2014 SEATTLE MULTIFAMILY URBAN MARKET STUDY 17% 17% 16% 29% 21% SOUTH LAKE UNION 5,715 UNITS 51% change in development pipeline from 2013 to 2014 1,986 UNITS 1,986 UNITS Find out which neighborhoods have the largest development pipeline SEATTLE MULTIFAMILY URBAN MARKET STUDY 2014 What every apartment investor needs to know about Seattle’s urban neighborhood development. Dylan Simon 206-414-8575 [email protected]
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2014 Seattle Multifamily Urban Market Study -- Dylan Simon
A definitive look at the new supply of apartments in the Seattle & Puget Sound development pipeline. This study takes a look at sales trends in 2013 for the tri-county region as well as Seattle's urban submarkets.
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Dylan Simon | 206 414 8575 | www.dylansimon.com 2014 Seattle MultifaMily urban Market Study
this past year has again proved the economic vitality of the Puget Sound region. Our diverse employment sector, strong entrepreneurial engine, robust post-secondary education system and high quality of life have placed us on the global map and provided us with an envious Post-recession economic outlook.
Having added nearly 50,000 jobs to the Seattle-bellevue-everett MSa in each of the last three years, and another 52,000 jobs forecasted for 2014, it is no surprise that we are one of the few economies to have regained all jobs lost since 2008.
apartment developers have responded to demand drivers over the last several years, adding 7,320 apartment units to the region in 2013, with plans to add another 40,000 units by 2018.
in our Post-recession economy, it is noteworthy that the focal point of investment capital is urban centers and neighborhoods. this phenomenon is demonstrated by both the development community and investment community.
With an apartment development and investment community demonstrably focused on urban centers and neighborhoods it is increasingly important to analyze these markets.
Job Growth fuels Continued development:Urban Locations Remain the Focus of Development & Investment
neighborhood analysis
develOPMent PiPeline &
SWOt analySiS
ballard
belltOWn
SOutH dOWntOWn/PiOneer Square
CaPitOl Hill
firSt Hill
queen anne
dOWntOWn
Green lake/ WallinGfOrd/
freMOnt
SOutH lake uniOn
WeSt bellevue
univerSity diStriCt
WeSt Seattle
90
90
520
BALLARD
QUEEN ANNE
UNIVERSITY DISTRICT
CAPITOL HILL
FIRST HILL
WEST BELLEVUE
BELLTOWN
DOWNTOWN
SODO/PIONEER SQUARE
WEST SEATTLE
SOUTH LAKE UNION
GREEN LAKE/WALLINGFORD/FREMONT
in the following study we start by analyzing key performance indicators from 2013. We then take a qualitative look at the attributes of our urban neighborhoods. finally, we take a quantitative study
of each neighborhood’s development pipeline and performance indicators.
Contact us to see how our analysis and insights can best serve your plans in 2014.
COllierS internatiOnal Seattle 3
Dylan Simon | 206 414 8575 | www.dylansimon.com 2014 Seattle MultifaMily urban Market Study
a look back at 2013 indicates a stellar year of economic vibrancy in Seattle and the Puget Sound region. the apartment investment market gained national attention by posting nation-leading rent growth at over 6.5% for the year and continued record occupancy levels.
in the investment sales market, marquee transactions pushed prices on a unit and square foot basis to all-time highs for the region. a closer analysis of the urban apartment market indicates that this market segment continues a trend of leading sales metrics from both volume and value perspectives.
2013 year in review
1 2 3Seattle by the numbers...
Number oNe city for tech jobs (Forbes, May 2013)
SecoNd best city for women entrepreneurs (Entrepreneur Magazine, May 2013)
Third best u.S. city for dogs (Estately, May 2013) 4 5number four
u.S. city for real estate investment (Urban Land Institute, November 2013)
fifTh best city for good jobs (Forbes, February 2013)
development
7,320
83%
56%
UnitS aDDeD to tri-coUnty in 2013, greateSt nUmber Since 1991
percentage of tri-coUnty Development
that lanDeD in King coUnty
percentage of tri-coUnty Development that lanDeD in
Urban King coUnty neighborhooDS
SnohomiSh coUnty anD pierce coUnty
Development
KingcoUnty
Development
Over Half Of tri-COunty develOPMent OCCured in urban kinG COunty neiGHbOrHOOdS
rental rates
SAN FRANCISCO SEATTLE
5.3%5.6%UNEMPLOYMENT
DECIBELS
127 137EARTHQUAKES
0 2
11% 9.8%VACANCY
111098765
-3.5POINT SPREAD
+3.5
# OF FAN-CAUSED B
111098765
COLLIERS IS ALL IN!GO SEAHAWKS!
SAN FRANCISCO SEATTLE
5.3%5.6%UNEMPLOYMENT
DECIBELS
127 137EARTHQUAKES
0 2
11% 9.8%VACANCY
111098765
-3.5POINT SPREAD
+3.5
# OF FAN-CAUSED B
111098765
COLLIERS IS ALL IN!GO SEAHAWKS!
average King coUnty rental rate, ½ of comparable Sf rent
$1,246 $3,000
vacancy rates
Sub-4%
4.0% vs. 4.8%
7.0% vs. 4.5%fall 2013 vacancy vS.
fall 2012 vacancy
increaSe in Urban rental rateS in 2013 vS. 13-year
average
<5%6.5%
King coUnty vacancy for Seven conSecUtive
QUarterS
increaSe in rental rateS in the region in 2013
2013 waS the firSt entire year of SUb-4% vacancy in metro
King coUnty Since 2007
average Seattle rental rate iS leSS than 1/2 of comparable
San franciSco rent
Based on data provided by Dupre + Scott
COllierS internatiOnal Seattle 4
Dylan Simon | 206 414 8575 | www.dylansimon.com 2014 Seattle MultifaMily urban Market Study
6 7america’s SixTh favorite city (Harris Interactive Poll, September 2013)
World’s number SeveN tech town (National Venture Capital Association, February 2013) 8 9 10number eighT
moving destination in the u.S. (U.S. Census Bureau, January 2013)
NiNTh best u.S. city for green homes (Redfin, April 2013)
TeNTh best-paying city for women (Forbes, February 2013)
Seattle by the numbers...
Sales—tri-County
tri-COunty kinG COunty urban kinG COunty
2000 2005 2012 2013
8.1
5.8 5.6 5.8
7.9
5.6 5.2 5.5
7.3
5.2 4.8 4.6
CaP
rate
2000 2005 2012 2013
$500M$393M
$95.4M
$1.81b
$1.35b
$550M
$2.15b
$1.65b
$749M
$1.61b
$1.16b
$783M
Sale
S vO
luM
e
2000 2005 2012 2013
53
117
79
52
33
75
53
34
616 19 17
nuM
ber
Of
Sale
S
33% vs. 14% vs. 11%2013 2005 2000
Since 2000, urban apartment sales in King County have tripled versus Tri-County
sales experiencing no growth.
Urban tranSactionS aS a % of tri-coUnty tranSactionS
2/3Since 2000, urban apartment sales volume in King
County has grown by a factor of 8 versus Tri-County sales growth barely tripling.
Urban tranSactionS aS a % of King coUnty SaleS volUme
<6 capCap rates across all counties
have compressed below 6% for nearly a decade.
cap rateS acroSS the region
an analysis of sales trends across the tri-county region since the turn of the century shows a demonstrable shift towards urban markets. a look at both the number of transactions and total value of transactions illustrates both greater focus on and investment in urban markets. a review of historic capitalization rates over this same period illustrates a vast compression of capitalization rates, yet relatively consistent spreads between geographic markets.
Based on data provided by Dupre + Scott
COllierS internatiOnal Seattle 5
Dylan Simon | 206 414 8575 | www.dylansimon.com 2014 Seattle MultifaMily urban Market Study
Based on data provided by Dupre + Scott & Real Capital Analytics for buildings +50 units, built after 1960
1960
1970
1980
1990
2000
2010
2020
0.0% 1.0% 2.0% 3.0% 4.0% 5.0% 6.0% 7.0%
Year Built
Cap Rate
year
Sale Price/PSf
year
bui
lt
year
bui
lt
Cap rate
year
Cap
rate
Sale
s Pr
ice/
PSf
COllierS internatiOnal Seattle 6
Dylan Simon | 206 414 8575 | www.dylansimon.com 2014 Seattle MultifaMily urban Market Study
regional Overview
Snohomish County# of residents in 2000: 606,024
# of residents in 2013: 730,500
apartment inventory in 2000: 33,551
apartment inventory in 2013: 33,843
king County# of residents in 2000: 1,737,046
# of residents in 2013: 1,981,900
apartment inventory in 2000: 132,577
apartment inventory in 2013: 154,175
Pierce County# of residents in 2000: 700,818
# of residents in 2013: 814,500
apartment inventory in 2000: 39,617
apartment inventory in 2013: 45,040
SnohomiShcoUnty
King coUnty
pierce coUnty
2000
2013
2000
2013
2000
2000
2013
2013
2000
2013
= 100,000 residents
21% population growth from 2000 to 2013
1% apartment inventory
growth from 2000 to 2013
14% population growth from 2000 to 2013
16% population growth from 2000 to 2013
14% apartment inventory
growth from 2000 to 2013
popUlation growth by coUnty
= 10,000 units
2000
2013
16% apartment inventory
growth from 2000 to 2013
Based on data provided by Dupre + Scott and Washington State Office of Financial Management
apartment inventory growth by coUnty
COllierS internatiOnal Seattle 7
Dylan Simon | 206 414 8575 | www.dylansimon.com 2014 Seattle MultifaMily urban Market Study
Urban Pipeline
31,686 UniTS98% of King CoUnTy ToTal
32,189 UniTSToTal nUmber in
King CoUnTy PiPeline2014-fUTUre
deliveries in urban Centers and neighborhoods
Based on data provided by Dupre + Scott as of February 2014
dOWntOWn
4,363 unitS-20%change in development pipeline from 2013 to 2014
WeSt bellevue
3,791 unitS1%change in development pipeline from 2013 to 2014
ballard
1,350 unitS-29%change in development pipeline from 2013 to 2014
CaPitOl Hill
2,469 unitS-35%change in development pipeline from 2013 to 2014
firSt Hill
2,255 unitS2%change in development pipeline from 2013 to 2014
Green lake/ WallinGfOrd/freMOnt
1,754 unitS
-24%change in development pipeline from 2013 to 2014
S. dOWntOWn/PiOneer Square
838 unitS
21%change in development pipeline from 2013 to 2014
queen anne
861 unitS-37%change in development pipeline from 2013 to 2014
SOutH lake uniOn
5,715 unitS51%change in development pipeline from 2013 to 2014
WeSt Seattle
2,502 unitS-2%change in development pipeline from 2013 to 2014
u diStriCt
2,815 unitS14%change in development pipeline from 2013 to 2014
2014 2015 2016 2017 future
belltOWn
2,973 unitS50%change in development pipeline from 2013 to 2014
13%
7%7% 27%
55%
6%
36%
21%
26%
17%
16%
29%
17%
8%
16%
12%
10%
39%
7%
3%8%
10%
16%
25%5% 35%
34%
7%
33%
46%6%
19%
40%
59%
37%
17%
26%
31%44%12%
16%
41%25%
20%
39%
17%
43%
21%
54%
43%
COllierS internatiOnal Seattle 8
Dylan Simon | 206 414 8575 | www.dylansimon.com 2014 Seattle MultifaMily urban Market Study
downtown (Cbd)
Strengths: » Core location, proximity to jobs, concentration of retail, adja-cency to waterfront and neighborhoods
Weaknesses: » Perception of danger/crime, concentration of social services, lack of parks
Opportunities: » development of boutique and mid-priced apartment projects, retail redevelopment along pedestrian corridors
Threats: » rising cost of all units, potential commoditization of product, crime, concentration of social services
Capitol Hill/first Hill
Strengths: » unrivaled character, diverse retail, great nighttime activation,
proximity to Cbd/first Hill job centers, walkability, ease of access from eastside, views
Weaknesses:» Proscriptive zoning for office development, lack of daytime
activation, challenging to find sites for new development and/or owner’s reluctance to sell, lack of parking
Opportunities:
» development of office and apartments along east Slope & South of Madison, retail development to meet rising needs, any use that promotes daytime activation, development capitalizing on emerging uses in denny triangle
Threats: » loss of character, rising prices, commoditization of apartment product, lack of daytime activation
South downtown/Pioneer Square
Strengths:
» Proximity to Cbd & waterfront, ease of access to multi-modal transit, flat topography, redevelopment & adaptive reuse of Pioneer Square buildings, development in the international district
Weaknesses: » Perception of crime, concentration of social services & home-less population, owner’s reluctance to redevelop and/or sell
Opportunities:» Capitalization on new zoning, market rate housing, retail & office
development, seizing opportunities related to Stadium district overlay & waterfront revitalization
Threats:» Crime, continued concentration of social services, lack of
nighttime activation, dilapidation of unreinforced masonry buildings
belltown
Strengths: » Proximity to Cbd/Slu & Westlake job centers, proximity to
soon-to-be revitalized waterfront, walkability, views, history of desirability
Weaknesses: » Current lack of character, poor/undesirable nighttime activation, lack of distinction block-by-block
Opportunities:
» retail redevelopment along pedestrian corridors, boutique development of retail, office & apartments, capitalization on waterfront revitalization, seizing opportunities as connection point between amazon.com headquarters and waterfront
Threats:» Perception of and actual crime, concentration of nighttime
activity, overdevelopment of high-cost apartments, lack of retailers coming to neighborhood
urban neighborhood S.W.O.t. analysis
COllierS internatiOnal Seattle 9
Dylan Simon | 206 414 8575 | www.dylansimon.com 2014 Seattle MultifaMily urban Market Study
urban neighborhood S.W.O.t. analysis
Green lake/Wallingford/fremont
Strengths: » Great neighborhood atmosphere & scale, waterfront & neighborhood amenities, great retail character, walkability
Weaknesses: » restrictive parcel sizes & zoning, land owners resistant to sell-ing land, need to travel to get to job centers
Opportunities: » boutique apartment development, retail responsive to new apart-ment development, office development
Threats: » Potential of oversupply of apartments in micro-markets, lack of growth of retail amenities
with uW, proximity to Cbd, light-rail in 2016, proximity to great neighborhoods, walkability
Weaknesses: » Crime/loitering, retail owners resistance to highest and best use of land, patchy new development
Opportunities:» renewal of retail experience (especially along university ave),
student housing development, capitalization on proposed zoning changes
Threats: » lack of character of neighborhood experience, oversupply of high price-point apartments, lack of higher-end retail amenities
queen anne
Strengths: » neighborhood character, good transition to single family
neighborhood, proximity to Cbd/Slu job centers, diversity of apartment stock and price-points, vibrant nightlife, views
Weaknesses:» Hard to overcome neighborhood niMbyism, lack of character &
“there-there” in lower queen anne, lack of continuity of retail experience
Opportunities:» renewal of retail, apartment development on upper queen
anne, capitalization on proximity to renewed Slu, boutique apartment development
Threats: » Potential of apartment oversupply in lower queen anne, con-tinued lack of character in lower queen anne.
South lake union (Slu)
Strengths:
» Proximity to Cbd, adjacency to lake union amenities & freeways, vibrant daytime activation, plethora of retail amenities, brand-name that attracts development capital, bursting employment opportunities, walkability
Weaknesses: » lack of character/historic preservation, lack of topographic features, congestion of traffic, lack of nighttime attractions.
Opportunities:
» Continued retail development, distinguishing any development by providing character, capitalization on new zoning, seizing opportunities based on location between Cdb & university district
Threats:» Continued lack of character, traffic/congestion, overbuilding
of apartments at same price-point, costliness of land & bonus density
COllierS internatiOnal Seattle 10
Dylan Simon | 206 414 8575 | www.dylansimon.com 2014 Seattle MultifaMily urban Market Study
West Seattle
Strengths:
» fantastic neighborhood setting & vibe, great retail core, proximity to waterfront amenities, protected views, proximity of necessary services, walkability, great single family housing stock, history of desirability, burgeoning retail amenities
Weaknesses: » Perception of distance to urban core, limited and congested tran-sit routes to urban centers
Opportunities:
» unexploited zoning height limits within core neighborhoods, retail development to capture growing population and shifting demographic, pricing discount to core apartment product, aging stock of apartments
Threats: » increased congestion on transit routes, potential oversupply of apartments at higher price-points
West bellevue
Strengths:
» Mature market with strong employer base and huge draw for new employers, delineated as an urban center for future growth, proximity to freeway access to all major freeways, fantastic retail core that continues to expand, great access to waterfront & park amenities
Weaknesses:
» large blocks that challenge walkability, rather sterile downtown experience, zoning & parking requirements that make development challenging, lack of authentic retail/restaurants, prevailing social/political pressures often at odds with urbanist psychology
Opportunities:
» development of market rate apartments, renewal of retail along Main Street, any development that will create unique & authentic place-making, nightlife amenities responsive to growing downtown population, retail amenities responsive to shifting demographics
Threats:» Pressure against mass transit & decision to locate transit above-
ground, proscriptive zoning, traffic congestion to Seattle, lack of authenticity/character, concentration of high-priced apartments
ballard
Strengths:
» unmatched ‘coolness’ and caché, concentration of authentic & boutique retail, great neighborhood setting, good single family options close to retail core, walkability, availability of buildings for adaptive reuse development, relative proximity to Seattle’s urban core, the “ballard” brand
Weaknesses: » limited transit routes to urban cores, lack of immediate freeway access, distance to eastside employers
Opportunities:
» fantastic momentum in development community & capital mar-kets, development of boutique apartments/condos/townhomes, development of retail & much needed office space, infill between ballard and fremont (aka frelard or Soba)
Threats:» result of explosive growth is unknown, potential oversupply of
high-priced apartments, increased congestion/traffic on arterials to job centers
urban neighborhood S.W.O.t. analysis
COllierS internatiOnal Seattle 11
Dylan Simon | 206 414 8575 | www.dylansimon.com 2014 Seattle MultifaMily urban Market Study
Based on data provided by Dupre + ScottRent and Vacancy Data as of Fall 2013*Average rent for buildings with 50+units, built after 1950†Historical Cumulative rent growth for buildings with 5+ units, built after 1900
ballardbelltOW
nSO
utH
dOWntOW
n/PiO
neer Square
CaPitOl H
illfirSt H
illq
ueen anne
dOWntOW
nGreen lake/
WallinGfO
rd/freM
Ont
SOu
tH lake u
niOn
WeSt bellevu
eu
niverSity diStriCt
WeSt Seattle
1
1021 pine Street 1021 Pine Street units: 20delivery: 1q 2017 developer: legacy Commercial
2
weStern & UniverSity 1301 Western avenue units: 180delivery: 2q 2016 developer: Mack urban
3
815 pine815 Pine Streetunits: 386delivery: 4q 2014 developer: Holland residential
4
ava802 Pine Streetunits: 200delivery: 4q 2016developer: executive Group of Companies
viKtoria 1915 2nd avenue units: 249delivery: 2014developer: Goodman real estate
7
2nD anD pine1608 2nd avenueunits: 398delivery: 1q 2017developer: equity residential
8
2030 8th avenUe2030 8th avenueunits: 355delivery: 2q 2015developer: Gid urban development Group
9
807 Stewart Street 807 Stewart Street units: 150delivery: 2q 2016 developer: rC Hedreen
10
2nD & virginia - SoUth tower1933 2nd avenueunits: 150delivery: early planning or on Hold developer: Credence equity
11
weSt eDge tower1430 2nd avenueunits: 157delivery: early planning or on Hold developer: urban visions
12
1200 Stewart 1200 Stewart Streetunits: 550delivery: early planning or on Hold developer: lexas Companies
13
1812 boren avenUe1812 boren avenueunits: 400delivery: early planning or on Hold developer: touchstone Corporation
14
2101 9th avenUe 2101 9th avenue units: 300delivery: early planning or on Hold developer: Gid urban development Group
15
2208 8th avenUe 2208 8th avenue units: 450delivery: early planning or on Hold developer: beebe realty
16
KinectS1823 Minor avenueunits: 344delivery: early planning or on Hold developer: Security Properties
7
9
1
11
12
131415 16
3
5
10
2
4
6
8
UnDer conStrUction early planning
DOWnTOWn $2.45averaGe rent Per
Square fOOt*vaCanCy
4.03.53.02.52.01.51.00.0
3.9% HiStOriCal CuMulative rent GrOWtH trend†
19.7% 3-year
35.8% 10-yearDeliveries
2014 2015 2016 2017 future709 355 530 418 2,351
COllierS internatiOnal Seattle 12
Dylan Simon | 206 414 8575 | www.dylansimon.com 2014 Seattle MultifaMily urban Market Study
Based on data provided by Dupre + ScottRent and Vacancy Data as of Fall 2013*Average rent for buildings with 50+units, built after 1950†Historical Cumulative rent growth for buildings with 5+ units, built after 1900
ballardbelltOW
nSO
utH
dOWntOW
n/PiO
neer Square
CaPitOl H
illfirSt H
illq
ueen anne
dOWntOW
nGreen lake/
WallinGfO
rd/freM
Ont
SOu
tH lake u
niOn
WeSt bellevu
eu
niverSity diStriCt
WeSt Seattle
1
wave 201 S king Streetunits: 333delivery: 3q 2014 developer: daniels real estate
2
310 4th avenUe S 310 4th avenue S units: 158delivery: 4q 2015 developer: Goodman real estate
3
civic SQUare601 4th avenueunits: 192delivery: early planning or on Hold developer: triad development
4
80 S main Street 80 S Main Street units: 50delivery: early planning or on Hold developer: Goodman real estate
5
StaDiUm terrace589 Occidental avenue Sunits: 105delivery: early Planningdeveloper: lakeside Capital Management
1
3
5
2
4
UnDer conStrUction early planning
$2.45averaGe rent Per
Square fOOt*vaCanCy
4.03.53.02.52.01.51.00.0
3.9% HiStOriCal CuMulative rent GrOWtH trend†
19.7% 3-year
35.8% 10-yearDeliveries
2014 2015 2016 2017 future333 158 0 0 347
SOuTh DOWnTOWn/PiOneer Square
COllierS internatiOnal Seattle 13
Dylan Simon | 206 414 8575 | www.dylansimon.com 2014 Seattle MultifaMily urban Market Study
Based on data provided by Dupre + ScottRent and Vacancy Data as of Fall 2013*Average rent for buildings with 50+units, built after 1950†Historical Cumulative rent growth for buildings with 5+ units, built after 1900
ballardbelltOW
nSO
utH
dOWntOW
n/PiO
neer Square
CaPitOl H
illfirSt H
illq
ueen anne
dOWntOW
nGreen lake/
WallinGfO
rd/freM
Ont
SOu
tH lake u
niOn
WeSt bellevu
eu
niverSity diStriCt
WeSt Seattle
7
1
9
3
5
8
2
11
19
13
21
29
1523
31
1725
33 27
35
12
20
14
22
30
16
24
32
18
26
34
36
4
6
UnDer conStrUction early planning
1
10th & Union 954 e union Streetunits: 79delivery: 1q 2014developer: Seawest inv. assoc.
2
1200 e piKe Street1200 e Pike Streetunits: 88delivery: 1q 2015developer: tarragon
3
1420 e maDiSon Street1420 e Madison Streetunits: 70delivery: 3q 2015developer: Metropolitan Homes
123 bellevUe avenUe e 123 bellevue avenue e units: 100delivery: early Planning
31
SoUnD tranSit Site a 150 broadway avenue eunits: 132delivery: early Planning
32
SoUnD tranSit Site b north175 10th avenue eunits: 86delivery: early Planning
33
SoUnD tranSit Site b SoUth125 10th avenue eunits: 85delivery: early Planning
34
SoUnD tranSit Site c 1830 broadway avenueunits: 94delivery: early Planning
35
SoUnD tranSit Site D1821 broadway avenueunits: 44delivery: early Planning
36
1312 e olive Street1312 e Olive Streetunits: 41delivery: early planningdeveloper: SeCO development
28 10
$2.31averaGe rent Per
Square fOOt*vaCanCy
4.03.53.02.52.01.51.00.0
2.7% HiStOriCal CuMulative rent GrOWtH trend
21.7% 3-year
56.4% 10-yearDeliveries
2014 2015 2016 2017 future828 862 161 0 618
caPiTOl hill
COllierS internatiOnal Seattle 14
Dylan Simon | 206 414 8575 | www.dylansimon.com 2014 Seattle MultifaMily urban Market Study
Based on data provided by Dupre + ScottRent and Vacancy Data as of Fall 2013*Average rent for buildings with 50+units, built after 1950†Historical Cumulative rent growth for buildings with 5+ units, built after 1900
ballardbelltOW
nSO
utH
dOWntOW
n/PiO
neer Square
CaPitOl H
illfirSt H
illq
ueen anne
dOWntOW
nGreen lake/
WallinGfO
rd/freM
Ont
SOu
tH lake u
niOn
WeSt bellevu
eu
niverSity diStriCt
WeSt Seattle
1
ava capitol hill600 e Pike Streetunits: 249delivery: 3q 2015 developer: avalon bay Communities
2
cielo 802 Seneca Streetunits: 335delivery: 2q 2015 developer: laconia development
3
cUe721 e Pine Streetunits: 95delivery: 2q 2015developer: O&S Partners
4
DUnn aUtomotive 501 e Pike Streetunits: 104delivery: 4q 2015 developer: Hunters Capital
5
excelSior301 e Pine Streetunits: 205delivery: 4q 2015 developer: Madison development
6
piKe motorworKS 714 e Pike Streetunits: 260delivery: 3q 2015 developer: Wolff Company
7
three20320 e Pine Streetunits: 131delivery: 1q 2014 developer: Stratford Company
8
1013 8th avenUe1013 8th avenueunits: 200delivery: early Planning
9
601 e piKe Street601 e Pike Streetunits: 60delivery: early Planning developer: intracorp
10
800 colUmbia Street 800 Columbia Street units: 287delivery: early Planning developer: Credence equity
11
harbor viSta 500 terry avenueunits: 329delivery: early Planning developer: Credence equity
7
1
9
11
35
8
10
2
4
6
UnDer conStrUction early planning
$2.32averaGe rent Per
Square fOOt*vaCanCy
4.03.53.02.52.01.51.00.0
2.9% HiStOriCal CuMulative rent GrOWtH trend†
31.5% 3-year
63.7% 10-yearDeliveries
2014 2015 2016 2017 future131 1,248 0 0 876
firST hill
COllierS internatiOnal Seattle 15
Dylan Simon | 206 414 8575 | www.dylansimon.com 2014 Seattle MultifaMily urban Market Study
Based on data provided by Dupre + ScottRent and Vacancy Data as of Fall 2013*Average rent for buildings with 50+units, built after 1950†Historical Cumulative rent growth for buildings with 5+ units, built after 1900
ballardbelltOW
nSO
utH
dOWntOW
n/PiO
neer Square
CaPitOl H
illfirSt H
illq
ueen anne
dOWntOW
nGreen lake/
WallinGfO
rd/freM
Ont
SOu
tH lake u
niOn
WeSt bellevu
eu
niverSity diStriCt
WeSt Seattle
1
3031 weStern avenUe3031 Western avenueunits: 100delivery: 4q 2016 developer: Martin Selig real estate
2
4th anD Denny2720 4th avenueunits: 161delivery: 4q 2015developer: Hb Capital
600 wall600 Wall Streetunits: 310delivery: 4q 2016 developer: laconia development
10
1601 2nD avenUe 1601 2nd avenue units: 367delivery: early planning or on Hold developer: Principal financial Group
11
2603 3rD avenUe 2603 3rd avene units: 100delivery: early planning or on Hold developer: Hb Capital
12
2nD & wall210 Wall Streetunits: 327delivery: early planning or on Hold developer: bentall kennedy
13
3rD & virginia 2000 3rd avenueunits: 493delivery: early planning or on Hold developer: bentall kennedy
92
3
1
4
6
11
13
10
8
12
5
7
UnDer conStrUction early planning
$2.45averaGe rent Per
Square fOOt*vaCanCy
4.03.53.02.52.01.51.00.0
3.9% HiStOriCal CuMulative rent GrOWtH trend†
19.7% 3-year
35.8% 10-yearDeliveries
2014 2015 2016 2017 future486 298 752 150 1,287
bellTOWn
COllierS internatiOnal Seattle 16
Dylan Simon | 206 414 8575 | www.dylansimon.com 2014 Seattle MultifaMily urban Market Study
Based on data provided by Dupre + ScottRent and Vacancy Data as of Fall 2013*Average rent for buildings with 50+units, built after 1950†Historical Cumulative rent growth for buildings with 5+ units, built after 1900
ballardbelltOW
nSO
utH
dOWntOW
n/PiO
neer Square
CaPitOl H
illfirSt H
illq
ueen anne
dOWntOW
nGreen lake/
WallinGfO
rd/freM
Ont
SOu
tH lake u
niOn
WeSt bellevu
eu
niverSity diStriCt
WeSt Seattle
1
101 John101 John Streetunits: 20delivery: 1q 2015 development: indonesian developments
2
306 Qa306 queen anne avenue nunits: 53delivery: 2q 2014 development: Gramor development
QUeen anne flatS521 2nd avenue Wunits: 33delivery: 1q 2015 development: isola Homes
8
QUeen anne towne1900 queen anne avenue nunits: 126delivery: 2q 2014 development: emerald bay equity
9
14 w roy Street14 W roy Streetunits: 77delivery: early Planningdevelopment: Metropolitan Homes
10
221 w repUblican 221 W republican Streetunits: 37delivery: early Planningdevelopment: CJd investments
1
103
42
57
9
6
8
UnDer conStrUction early planning
$2.26averaGe rent Per
Square fOOt*vaCanCy
4.03.53.02.52.01.51.00.0
2.7% HiStOriCal CuMulative rent GrOWtH trend†
22.8% 3-year
52.6% 10-yearDeliveries
2014 2015 2016 2017 future379 265 103 0 114
queen anne
COllierS internatiOnal Seattle 17
Dylan Simon | 206 414 8575 | www.dylansimon.com 2014 Seattle MultifaMily urban Market Study
Based on data provided by Dupre + ScottRent and Vacancy Data as of Fall 2013*Average rent for buildings with 50+units, built after 1950†Historical Cumulative rent growth for buildings with 5+ units, built after 1900
ballardbelltOW
nSO
utH
dOWntOW
n/PiO
neer Square
CaPitOl H
illfirSt H
illq
ueen anne
dOWntOW
nGreen lake/
WallinGfO
rd/freM
Ont
SOu
tH lake u
niOn
WeSt bellevu
eu
niverSity diStriCt
WeSt Seattle
1
centUry 101 taylor avenue nunits: 258delivery: 3q 2014developer: SrM development
2
1120 John Street1120 John Streetunits: 800delivery: 3q 2017developer: Onni Group
1101 weStlaKe avenUe n 1101 Westlake avenue nunits: 500delivery: early Planningdeveloper: Holland residential
22
624 yale avenUe n624 yale avenue nunits: 200delivery: early planning or on Hold developer: blume Company
23
mercer blocKS 550 dexter avenue nunits: 200delivery: early planning or on Hold developer: vulcan northwest
24
Denny/fairview105 fairview avenue nunits: 300delivery: early planning or on Hold developer: Onni Group
1
17
18
19
20
21
22
314
5
164
2
15
6
12
8
13
23
24
7
11910
UnDer conStrUction early planning
$2.45averaGe rent Per
Square fOOt*vaCanCy
4.03.53.02.52.01.51.00.0
3.9% HiStOriCal CuMulative rent GrOWtH trend†
19.7% 3-year
35.8% 10-yearDeliveries
2014 2015 2016 2017 future959 985 921 1,650 1,200
SOuTh lake uniOn
COllierS internatiOnal Seattle 18
Dylan Simon | 206 414 8575 | www.dylansimon.com 2014 Seattle MultifaMily urban Market Study
Based on data provided by Dupre + ScottRent and Vacancy Data as of Fall 2013*Average rent for buildings with 50+units, built after 1950†Historical Cumulative rent growth for buildings with 5+ units, built after 1900
ballardbelltOW
nSO
utH
dOWntOW
n/PiO
neer Square
CaPitOl H
illfirSt H
illq
ueen anne
dOWntOW
nGreen lake/
WallinGfO
rd/freM
Ont
SOu
tH lake u
niOn
WeSt bellevu
eu
niverSity diStriCt
WeSt Seattle
1
5
3
2
6
11
8
10
14
7
12
9
13
4
UnDer conStrUction early planning
1
1321 n 45th Street1321 n 45th Streetunits: 158delivery: 2q 2015 developer: Mack urban
2
3801 Stone way n3801 Stone Way nunits: 277delivery: 4q 2015 developer: legacy Partners
3
phinney6800 Greenwood avenue n units: 46delivery: 4q 2015 developer: isola Capital Mgmt.
7216 aUrora avenUe n7216 aurora avenue nunits: 34delivery: early Planning developer: lee & associates
14
414 ne ravenna blvD414 ne ravenna blvd, Seattleunits: 62delivery: early Planning developer: royal arms C.P.
$2.37averaGe rent Per
Square fOOt*vaCanCy
4.03.53.02.52.01.51.00.0
1.7% HiStOriCal CuMulative rent GrOWtH trend†
16.9% 3-year
46.7% 10-yearDeliveries
2014 2015 2016 2017 future468 1,042 125 0 119
green lake/ WallingfOrD/ fremOnT
COllierS internatiOnal Seattle 19
Dylan Simon | 206 414 8575 | www.dylansimon.com 2014 Seattle MultifaMily urban Market Study
Based on data provided by Dupre + ScottRent and Vacancy Data as of Fall 2013*Average rent for buildings with 50+units, built after 1950†Historical Cumulative rent growth for buildings with 5+ units, built after 1900
brooKlyn place4128 brooklyn avenue neunits: 84delivery: early planningdeveloper: Horizon realty
21
4710 11th avenUe ne 4710 11th avenue ne units: 40delivery: early planningdeveloper: Money Grass
22
5260 UniverSity way ne5260 university Way neunits: 68delivery: early planningdeveloper: ying development
23
4302 7th avenUe ne 4302 7th avenue ne units: 47delivery: early Planning developer: 12 bellevue int’l.
24
4555 rooSevelt way ne4555 roosevelt Way neunits: 168delivery: early Planning developer: amer. Campus
25
acaDemia coUrt4039 8th avenue neunits: 59delivery: early Planning developer: lukito development
1
10
21
22
43
25
7
9
20
23
24
25 1112
14
16
18
13
1517
19
6
8
UnDer conStrUction early planning
$1.84averaGe rent Per
Square fOOt*vaCanCy
4.03.53.02.52.01.51.00.0
2.9% HiStOriCal CuMulative rent GrOWtH trend†
14.0% 3-year
40.8% 10-yearDeliveries
2014 2015 2016 2017 future581 1,024 0 744 466
univerSiTy DiSTricT
COllierS internatiOnal Seattle 20
Dylan Simon | 206 414 8575 | www.dylansimon.com 2014 Seattle MultifaMily urban Market Study
Based on data provided by Dupre + ScottRent and Vacancy Data as of Fall 2013*Average rent for buildings with 50+units, built after 1950†Historical Cumulative rent growth for buildings with 5+ units, built after 1900
ballardbelltOW
nSO
utH
dOWntOW
n/PiO
neer Square
CaPitOl H
illfirSt H
illq
ueen anne
dOWntOW
nGreen lake/
WallinGfO
rd/freM
Ont
SOu
tH lake u
niOn
WeSt bellevu
eu
niverSity diStriCt
WeSt Seattle
7
9
3
5
8
2
11
19
13
21
15
2324
17
1220
14 22
16
18
4
6
UnDer conStrUction early planning
1
3210 california avenUe Sw3210 California avenue SWunits: 149delivery: 4q 2015 developer: intracorp
2
3829 california avenUe Sw3829 California avenue SWunits: 29delivery: 3q 2015developer: arrow Construction
4532 42nD avenUe Sw4532 42nd avenue SWunits: 35delivery: early planningdeveloper: Golden Stream 4106
23
3078 Sw avalon way3078 SW avalon Wayunits: 102delivery: early planningdeveloper: arrow Construction
24
4106 DelriDge way Sw4106 delridge Way SWunits: 30delivery: early planningdeveloper: Simpson & Simpson
10
1
$1.76averaGe rent Per
Square fOOt*vaCanCy
4.03.53.02.52.01.51.00.0
3.2% HiStOriCal CuMulative rent GrOWtH trend†
18.7% 3-year
58.9% 10-yearDeliveries
2014 2015 2016 2017 future651 922 422 0 507
WeST SeaTTle
COllierS internatiOnal Seattle 21
Dylan Simon | 206 414 8575 | www.dylansimon.com 2014 Seattle MultifaMily urban Market Study
Based on data provided by Dupre + ScottRent and Vacancy Data as of Fall 2013*Average rent for buildings with 50+units, built after 1950†Historical Cumulative rent growth for buildings with 5+ units, built after 1900
ballardbelltOW
nSO
utH
dOWntOW
n/PiO
neer Square
CaPitOl H
illfirSt H
illq
ueen anne
dOWntOW
nGreen lake/
WallinGfO
rd/freM
Ont
SOu
tH lake u
niOn
WeSt bellevu
eu
niverSity diStriCt
WeSt Seattle
1
1436 nw 62nD Street 1436 nW 62nd Street units: 27delivery: 3q 2015 developer: Greenbuild development
7016 15th avenUe nw7016 15th avenue nWunits: 90delivery: early Planning
9
ballarD loftS6404 24th avenue nWunits: 72delivery: early Planningdeveloper: William Parks inc
10
1762 nw 59th Street 1762 nW 59th Street units: 25delivery: early Planning
11
2248 nw 64th Street2248 nW 64th Street units: 24delivery: early Planningdeveloper: William Parks inc
7
1
9
3
5
8
2
10
11
4
6
UnDer conStrUction early planning
$2.28averaGe rent Per
Square fOOt*vaCanCy
4.03.53.02.52.01.51.00.0
3.1% HiStOriCal CuMulative rent GrOWtH trend†
29.6% 3-year
101.7% 10-yearDeliveries
2014 2015 2016 2017 future616 441 82 0 211
ballarD
COllierS internatiOnal Seattle 22
Dylan Simon | 206 414 8575 | www.dylansimon.com 2014 Seattle MultifaMily urban Market Study
Based on data provided by Dupre + ScottRent and Vacancy Data as of Fall 2013*Average rent for buildings with 50+units, built after 1950†Historical Cumulative rent growth for buildings with 5+ units, built after 1900
ballardbelltOW
nSO
utH
dOWntOW
n/PiO
neer Square
CaPitOl H
illfirSt H
illq
ueen anne
dOWntOW
nGreen lake/
WallinGfO
rd/freM
Ont
SOu
tH lake u
niOn
WeSt bellevu
eu
niverSity diStriCt
WeSt Seattle
1
1019 103rD avenUe ne 1019 103rd avenue ne units: 175delivery: 4q 2015 developer: Province Group
2
alley 11111011 ne 9th Streetunits: 260delivery: 3q 2015 developer: Skanska
3
bellevUe parK ii88 102nd avenue neunits: 160delivery: 4q 2015 developer: Cantera development Group
4
bellevUe SQUare expanSion401 bellevue Way neunits: 249delivery: 2q 2018 developer: kemper development
5
bellevUe at main15 bellevue Way Seunits: 262delivery: 2q 2015 developer: SrM development
6
lincoln SQUare ii410 bellevue Way neunits: 285delivery: 2q 2017 developer: kemper development
7
main Street10505 Main Streetunits: 260delivery: 2q 2015 developer: alamo Manhattan
8
main Street gateway10360 Main Streetunits: 370delivery: 4q 2015 developer: vander Hoek Corp
9
parK metro11017 ne 12th Streetunits: 78delivery: 2014developer: evergreen Point development
10
Soma towerS i288 106th avenue neunits: 148delivery: 2q 2014 developer: Su development
11
Soma towerS ii220 106th avenue neunits: 124delivery: 2q 2016 developer: Su development
Colliers international601 union Street, Suite 5300Seattle, Washington 98101206 223 0866www.colliers.com
frOm The auThOr
With nearly all of king County’s new apartment development slated for urban centers and neighborhoods, never has it been more important to study emerging trends on a micro-market level, as well as take into consideration interplay between all asset classes – including retail and office. the intention of this study is to provide clearer optics into trends in Seattle’s urban centers and neighborhoods and thereby assist clients with investment theses for the development, acquisition and disposition of multifamily assets.
Sales Specialties
» urban infill apartment complexes» $15M — $100M apartment complexes» value-add of urban and suburban apartment complexes» development land for apartments and mixed uses» adaptive re-use and repositioning of obsolescent buildings