Seattle’s Construction Surge Continues
The metro’s multifamily market remains robust, thanks to increased investor interest and one of the strongest job markets in the country.
Seattle rent evolution, click to enlarge
Seattle’s multifamily market remains strong, with robust investor interest and an economy-galvanizing tech industry. After the metro reached a cycle peak in deliveries last year, occupancy in stabilized properties decreased by 50 basis points, to 95.7 percent as of June. A rapid hiring pace sustained by technology companies, along with soaring single-family home prices, maintains a high demand for apartments across the city, especially among young professionals.
The metro added more than 54,000 jobs in the 12 months ending in May, as Seattle continues to boast one of the strongest job markets in the country. Although trade, transportation and utilities led employment growth with more than 14,600 new jobs, the information sector saw the largest year-over-year increase—5.4 percent—with the addition of 5,800 jobs. Seattle’s strong commercial real estate market is fueled by Amazon, which holds about 20 percent of the metro’s prime office real estate. The company’s most significant project underway is the 1.1 million-square-foot Rufus 2.0 Block 20 in Denny Triangle, coincidentally the city’s largest office development.
Multifamily development activity remains robust, as roughly 23,000 units were under construction as of July, and an estimated 9,700 units are set to be delivered this year.
