After several years of a slow real estate market, commercial developers in Seattle are noticing a greater need for apartments in the area and are hopeful that 2011 will be a more productive year.
Apartments are in great demand these days due to the amount of foreclosures and people just not opting to purchase homes right now. Developers are putting up apartment complexes and seeing them filled up quickly.
Within the last year, vacancy rates have dropped and rent has increased slightly, which are clear signs of increasing demand. Analysts predict that 2011 will see a growing market as developers get on board and get building.
A 122-unit is set to begin being built in Belltown this month as well as a 105-unit development near Seattle University next month. R.D. Merrill Properties has their hopes on constructing a 234-unit complex on Capitol Hill in March that will target young adults. This same company is planning on construction in three other areas as well, including Wallingford, Ballard, and Lower Queen Anne.
One of the country’s biggest apartment developers, Avalon Bay Communities, anticipates building a 272-unit apartment complex as well. The number of apartments in the early permitting stages has increased 48 percent in the fourth quarter alone.
The market in Seattle has even prompted developers in other cities to come get in on the ripe market. Atlanta-based Wood Partners opened an office in November.
People just don’t seem as interested to purchase homes these days due to the poor real estate market the past few years. Many are waiting to see what the market will do in the next couple of years before making that decision.
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