sustainable building systems. While cutting-edge mechanical systems can provide long-term savings and environmental advantages, they may also require more intensive and costly upkeep, particularly as components age.

By delivering a comprehensive appraisal rooted in real-world expense analysis and operational insight, Valbridge Property Advisors continues to provide trusted valuation solutions for properties at the intersection of innovation and practicality.