New towers are changing Seattle's skyline and raising the international profile (credit: Destination 360).
SEATTLE—Since the start of the current boom in 2010, Seattle has grown at an unprecedented rate. With dozens of projects still underway, this construction boom continues to deliver.
Downtown is home to the largest share of that growth, according to a mid-year report by Downtown Seattle. This continued investment shows a high level of confidence in the metro and contributes to a strong economy. Downtown is reporting a historic level of investment with $5.6 billion worth of projects under construction, topping a previous high of $5 billion one year ago.
Impressive new towers are changing Seattle's skyline and raising the city's international profile. Apartments continue to lead the way, adding record numbers of new units in the past few years, much of that in the South Lake Union and Denny Triangle neighborhoods. In fact, the majority, some 60% of all projects under construction, include a residential component—mostly apartments.
Office space and hotel rooms are also being constructed at unprecedented rates. Downtown office construction has rebounded to nearly match its 2015 peak. In 2017, downtown Seattle had more office construction than any other US central business district, representing 20% of all CBD office construction in the nation.
Downtown will also welcome a record 2,192 new hotel rooms in 2018. This includes what will be the largest hotel in Seattle upon completion: the 1,260-room Hyatt Regency near the future home of the Washington State Convention Center addition.
The $5.6 billion value of current construction is 27% higher than last year and nearly five times higher than in 2010—the decade's lowest point. Downtown represents 58% of the construction value for permits issued in Seattle during the 12 months between June 2017 and June 2018 (up from 50% for the same period last year).
Downtown Seattle has 224 projects currently in the pipeline—nearly as many as were completed in the previous eight years. The largest share of scheduled deliveries is in 2020 with 90 projects scheduled for completion. Even if half of those in predevelopment are canceled, delayed or put on hold due to changes in the economy or other factors, annual deliveries through 2020 will be close to the historic average.
Of the 224 projects working their way through the pipeline, 65 are under construction. Seven are in demolition, shoring and excavation phases. Another 27 have land-use permits but are awaiting building permits. The largest share (125 projects) is in predevelopment. From 2018 through 2020, on average, 52 projects are scheduled for completion per year. This is slightly above the historic average of 44 projects delivered per year since 2005.
“As the downtown residential and job population keep growing at rapid rates, we're finding that we have no shortage of storylines,” James Sido, public relations manager of Downtown Seattle, tells GlobeSt.com. “We're about to crack more than 300,000 jobs located in downtown for the first time in our city's history and the downtown residential population will reach 100,000 very soon.”
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Lisa Brown
Lisa Brown is an editor for the south and west regions of GlobeSt.com. She has 25-plus years of real estate experience, with a regional PR role at Grubb & Ellis and a national communications position at MMI. Brown also spent 10 years as executive director at NAIOP San Francisco Bay Area chapter, where she led the organization to achieving its first national award honors and recognition on Capitol Hill. She has written extensively on commercial real estate topics and edited numerous pieces on the subject.
