LOCAL MARKETS
At the end of 1999, Seattle's Commercial Real Estate Market was
experiencing an average of 3% Vacancy Rate within it's central business district and
outside areas. With supply being so low across the board, properties in Seattle command a
premium rate. Even at a 3% Vacancy Rate that it is not impossible to find space in the
downtown areas. Building has maintained constant, and "Pre-Leasing" of new
construction averages around 60%. Although low supply and high rates are found downtown,
opportunities exist throughout Seattle's outlying areas to the East, North and South:
EAST (map): To the North
East, Redmond and Woodinville have been receiving attention from National Retail chains
and opportunities still exist for raw land and leasing. Woodinville and Maltby both have
great opportunities in the Industrial arena because of their access for trucking and rail.
NORTH (map): North is where
the next boom in Commercial Real Estate will be found. South Everett is prime for new
Office and Industrial deals and the rates are more reasonable. Farther north to Arlington
and Smokey Point, you find "helpful" Municipalities, as these areas are eager
for growth.
SOUTH (map): Beginning in
Burien, Federal Way, and SeaTac the office and industrial Markets have been under
utilized. A close proximity to Seattle makes this one of the last frontiers for Seattle's
premium market. As SeaTac International Airport expands to 3 runways, much attention is
being paid to the SeaTac and Burien areas for Office, Industrial, and Hospitality
opportunities. Tacoma is where you'll find some of the best deals in the northwest. Supply
is higher than usual, dropping rates down around 20% below the market average.
