Seattle Construction & Development Recap
May 25th, 2017 / Seattle
At this point in the Seattle real estate cycle, there have been significant spikes in key market factors across the spectrum. While demand for housing is high, construction and land costs are also climbing, according to the speakers of last month’s Bisnow Innovations Panel in Downtown Seattle. Polaris Pacific’s Project Director Josh Nasvik, joined on stage by fellow Seattle housing experts, identified construction costs as being the city’s single biggest challenge facing development.
A promising trend for the booming market is the continued investment from foreign capital sources, which will keep multifamily development strong locally. Following a short foreign investor lapse due to the recent Presidential election, interest has now rebounded from these overseas groups. Growing Chinese and local developer partnerships continue to increase and are in turn helping provide the additional housing Seattle needs.
Despite the continued investment, Seattle’s Downtown area was identified as a cause for concern given office and residential growth are outpacing public infrastructure. With a lack of public schooling and diminishing parks, the area’s desirability is at risk for continuing to draw families in the next 10 to 20 years. An additional factor contributing to unease about Downtown’s real estate climate are its limiting zoning laws, causing a major halt for developers eager to build.