The professionals at Seattle Commercial Real Estate, with over 200 years of real estate experience, have watched the dynamics of development in the urban core of downtown Seattle and Bellevue real estate with great interest. The commercial real estate in these two core cities has been the driver of the current real estate cycle, which has lasted well over 11 years to date. This is a new record for longevity in the Seattle region.
Giant companies such as Weyerhaeuser have moved to the downtown cores, abandoning their historical homes in the suburbs. The vacancy absorption, particularly in the office leasing sector, has been slow, to say the least. But the commercial real estate industry abhors a vacuum and it seems that the first glimmerings of a revival are underway. The driving force may very well be the Millennials who increasingly look to family formations and are no longer interested in an “in city” environment. Another factor is the cost of rent. To address the high office rents in the area, law firms and the like are already shrinking their footprints and seeking other efficiencies of operation. Satellite offices and home offices are viable alternatives for businesses.
The speculative upside is very interesting, but from the standpoint of Seattle Commercial Real Estate and its investors, hunker down with a huge equity and be prepared to be patient. Play the real estate cycle based upon a 10 year hold.