Downtown Seattle currently ranks as number one for industry and development. This is a direct result of its diversified economy, wide range of job opportunities, and a well-educated labor force. This ranking was the result of interviews and survey feedback from more than 1,600 real estate experts including lenders, brokers, investors, advisors, fund managers, property companies, and consultants.
With so much growth taking place in the city, new construction and renovations are on the rise, both in the housing market and retail facilities.
• Retail space increased by more than 150 thousand square feet in 2017 and hasn’t slowed down yet.
• Housing has grown dramatically, with apartments seeing the biggest growth.
• Public parks are also in the works to accommodate the growing population.
Type of Development
• 2017 saw an increase of multifamily units reaching 7,526 by midyear, compared to 6,616 in total for 2016.
• With so many new jobs in the area, including Amazon’s new corporate campus, families have made Seattle their home.
• The population has increased by 58% since 2010, meaning the demand for housing is continuing to be on the rise.
• 1 out of every 10 Seattle-lites resides in the downtown area, which has created a need for more apartments and condo spaces.
Reasons for New Development
• More than half of all the people who work in the downtown area live within 10 miles of their workplace.
• Employers are moving into the downtown area to take advantage of the large, educated workforce.
• 58% of all new jobs in Seattle are located downtown.
• Seattle has more than 280,000 jobs centralized in the downtown area.
Rental Property for Retail
• Retail leases are in high demand due to the ever-increasing population working and living within the city.
• At the end of 2017, the cost to rent retail space in downtown Seattle averaged around $38.90 per square foot.
• Retail vacancy space at the end of 2017 was low, at only 5.3%.
Rental Spaces for Residents
More than 20,000 residential units were built in downtown Seattle during the past 10 years. Apartments account for the largest number of new housing units in the city.
• 1-bedroom apartments account for the majority of condos and apartment spaces within the downtown area.
• There are more than 14,000 apartment units with 2 bedrooms or more in downtown Seattle.
• The request for larger units is on the rise, as families are growing in size. By the end of 2017, 5,975 new residential units had been built downtown.
Benefits of Submetering on a Multifamily Building
Submetered multifamily complexes have individual utility meters for each unit. Each tenant receives their own bill for their amount of usage during the billing period.
• Occupant usage is based on what is actually used, not averaged with units that consume larger amounts.
• Individuals have control over how much they utilize in a billing cycle, which helps when adhering to a budget.
• If a problem occurs with an individual meter, it only affects a specific unit, and not the entire complex.
Overall, Seattle is a growing city that has added more than 65,000 new jobs since 2010. This rise in employment has created a demand for housing to accommodate the growing families who now call Seattle home. Since the majority of workers live within a 10-mile radius of their jobs in the city, apartments and condos are more in demand than single family dwellings.
Seattle’s growth and industry has propelled it from the number 4 spot in 2016 to the number 1 spot in 2017. As the city attracts more job seekers, more employers are relocating their businesses to downtown Seattle to take advantage of the highly skilled workforce that’s moving in.