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Drama, Crisis in Condo-Development Market

SEATTLE, WA-The extinction of dinosaurs, scientists pronounce, was wrought by natural calamity. For the condominium market, those in development assert its demise is taking the form of exponentially-escalating insurance costs and greed-driven lawsuits. Lawyers counter that poor construction is to blame.

By Janet Parker | Updated on March 01, 2002

SEATTLE, WA-Dwindling sources of project insurance, unbearably-high premiums and the threat of lawsuits-for-profit are choking the condominium development market, according to a growing number of developers, contractors and architects.

Rodney Kauffman, executive VP of the Seattle chapter of the Building Owners & Managers Assn., says while BOMA is not directly involved in the multi-family market, it is concerned from the standpoint this issue is impacting Downtown living, the vibrancy of which is critical to building owners and managers. “That issue is basically putting a stop to the creation of new condo developments in Seattle,” states Kauffman.

One general contractor tells GlobeSt.com the problem lies rooted in attempts to develop product with palatable market prices while keeping up with codes. In certain instances, the combination of “economical” designs and materials resulted construction flaws. Though the industry plight extends beyond the Pacific Northwest, water intrusion is the most prevalent defect locally.

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