Search
 

Apartment Report: Demand Pulling Up Rents

SEATTLE-Vacancy is on pace to fall to its lowest level since 2001, allowing property owners to raise rents and begin to withdraw concessions in many submarkets. The improving fundamentals are pushing up sale prices.

By Brian K. Miller | Updated on September 12, 2005

SEATTLE-Solid gains in employment are strengthening tenant demand, lowering vacancy and allowing owners in some submarkets to push rents or achieve high sale prices to new owners who will push rents and/or get rid of incentives, such as free rent. That is according to the latest apartment market research report by Marcus & Millichap Real Estate Investment Brokerage Co.

“Vacancy is on pace to fall to its lowest level since 2001, which is allowing property owners in many submarkets to raise rents and begin to withdraw concessions,” says Gregory Wendelken, regional manager of M&M’s Seattle office.

Vacancy is dropping in part because payrolls are expanding. Employers in the Puget Sound region are expected to add a total of 46,400 jobs in 2005. “The manufacturing sector, which has been the biggest drag on the local economy in recent years, appears to be stabilizing,” according to the report. “Boeing has begun hiring again after reducing its work force by nearly 40% in previous years.”

Want to continue reading?
Become a Free ALM Digital Reader.

Once you are an ALM digital member, you’ll receive:

  • Unlimited access to GlobeSt and other free ALM publications
  • Access to 15 years of GlobeSt archives
  • Your choice of GlobeSt digital newsletters and over 70 others from popular sister publications
  • 1 free article* every 30 days across the ALM subscription network
  • Exclusive discounts on ALM events and publications

*May exclude premium content
Already have an account?

NOT FOR REPRINT

© 2024 ALM Global, LLC, All Rights Reserved. Request academic re-use from www.copyright.com. All other uses, submit a request to [email protected]. For more information visit Asset & Logo Licensing.

GlobeSt

Join GlobeSt

Don't miss crucial news and insights you need to make informed commercial real estate decisions. Join GlobeSt.com now!

  • Free unlimited access to GlobeSt.com's trusted and independent team of experts who provide commercial real estate owners, investors, developers, brokers and finance professionals with comprehensive coverage, analysis and best practices necessary to innovate and build business.
  • Exclusive discounts on ALM and GlobeSt events.
  • Access to other award-winning ALM websites including ThinkAdvisor.com and Law.com.

Already have an account? Sign In Now
Join GlobeSt

Copyright © 2024 ALM Global, LLC. All Rights Reserved.