Commercial Real Estate Report Seattle – Q3 2021
Seattle Commercial Real Estate Market Q3
Is the commercial real estate market slowing down or is it picking up
Seattle commercial real estate covers several different sectors, including but not limited to retail, office, and multi-family. We will look at those three sectors to determine the status of the Seattle commercial real estate market during the third quarter of 2021.
Retail Real Estate in Seattle
There was a distinct improvement in the retail market. Economic recovery coupled with higher foot traffic are to thank for the stimulation. While hundreds of businesses closed over the last year and a half, over 250 businesses opened during that same period. Downtown Seattle Association reported more than 98,000 people currently reside in Downtown Seattle, a good sign for the recovery of retail.
Seattle Office Buildings for Sale
The Seattle office market has grown quickly over the last few months, with leasing activity increasing as well. Attention from large investors and rising property values helped relieve office vacancies in the Puget Sound area, previously at 9.7%. There were $2.4 billon in office deals done in the third quarter, with the upward trend predicted to continue. There were many notable acquisitions, like Jamestown, which attained a two-building complex named Home Plate Center. The $251 million deal is across the street from Lumen Field and T-Mobile Park.
Multi-Family Increase in Development
Value-add and new development properties contributed to a large portion of deals in the third quarter. Bellevue saw a significant increase in multi-family property projects. Companies like Abacus Capital Group, which purchased Ridgedale Apartments for $144 million, honed in on assets that can be renovated. Similarly, The M Seattle, located at the U-District, was purchased by Greystar for $138 million. Properties that can be renovated or added to help support higher rents, making them decidedly desirable purchases.
Does the Future Look Brighter for the Seattle Job Market?
While job growth in Washington was better than the national average, the third quarter still fell short compared to the second quarter. According to The Seattle Times, unemployment fell to 4.9% in September, down .2% from August. Employers have begun offering incentives, such as increased pay and added benefits, in an attempt to attract workers.
Where Can I Find a Seattle Commercial Real Estate Broker?
There are many Seattle real estate companies, but Ewing & Clark has been providing our city with real estate service since 1900. Feel free to reach out to Ewing and Clark or one of our Seattle real estate agents that knows the Seattle commercial real estate market. If you prefer, start today on our Greater Seattle commercial MLS search and let us know what you want to see.
