BISNOW: Seattle Developers Keep Adding Rental Units, But Demand Still Outpaces Supply
Approximately 9,990 apartment units will be delivered in 2019, according to a report by Marcus & Millichap. That figure keeps with a five-year trend of similar rental unit deliveries in the greater Seattle area. In 2018, 10,040 units were delivered.
Despite the high number of units coming on the market, demand continues to outpace supply. The vacancy rate fell to 4.3% this year, while the rent climbed 4.4% to an average of $1,768 per month for a one-bedroom apartment. This follows a 4.2% increase in rent prices in 2018.
Seattle is considered one of the most active apartment markets in the country, according to the report. Since 2015, more than 46,000 rental units have been added. In the second quarter, 19,500 units were in the pipeline.
Marcus & Millichap Seattle Local Apartment Report
No slowdown in job growth for the Puget Sound region, sustaining demand for rental housing. As a top hub for tech and life sciences, Seattle has been a leader in job creation this economic cycle, resulting in outsized household formation trends and robust rental demand. More Bay Area companies are tapping into the metro’s deep tech roots, most recently with Apple inking a large office deal that can accommodate upward of 2,000 new workers.
Facebook and Google also have plans to grow their local workforce by thousands with recent leases in South Lake Union and on the Eastside. Hometown tech titans Amazon and Microsoft are expanding rapidly on the Eastside as well. Microsoft is undergoing a major overhaul of its Redmond campus that could provide room for an additional 8,000 workers, while Amazon is amassing enough space in Bellevue that could rival HQ2.
Sixty West Targets Two Multifamily Opportunity Zone Projects in Seattle
Sixty West currently controls two targeted properties in Seattle, both located in Qualified Opportunity Zones. Together the projects total more than $165 M in new development. The planned developments will add 400+ units to the Seattle rental market as well as potential food & beverage. The developments also include plans for ground level retail.
The project’s development partner is local Seattle area developer TRENT Development. The company’s principals, Trent Mummery and Patrick Ashman, have over 40 years combined experience developing institutional quality multifamily and mixed-use projects in the Seattle area, totaling nearly 1,300 units delivered to the market.
Read the full BISNOW article HERE.
Learn more about Sixty West Funds and explore additional Opportunity Zone properties HERE.