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| October 10, 2014 |
Apartment Fundamentals
(Almost) Rock Solid
Seattle's multifamily market is firing all cylinders, with more than 9,600 apartments completed since January 2013 in Downtown alone. But is the market as solid as most people believe? That's why we're excited to be holding our Seattle Multifamily Summit on Oct. 29, starting at 7:30am.
Yes, says Mack Urban senior managing director TJ Lehman (left, snapped at a previous Bisnow event with Cairnscross & Hempelmann finance partner Matt Hanna). TJ, who'll be speaking at our event, says that even though the market will hit some pockets of turbulence as submarkets absorb short periods of oversupply, “we think that over the long-term, Seattle's competitive advantages are growing, not diminishing." The biggest concern: construction costs are rising faster than rents.
 Mack Urban's been quite active lately in developing apartments in Seattle. The company's Harbor Urban, along with UP Pacifica Investors and AREA Property Partners, recently finished Velo in Fremont (pictured), which includes 165 apartments and four live-work units on the ground floor designed to cater to creative entrepreneurs. The company is also currently at work on Ray, a 137-unit multifamily property in Fremont, which is within walking distance of the Silicon Canal. Hear more from TJ and other top housing experts at our Seattle Multifamily Summit on Oct. 29 at the Four Seasons Seattle. Great networking starts at 7:30am. Sign up here! |
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A Landlord's Market, But...
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Those last, lingering doubts that Seattle's office market still doesn't have its mojo back can be put to rest: as of the end of Q3, vacancy dropped so low (11.1%) that the city has the fourth-lowest rate in the country, JLL VP Joe Gowan tells us. Only NYC, Portland, and San Francisco can boast a lower rate. The market's tilting toward landlords, Joe says, but that doesn't mean any landlord with availability can assume it's still in the game. Tenant needs are changing—especially in a tech-heavy, Millennial workforce market like Seattle—so landlords can't assume anything. Many major buildings have been revampe—or soon will be—to provide amenities tenants are demanding. |
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Also, Joe says, large blocks of space are in short supply in the Downtown core of Seattle, with just one block of 100k SF currently being marketed, while the market saw four leases over 100k SF done in Q3. By contrast, the Bellevue CBD has seen little new absorption lately because there simply isn't enough supply on the market, JLL managing director Charlie Malley tells us. New space will eventually come in the form of 929 Office Tower and Lincoln Square II, but for now there's pent-up demand, with vacancies dropping and rents rising. Overall Eastside vacancy has dropped to 8.9% as of Q3, down from 10.9% at the end of Q1 this year. |
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Think Globally, Eat Locally
 Aaron Locke/BCRA Creative space isn't just for offices: Local quick-service chain Taco Time Northwest opened its new prototype restaurant at 5611 221st Pl SE in Issaquah recently, featuring an exterior design using a shed roof and native Northwestern materials. According to Taco Time VP Chris Tonkin, local farmers' markets—with open space and natural lighting—inspired the look of the interior, which was created by Tacoma-based BCRA.
 In other local restaurant news, Urbanspoon released its annual list of Cheap Eats, featuring restaurants across North America where diners can find a good meal for not so much gelt: burgers, sandwiches, dogs and street food. Urbanspoon's five Seattle eateries (its hometown choices, with examples of their specialties) include:
- Paseo, featuring a Caribbean roast sandwich, which comes with onions and lettuce on a soft roll.
- Bakery Nouveau, featuring a twice-baked almond croissant.
- Red Mill Burgers, featuring a verde burger with roasted Anaheim peppers, jack cheese, and mill sauce.
- Salumi, and its lamb prosciutto.
- Honey Hole, which offers the Gooch, a tri-tip beef sandwich with a side of au jus on a demi baguette.
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22 Days Until the Top Under 40 Developers / Investors
Meet in Miami
The top developers and investors under the age of 40 descend on the Ritz Carlton in South Beach for Bisnow's first annual "Ascent" multi-day summit. See who's attending and apply to be considered for one of the few remaining spots here. |
Don't Miss Our Multifamily Summit!
Seattle's multifamily market has gone from strength to strength, but is it poised to become a victim of its own success, as young talent is priced out of the market? Come hear about that and more, and do a little schmoozing too, at our fourth annual Seattle Multifamily Summit. Expert speakers include Hunt Mortgage Group's Jeffrey Ballaine, Berkadia's Kenny Dudunakis, Mack Urban's TJ Lehman, Pillar Properties' Billy Pettit, Equity Residential Brett Richards, and Ankrom Moisan Architects' Mack Selberg. Sign up here.
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This newsletter is a journalistic news source which accepts no payment for featured interviews. It is supported by conventional advertisers clearly identified in the right hand column. You have been selected to receive it either through prior contact or professional association. If you have received it in error, please accept our apologies and unsubscribe at bottom of the newsletter. © 2013, Bisnow LLC, 1817 M St., NW, Washington, DC 20036. All rights reserved.
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