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Downtown Apartment Market Weathering 'The Perfect Storm'

SEATTLE, WA-Consultant Brian O'Connor says vacancies in Seattle's Downtown apartment market are now around 13%--but that figure could jump as many as four percentage points by mid-year.

By Janet Parker | Updated on March 13, 2002

SEATTLE, WA-”The biggest story in the apartment market right now is Downtown,” says O’Connor Consulting Group head, Brian O’Conner. “It’s the (Puget Sound) sub-market that’s in the most trouble.”

The Seattle-based appraiser/market analyst says Downtown Seattle is suffering through the aftermath of what he says those in the local industry are calling “The Perfect Storm.” Just as the massive weather phenomenon that hit the Eastern seaboard in the early 1990′s, O’Connor says, “All the right forces came together,” referring to the dot-com implosion followed by the horrific events of September 11. “It was an issue of timing,” he says. “And, bang, 1,000 to 1,500 units came online right when everything turned upside-down.”

O’Connor tells GlobeSt.com, “I’ve been following the Downtown apartment market for 15 years, and I’ve never seen vacancy here over 5%.” But with a glut of supply, he says occupancy isn’t what it used to be. Preliminary results from market studies his firm is now conducting indicate the rate is currently about 13%.

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