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Seattle’s Economic Resilience Bodes Well for MF Development Pipeline
The apartment development pipeline in the Puget Sound region comprises more than 100,000 units, according to new research by Kidder Mathews. Although delivery dates vary based on the status of each project, the current pipeline represents a potential 30% increase to the region’s existing apartment inventory.
The market report authored by Dylan Simon and Jerrid Anderson covers apartment buildings under development with 10 or more units in King, Snohomish, Pierce, and Kitsap counties.
“Given that we are in unprecedented times, we conducted this research with two key considerations top of mind,” said Simon. “The first is that the global health crisis will undoubtedly impact apartment fundamentals and change many of the plans developers made prior. And the second, that Seattle is an extremely resilient market, so analyzing this data is the best method for investors to plan for success in the long term.”
Based on the results of a survey sent to more than 300 active developers in the region, the biggest impact felt thus far is timing for permitting and construction starts. As of May 1, delays up to six months were anticipated by 86% of respondents for permitting and 88% of respondents for completion of construction.
“Only time will tell what to expect through the second half of 2020 and into 2021. The accelerated economic fundamentals of 2019 may lie dormant for a brief period, but they are far from extinguished. We expect the Puget Sound region will lead the nation in recovery from the impacts of COVID-19,” said Simon.
For comments, questions or concerns, please contact Dennis Kaiser
- ◦Development
