With an ever-shrinking labor pool and rising labor costs, companies are looking to newer markets for qualified employees. Joanie & Tchotchkes, a specialty-advertising firm recently located in Renton, Wash., just moved its corporate offices to Spokane, Wash. Anticipating hiring more than 100 employees at its new location, the company is impressed with not only the quality of life in the Spokane area, but also the quality of the employees.

Spokane office rental rates are also a tempting draw. Class A central business district space runs from $14.50 to $18.00 per square foot. Spokane's lifestyle and affordability seem to attract highly skilled workers. Reader's Digest recently named the city among the top 10 family-friendly cities in America.

Several British Columbia firms have moved their distribution centers to Spokane due in part to the state of Washington's tax breaks on any goods shipped out of the state by wholesalers. Far West, a Canadian outdoor clothing company, chose Spokane as its distribution site.

"This area offers efficient, accessible infrastructure so important to a distribution center," says Gary Pratt, president of Far West. "Plus, this is a great place for us to do business." Additional warehouse space will be available as construction on the $4.6 million distribution center in the Spokane Business and Industrial Park is completed.