GlobeSt.com: Which factors have contributed to this recent rebound and exuberance in the region?

Young: The rebound can be attributed to three things: Seattle is a gateway city; the high tech, biotech and aerospace industries give great promise to strong job creation going forward; and finally, the correlation between the city’s high barriers to entry and the number of housing units needed to house the incoming workers.

GlobeSt.com: How has the multifamily investment climate changed in terms of new investors, improving cap rates, etc.?

Young: The investment environment has become very frothy as investors try to get a piece of the pie. Cap rates are in the low 4s for core assets, and in some cases lower, which is 100 basis points lower than a year ago. There will be several trades closing, including Circa and Domaine, that will support this new low-4 cap rate.

GlobeSt.com: What is driving new development activity? Who are the most active developers and where are the hot spots for development?

Young: Currently, new development is being focused on the downtown core market including Belltown, Capitol Hill, Queen Anne, South Lake Union and Ballard. The thought is with the concentration of young professionals working at Amazon, Gates Foundation, Nordstrom and many healthcare and biotech companies, there is a lack of housing. This group (the Y generation) wants housing in the urban core near jobs, entertainment and transit. The developers include Vulcan, Wood, HB, Harbor Urban, Goodman, Holland, Bentall Kennedy and Gering Edlen, to name a few. New projects include Viktoria, Via 6, Belltown Flats and Coppin Wells.

GlobeSt.com: How does the Puget Sound multifamily investment and development activity compare to other key markets on the West Coast and throughout the US?

Young: The Puget Sound market is, and will remain, one of the most sought-after markets in the country based on state of economy, quality job creation, demographics, the relative affordability based on type of jobs vs. rental rates, and the upside associated with this. This region is on par with NYC, San Francisco and L.A. as far as investor interest.

GlobeSt.com: What does the future hold for the Puget Sound multifamily market? Will this momentum continue and why?

Young: With the impressive growth of the innovative companies located here, quality of life in the Pacific Northwest, barriers to entry for new development and the location near world-reaching ports, the momentum of this recent uptick will continue.