Multifamily Outlook Gung-Ho

Research departments agree: Seattle's still a hot multifamily market going into '14. According to Marcus & Millichap, Amazon, Zillow, and Microsoft continue to expand, attracting many young out-of-state employees seeking rental housing. (Living on a couch is only cool until you wake up with a sore back.) Vacancy, hovering below the replacement level of 5% for six consecutive quarters, has unleashed developers. "Developers continue to build, employers continue to create jobs, and our definition of 'Core Seattle' continues to expand its borders," Marcus & Millichap senior associate Tim McKay tells us. Tim was snapped at a Bisnow event earlier this year with Urban Evolution principal Chris Rossman, and Exxel Pacific CEO Kevin DeVries and VP Bill Bieber.

According to JLL managing director David Young, who leads the firm's West Coast multifamily practice, STEM employment will continue to add fuel to the multifamily fire. While all metro metros have seen apartment fundamentals strengthen over the past year, some of the highest levels of growth have been found in areas that feature a high concentration of STEM, such as Seattle and Portland, he says. Recently David and colleagues Corey Marx and Seth Heikkila brokered the sale of the 122-unit 206 Bell in Belltown, which was completed by HB Management in June and bought by Invesco Real Estate. David tells us the property's within walking distance of Amazon, Twitter, Facebook, and Google. (Perfect if you're participating in a tech office scavenger hunt.)