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Insights and Trends in the Seattle Market. A Comprehensive Data and Analysis of Market Dynamics & the Development Pipeline.
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INSIGHTS & TRENDS IN THE SEATTLE MARKET
Dylan Simon Jerrid Anderson
SEATTLE MULTIFAMILY TEAM
Matt Laird
COLLIERS INTERNATIONAL
SEATTLE APARTMENT MARKET STUDYComprehensive Data & Analysis of Market Dynamics & Development Pipeline
The market does not trade upon what everybody knows, but upon what those with the best information can foresee.
William Hamilton
2016 Seattle Apartment Market Study
WWW.DYLANSIMON.COM 1
Matt LairdAssociateO 206 624 7416M 425 736 [email protected]
Dylan SimonVice PresidentO 206 624 7413M 206 414 [email protected]
Jerrid AndersonAssociateO 206 382 8555M 206 499 [email protected]
Ashley WoodliffProject CoordinatorO 206 223 [email protected]
Who We Are
Colliers Seattle Multifamily Team is a team of dedicated, expert commercial real estate brokers working for apartment owners, developers and investors.
Our goal is to help you maximize your return on investment, whether that is selling your apartment building faster and for more money or ensuring your purchase is a sound investment; we believe in building a long-term relationship, not just brokering a transaction.
Our 2016 Seattle Apartment Market Study is a prime example of our approach to advising our clients. By giving our clients a better understanding of current and future market dynamics we believe our clients are empowered to make better decisions and achieve higher returns. This is Brokerage Evolved.
If you have a question about our market study or want us to help you understand how market dynamics are impacting your investments, just give us a call, wed be happy to help.
Dylan SimonVice President
2016 Seattle Apartment Market Study
COLLIERS INTERNATIONAL SEATTLE2
Our team is decidedly diverse, to meet the needs of our clients and provide the highest level of brokerage services. We take a unique approach to the business, serving a complementary set of clients in the market in order to understand the market better than anyone and delivering that market knowledge to our clients.
LAND/DEVELOPMENTTRANSACTIONS
INSTITUTIONAL CLIENTS
50 UNIT - 500 UNITTRANSACTIONS
PRIVATE CLIENTS
5 UNIT - 50 UNITTRANSACTIONS
Our process is unique to the industry and provides our clients the greatest advantage over the marketplace. It leverages market expertise, use of technology and continuous thought leadership in order to provide our clients an unmatched level of service.
Our Listings Reach the Most Investors :: We reach over 7,500 commercial real estate professionals on a weekly basis, ensuring complete market coverage.
Our Marketing Turns Heads :: Our materials are often heralded as the absolute best in the business, getting more looks and more offers.
Our Research & Investment Advice Creates Trust :: Investors care about what we say, leading to higher sales prices for our clients.
Our unique process creates an advantage for our clients. Allow us to turn our expertise into
your profit.
How We Work For You
2016 Seattle Apartment Market Study
WWW.DYLANSIMON.COM 3
Our ResultsThe Proof is in Our Results. Our Process = Your Profit
EXPERTISE IN THE URBAN CORE
Pearl Apartments80 Unit Mixed-Use
in Heart of Capitol Hill
$33,500,000 Sales PriceRepresented Off-Market Buyer
SOPHISTICATED LAND DISPOSITIONS
GridIron Development107 Unit Residential Development
$6,000,000 Sales PriceComplicated Adaptive Reuse of Historic Building
Fully Marketed
REPRESENTING PRIVATE CLIENTS
Urbane Redmond20 Unit Mixed Use Jewel-Box Asset
$9,500,000 Sales PriceRecord Setting $450,000 / Unit
Fully Marketed
INSTITUTIONAL VALUE-ADD TRANSACTIONS
Lake Fenwick Estates216 Unit Value-Add in High-Growth Market
$32,075,000 Sales PriceTop Sales Price in South King County Market
Fully Marketed
2015 REPRESENTATIVE SALES
2016 Seattle Apartment Market Study
COLLIERS INTERNATIONAL SEATTLE4
NORTH SNOHOMISH
SOUTH SNOHOMISH
NORTH KING
SOUTH KING
EAST KINGEASTBELLEVUE
FACTORIA
WOODINVILLE
JUANITA
REDMOND
BOTHELLSHORELINE
MOUNTLAKE TERRACE
EDMONDS
LYNNWOOD MILL CREEK
THRASHERS CORNER
CENTRALEVERETT
PAINE FIELD
SILVER LAKE
ISSAQUAH
AUBURN
KENT
SEATTLE
NORTH SEATTLE
FEDERALWAY
WHITECENTER
SEATAC
BURIEN
DESMOINES
RIVERTON/TUKWILA
RENTON
URBAN KING
2016 Seattle Apartment Market Study
WWW.DYLANSIMON.COM 5
Table of Contents2015 Year in Review 82015 Metrics & Fundamentals2016 Development Pipeline2000-2015 Job Growth
Urban King 18Downtown South Downtown/Pioneer Square Capitol Hill First Hill/Yesler Terrace BelltownQueen Anne South Lake UnionCentral District/Beacon Hill/Rainier ValleyGreenlake/Wallingford/FremontUniversity DistrictWest SeattleBallardWest BellevueKirkland
North King 52BothellShorelineNorth Seattle
East King 60 East BellevueFactoriaIssaquahJuanitaRedmondWoodinville
South King 68AuburnBurienDes MoinesFederal WayKentRentonRiverton/TukwilaSeaTacWhite Center
North Snohomish 78Central EverettPaine FieldSilver Lake
South Snohomish 86EdmondsLynnwoodMill CreekMountlake TerraceThrashers Corner
Sources 92
This study would not be possible without an amazing amount of hard work from our team and data providers, the latter of which are listed by category on page 92. We would like to extend special thanks to Dupre + Scott and encourage all readers
to subscribe as a direct source of data and analyticsfar beyond the snapshot we provide here. Subscribe at WWW.DUPRESCOTT.COM
2015 YEAR IN REVIEW
2015 YEAR IN REVIEW
2016 Seattle Apartment Market Study
COLLIERS INTERNATIONAL SEATTLE8
2015
YEA
R IN
REV
IEW
Sales Data: 50+ units
Seattle by the numbers...NUMBER ONE city to find a job (WalletHub, 2015)1 SECOND best place in the country to own rental propery (All Property Management, 2015)2 THIRD highest median salary in the country (Forbes, 2015)3 FOURTH richest city in the U.S. (USA Today, 2015)4 FIFTH fastest growing city in the U.S. (Forbes, 2015)5
If ever Seattle experienced a break-out year from the standpoint of economic vibrancy and global attention, 2015 will mark that year. So too tracked the health and expansion of Seattles apartment market.
The pace at which new jobs were created and added to the Seattle economy in 2015 serves to hallmark the regions economic vigor. Over 60,000 jobs were created regionally this past year, besting the 50,000 jobs added in each of 2013 and 2014 by nearly 20%. Real wage inflation served as the cherry on top.
Apartment developers stood prepared to meet the regions demand. In 2015 over 10,000 apartments were delivered in the region with King County accounting for more than 90% of deliveries. Vacancy rates held at or below 4% in each of King and Snohomish Counties and each county experienced 8.6% rent growth continuing a two-year trend of +8% y-o-y rent growth.
Investment sales set new records well-beyond any previous peak. King and Snohomish counties experienced $3.7B in sales, a 37% gain over peak sales in 2014. Institutional investors led the march, setting new heights in values on both a price-per-unit and price-per-net rentable square foot basis.
Over 60,000 jobs were created regionally this past year, besting the 50,000 jobs added in each of 2013 and 2014 by nearly 20%. Real wage inflation served as the cherry on top.
2010 2011 2012 2013 2014 2015
Number of Sales 29 38 71 52 80 90
Total Sales Volume $545.6M $1.0B $2.1B $1.7B $2.6B $3.7B
Average PPU $130,171 $139,630 $167,123 $206,672 $193,804 $218,436
Average PPSF $150 $169 $188 $233 $238 $272
Average Cap Rate 5.9% 5.7% 5.5% 5.3% 5.3% 5.1%
Total Deliveries 3,686 1,318 4,426 5,986 8,128 10,179
2016 Seattle Apartment Market Study
WWW.DYLANSIMON.COM 9
2015 YEAR IN REVIEW
2015 MARKET METRICS & FUNDAMENTALSURBAN KING NORTH KING EAST KING SOUTH KING NORTH SNOHOMISH SOUTH SNOHOMISH
2015
Sal
es
29SALES
5SALES
6SALES
31SALES
10SALES
9SALES
$1.95BSALES VOLUME
$230.9MSALES VOLUME
$301.9MSALES VOLUME
$666.4MSALES VOLUME
$257.6MSALES VOLUME
$323.5MSALES VOLUME
$382,231AVERAGE PPU
$203,478AVERAGE PPU
$310,087AVERAGE PPU
$123,243AVERAGE PPU
$129,697AVERAGE PPU
$161,883AVERAGE PPU
$529AVERAGE PPSF
$247AVERAGE PPSF
$369AVERAGE PPSF
$150AVERAGE PPSF
$151AVERAGE PPSF
$188AVERAGE PPSF
4.4% AVERAGE CAP RATE
4.8% AVERAGE CAP RATE
4.8% AVERAGE CAP RATE
5.5% AVERAGE CAP RATE
5.4% AVERAGE CAP RATE
5.4% AVERAGE CAP RATE
Fund
amen
tals
$1,845AVERAGE RENTAL RATE
$1,303AVERAGE RENTAL RATE
$1,607AVERAGE RENTAL RATE
$1,115AVERAGE RENTAL RATE
$1,125AVERAGE RENTAL RATE
$1,281 AVERAGE RENTAL RATE
7.1% ANNUAL RENT GROWTH
9.1%ANNUAL RENT GROWTH
8.2%ANNUAL RENT GROWTH
8.6%ANNUAL RENT GROWTH
9.3%ANNUAL RENT GROWTH
7.7%ANNUAL RENT GROWTH
4.0% VACANCY
2.8%VACANCY
3.8%VACANCY
3.8%VACANCY
4.0%VACANCY
3.8%VACANCY
Deve
lopm
ent 6,449
UNITS DELIVERED545
UNITS DELIVERED1,771
UNITS DELIVERED345
UNITS DELIVERED322
UNITS DELIVERED747
UNITS DELIVERED
9% OF URBAN KING
INVENTORY
3% OF NORTH KING
INVENTORY
5% OF EAST KING
INVENTORY
1% OF SOUTH KING
INVENTORY
2% OF NORTH SNOHOMISH
INVENTORY
4% OF SOUTH SNOHOMISH
INVENTORY
SIXTH best city for Millenials in America (Niche, 2015)6 SEVENTH best city for employee satisfaction (WalletHub, March 2014)7 EIGHTH most walkable city (Redfin, 2015)8 NINTH greenest city in America (Nerdwallet, 2015)9 TENTH best city for singles (Nerdwallet, 2015)10
Rent & Vacancy Data Provided by Dupre + Scott For more comprehensive data, visit: www.duprescott.com
2016 Seattle Apartment Market Study
COLLIERS INTERNATIONAL SEATTLE10
2015
YEA
R IN
REV
IEW
2015 RENT GROWTH
URBAN KING7.1%
12 MONTH GROWTH
24.4% 3 YEAR GROWTH
42.4%5 YEAR GROWTH
NORTH SNOHOMISH9.3%
12 MONTH GROWTH23.2% 3 YEAR GROWTH
33.6%5 YEAR GROWTH
7.7%3 YEAR AVERAGE
SOUTH SNOHOMISH7.7%
12 MONTH GROWTH25.0% 3 YEAR GROWTH
40.2%5 YEAR GROWTH
8.3%3 YEAR AVERAGE
CUMULATIVE GROWTH
EAST KING8.2%
12 MONTH GROWTH
26.3% 3 YEAR GROWTH
41.6%5 YEAR GROWTH
8.8%3 YEAR AVERAGE
SOUTH KING8.6%
12 MONTH GROWTH
21.7% 3 YEAR GROWTH
29.2%5 YEAR GROWTH
7.2%3 YEAR AVERAGE
Rent & Vacancy Data Provided by Dupre + ScottFor more comprehensive data, visit: www.duprescott.com
CU
MU
LATI
VE G
RO
WTH
CUMULATIVE GROWTH
CU
MU
LATI
VE G
RO
WTH
CUM
ULAT
IVE
GROW
TH
North Snohomish, North King and South King were the slowest growing markets in 2014 yet, in 2015 they had the fastest y-o-y rent growth.
OUR MARKET INSIGHT
8.1%3 YEAR AVERAGE
CUM
ULA
TIVE
GRO
WTHNORTH KING
9.1%12 MONTH GROWTH
25.3% 3 YEAR GROWTH
33.9%5 YEAR GROWTH
CUM
ULAT
IVE
GROW
TH
8.4%3 YEAR AVERAGE
2016 Seattle Apartment Market Study
WWW.DYLANSIMON.COM 11
2015 YEAR IN REVIEW
2015 VACANCY TRENDS YEAR-OVER-YEAR
Submarket Vacancy Overview
GG4:X32
0.00%
1.00%
2.00%
3.00%
4.00%
5.00%
6.00%
7.00%
URBAN EASTNORTH SOUTH NORTH SOUTH
KING COUNTY SNOHOMISH COUNTY
.29%
.61%
.16%
.61%
.48%
.19%
(.10%)
(.71%)
(.36%)
(.08%)
.03% .61% .61%
1.74%
.08%
.49%
(.19%)
(.40%)
(.67%)
(1.47%)
.94%
.38%
.55% .81%
.38%
(.70%)(.56%)
(.55%)(.10%)
1.28%
.37%.99% (1.78%)
(.72%)
(.97%)
(1.14%)
(.10%)
(.03%)
.02%
South
Lake
Unio
n
Juan
ita
East
Belle
vue
.47%
ANNUAL CHANGE IN VACANCY FALL 2014- FALL 2015
Vacancy Data Provided by Dupre + ScottFor more comprehensive data, visit: www.duprescott.com
Increase in year-over-year vacancy Decrease in year-over-year vacancy
OUR MARKET INSIGHTIn 2015, over 10,000 apartment units were delivered in King and Snohomish Counties, yet in 38 of 40 markets vacancy rates measured less than a 1% increase year-over-year - 18 showing further compression in vacancy rates.
2016 Seattle Apartment Market Study
COLLIERS INTERNATIONAL SEATTLE12
2015
YEA
R IN
REV
IEW
VS4,400UNITS
3,861 UNITS PLANNED AS OF DEC 2014
VS5,985UNITS
5,594 UNITS PLANNED AS OF DEC 2014
1,063units
1,696units
2,102units
1,124units
WESTBELLEVUE
URBAN KING DEVELOPMENT PIPELINE
2016 2017 2018 2019 FUTURE
VS8,785UNITS
6,241UNITS PLANNED AS OF DEC 2014
DOWNTOWN
2,138units
1,174units
1,040units
591units
3,842units
DELIVERIES BY YEAR2016 9,0512017 12,6652018 13,1942019 1,403Future 22,160
VS48,726
UNITS PLANNED AS OF DEC 2014
58,473 UNITS PLANNED76% OF KING COUNTY PIPELINE
68% OF TOTAL PIPELINE
VS13,133UNITS
10,445 UNITS PLANNED AS OF DEC 2014
SOUTH LAKE UNION
1,910units
4,140units
5,433units
1,650units
CENTRAL/BEACON HILL/
RAINIER VALLEY
1,776units
533units
559units
1,411units
121 units
2016 Seattle Apartment Market Study
WWW.DYLANSIMON.COM 13
2015 YEAR IN REVIEW
VS1,824UNITS
1,169UNITS PLANNED AS OF DEC 2014
QUEEN ANNE
692units
468units
405units
56
259units
VS3,740UNITS
3,624UNITS PLANNED AS OF DEC 2014
VS2,470UNITS
2,277UNITS PLANNED AS OF DEC 2014
WEST SEATTLE
581units
1,290units
496units
214
VS4,647UNITS
2,905UNITS PLANNED AS OF DEC 2014
VS2,150UNITS
1,850 UNITS PLANNED AS OF DEC 2014
GREENLAKE/ WALLINGFORD/
FREMONT
572units
913units582
units
83 units
2016 2017 2018 2019 FUTURE
VS850UNITS
779UNITS PLANNED AS OF DEC 2014
S. DOWNTOWN/ PIONEER SQUARE
278 units
436 units
VS1,387UNITS
1,553UNITS PLANNED AS OF DEC 2014
BALLARD
373units
584units
367units
VS1,295UNITS
1,535UNITS PLANNED AS OF DEC 2014
KIRKLAND
50 units
136 units
63 units
103 units
125units900
units220units
2,089units
464units
552units
1,542units
BELLTOWN
FIRST HILL/YESLER
TERRACE
1,106units
406units
275units
1,953units
VS3,498UNITS
1,913UNITS PLANNED AS OF DEC 2014
1,571units
110 units
683units
1,134unitsUNIVERSITY
DISTRICT
VS4,309UNITS
3,342UNITS PLANNED AS OF DEC 2014
22 units
CAPITOL HILL
1,304units
1,136units
1,204units
643units
2016 Seattle Apartment Market Study
COLLIERS INTERNATIONAL SEATTLE14
2015
YEA
R IN
REV
IEW
VS4,739UNITS
5,765UNITS PLANNED AS OF DEC 2014
2,666units
1,105units
800units
168 units
SOUTH KING
VS10,499
UNITS
7,573UNITS PLANNED AS OF DEC 2014
3,974units
1,993units
1,814units
2,372units
346 unitsEAST KING
SUBURBAN KING DEVELOPMENT PIPELINE
2016 2017 2018 2019 FUTURE
VS5,265
UNITS PLANNED AS OF DEC 2014
2016 SNOHOMISHCOUNTY PIPELINE
5,325UNITS
PLANNED
VS65,489
UNITS PLANNED AS OF DEC 2014
2016 KINGCOUNTY PIPELINE
80,042UNITS
PLANNED
VS6,331UNITS
3,425UNITS PLANNED AS OF DEC 2014
591
3,360units
682units
1,349 units
940units
NORTH KING
VS1,725UNITS
2,146UNITS PLANNED AS OF DEC 2014
1,532units
193units
NORTH SNOHOMISH
VS3,600UNITS
3,119UNITS PLANNED AS OF DEC 2014
1,101units
598units
507units
516units
878units
SOUTH SNOHOMISH
SNOHOMISH COUNTY SUBURBAN DEVELOPMENT PIPELINE
2016 Seattle Apartment Market Study
WWW.DYLANSIMON.COM 15
2015 YEAR IN REVIEW
REGIONAL JOB GROWTH
0
100,000
200,000
300,000
400,000
500,000
600,000
*Due to incomplete employment data for Nov.-Dec. 2015, the existing data was annualized and trended by industry for the six different submarkets.
STEM JOBGROWTH
14%IN LAST 4 YEARS
24% IN LAST 10 YEARS
39,093 OTHER SERVICES
6,029FIRE
HOTTEST & COLDEST job growth in the last 3 years
JOB
S
28,400JOBS2011
40,600JOBS2012
50,600JOBS2013
52,800JOBS2014
YEAR-OVER-YEAR GROWTH
61,900JOBS2015
Construction/Manufacturing Wholesale/Retail Trade/Transportation/Utilities Professional/STEM FIRE Other Services Government
Since 2010, the region has added +10,000 new Professional/STEM jobs nearly every year. 2015 was the strongest year of hiring yet, with 13,664 Professional/STEM employees hired regionally.
OUR MARKET INSIGHT
URBAN KING ::
Downtown South Downtown/Pioneer Square Capitol Hill First Hill/Yesler Terrace BelltownQueen Anne South Lake Union
Central District/Beacon Hill/Rainier ValleyGreenlake/Wallingford/FremontUniversity DistrictWest SeattleBallardWest BellevueKirkland
MARKET SNAPSHOT
MARKET OVERVIEW URBAN KING
AVERAGE RENTPER SF $2.4536,3132016-2019 DELIVERIES
4.0%VA
CANC
Y 151413
12
11
10
9
8
7
6
5
4
3
2
1
0
----
----
----
2016 Seattle Apartment Market Study
COLLIERS INTERNATIONAL SEATTLE18
URBA
N KI
NG
Seattle
Bellevue
Redmond
Mercer Island
Sammamish
Bainbridge Island
Kirkland
Issaquah
WA 900
URBAN KINGThe regions urban-located, core neighborhoods remain the focal-point of developers and investors alike. The 14 neighborhood markets comprising Urban King are undoubtedly the most watched in the region and for that purpose alone are afforded analysis with the greatest level of granularity.
This past year marked the first year when a slew of new development was set for delivery and economic fundamentals proved strong so strong that proposed development continues to expand into future years. As of December 2014, less than 2,000 units were planned for delivery in 2018. That figure has risen to over 13,000 units.
The interest in development in these markets is no surprise given stable fundamentals. The investment sales market provides further incentive to keep developing fueled by sales prices on a PPU and PPSF basis hitting new milestones. Urban King will remain a market to watch in 2016.
Sales: Buildings 50+ units
HISTORICAL PERFORMANCE2010 2011 2012 2013 2014 2015
Number of Sales 9 8 19 17 29 29Sales Volume $232.6M $250.9M $749M $784M $1.14B $1.95BAverage PPU $200,169 $212,193 $277,864 $310,934 $305,925 $382,231Average PPSF $280 $326 $381 $437 $428 $529Average Cap Rate 5.2% 5.2% 4.8% 4.6% 4.5% 4.4%Number of Deliveries 2,645 620 2,696 4,060 5,155 6,449
As of December 2014, less than
2,000 units were planned for delivery in 2018. That figure has risen to over
13,000 units.
KIRKLAND
WESTBELLEVUE
WEST SEATTLE
DOWNTOWN
SOUTHDOWNTOWN/
PIONEERSQUARE
QUEENANNE
SOUTH LAKE UNION
BELLTOWN
BALLARDGREENLAKE/
WALLINGFORD/FREMONT
UNIVERSITY DISTRICT
CAPITOL HILL
FIRSTHILL
CENTRAL DISTRICT/
BEACON HILL/RAINIER VALLEY
2016 Seattle Apartment Market Study
WWW.DYLANSIMON.COM 19
URBAN KING
Rent Comparables Report Data
$0
$200
$400
$600
$800
$1,000
$1,200
$1,400
$1,600
$1,800
$2,000
Spring2000
Fall2000
Spring2001
Fall2001
Spring2002
Fall2002
Spring2003
Fall2003
Spring2004
Fall2004
Spring2005
Fall2005
Spring2006
Fall2006
Spring2007
Fall2007
Spring2008
Fall2008
Spring2009
Fall2009
Spring2010
Fall2010
Spring2011
Fall2011
Spring2012
Fall2012
Spring2013
Fall2013
Spring2014
Fall2014
Spring2015
Fall2015
2016 2017 2018 201
Rent Comparables Data - 1/7/2016 - Page 1 of 2This information is from our surveys for The Apartment Vacancy Report, B) Copyright by Dupre + Scott Apartment Advisors, Inc.
Rent Comparables Report Data
$0
$200
$400
$600
$800
$1,000
$1,200
$1,400
$1,600
$1,800
$2,000
Spring2000
Fall2000
Spring2001
Fall2001
Spring2002
Fall2002
Spring2003
Fall2003
Spring2004
Fall2004
Spring2005
Fall2005
Spring2006
Fall2006
Spring2007
Fall2007
Spring2008
Fall2008
Spring2009
Fall2009
Spring2010
Fall2010
Spring2011
Fall2011
Spring2012
Fall2012
Spring2013
Fall2013
Spring2014
Fall2014
Spring2015
Fall2015
2016 2017 2018 201
Rent Comparables Data - 1/7/2016 - Page 1 of 2This information is from our surveys for The Apartment Vacancy Report, B) Copyright by Dupre + Scott Apartment Advisors, Inc.
Vacancy Rate
MARKET FUNDAMENTALS URBAN KING
Mon
thly
Ren
t
Monthly Rent Vacancy Rate Units Delivered Units Planned
24,976 UNITS DELIVERED
2,696
4,060
5,155
Rent & Vacancy Data Provided by Dupre + ScottFor more comprehensive data, visit: www.duprescott.com
2015
2014
$1,845AVG RENT PER UNIT
$1,723AVG RENT PER UNIT
$2.45AVG RENT PER SF
$2.33AVG RENT PER SF
4.0%VACANCY
3.8%VACANCY
7.1% 5.2% 20 BP
Even with record delivery of new apartment units in Urban King in 2015, rental rates continue to rise while vacancy is stable at 4.0%. The quantum of delivery of new apartment units begins a massive ascension in 2016 with over 9,000 units planned for delivery. During 2017 2019 another 27,000 units are planned, with even more developments in early planning stages. The coming years will test the resilience of many neighborhoods within Urban King.
OUR MARKET INSIGHT
0.00%
1.00%
2.00%
3.00%
4.00%
5.00%
6.00%
7.00%
8.00%
9.00%
10.00%
$0
$200
$400
$600
$800
$1,000
$1,200
$1,400
$1,600
$1,800
$2,000
Spring2000
Fall2000
Spring2001
Fall2001
Spring2002
Fall2002
Spring2003
Fall2003
Spring2004
Fall2004
Spring2005
Fall2005
Spring2006
Fall2006
Spring2007
Fall2007
Spring2008
Fall2008
Spring2009
Fall2009
Spring2010
Fall2010
Spring2011
Fall2011
Spring2012
Fall2012
Spring2013
Fall2013
Spring2014
Fall2014
Spring2015
Fall2015
2016 2017 2018 2019
1,046619
1,078 942 807 883
1,389
3,351
2,645
620
1,7172,111
6,449
5,155
9,05112,665 13,194
1,403
2000
2001
2002
2003
2004
2005
2006
2007
2008
2009
2010
2011
2012
2013
2014
2015
2016
2017
2018
2019
36,313UNITS PLANNED
2016 Seattle Apartment Market Study
COLLIERS INTERNATIONAL SEATTLE20
URBA
N KI
NG
EMPLOYMENT GROWTHURBAN KING
*Due to incomplete employment data for Nov.-Dec. 2015, the existing data was annualized and trended by industry for the six different submarkets.
0
20,000
40,000
60,000
80,000
100,000
120,000
140,000
160,000
180,000
200,000
JOB
S
15,798 JOBS2011
15,916 JOBS2012
21,351JOBS2013
16,022JOBS2014
YEAR-OVER-YEAR GROWTH
26,747JOBS2015
Construction/Manufacturing Retail/Service Trade/Transportation/Utilities Professional/STEM FIRE Education/Healthcare Government
STEM JOBGROWTH
18%IN LAST 4 YEARS
40% IN LAST 10 YEARS
23,734 RETAIL & SERVICES
1,870TRADE, TRANSPORATION &
UTILITIES
HOTTEST & COLDEST job growth in the last 3 years
In a recently published study data has shown that for every new Professional/STEM job, four more jobs are created. The current ratio for Urban King Professional/STEM jobs to all other jobs is 1:2.35 which is a signal to expect robust job creation in the other six job sectors in the near future.
OUR MARKET INSIGHT
2016 Seattle Apartment Market Study
WWW.DYLANSIMON.COM 21
URBAN KING
URBANKINGCOUNTY2014SALES
1940
1950
1960
1970
1980
1990
2000
2010
2020
$0 $100,000 $200,000 $300,000 $400,000 $500,000 $600,000 $700,000
YearBuilt
SalePrice(PPU)
1940
1950
1960
1970
1980
1990
2000
2010
2020
$0 $100 $200 $300 $400 $500 $600 $700 $800 $900
YearBuilt
SalePrice(PPSF)
2015 SALES & HISTORICAL SALES TRENDSURBAN KING
2000-2015 URBAN KING SALES TRENDS
$138 $150$172
$154 $163
$209
$269$311
$339
$213
$280
$326
$381
$437 $428
$529
$0
$100
$200
$300
$400
$500
$600
2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015
SalePrice(PPSF)
Year
7.3% 7.3%7.0%
6.5%
5.7%
5.0% 5.0%4.5% 4.5%
5.8%
5.2% 5.2%4.8% 4.6% 4.5% 4.4%
0.0%
1.0%
2.0%
3.0%
4.0%
5.0%
6.0%
7.0%
8.0%
2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015
CapRate
Year
CustomApartmentInvestmentReport1/13/2016Page1of1Source:TheApartmentInvestmentReport,Copyright2006byDupre+ScottApartmentAdvisors,Inc.
2015 URBAN KING SALES METRICS
2016 Seattle Apartment Market Study
COLLIERS INTERNATIONAL SEATTLE22
2015 Downtown Sales
Property Name Address Year Built Units NRSFAvg Unit
Size Price Sale Date $/Unit $/NRSFCap Rate
BuyerSeller
1 Premiere on Pine 815 Pine Street 2015 386 307,827 797 $243,350,000 7/9/2015 $623,974 $791 3.7%HeitmanHolland Partners
Average 2015 386 307,827 797 $243,350,000 $623,974 $791 3.7%
Seattle2nd Avenue Extension South
4th AvenueA
laskan Way S
outh 4th
Aven
ue S
outh
Denny Way
Elliott Avenue
2nd Avenue
Elliott Avenue West
WA 304
WA 305
Broa
d Stre
et
Alaskan Way
23rd
Ave
nue
Eas
t
Bro
adw
ay E
ast
East Union Street
East Cherry Street
East Yesler Way
23rd
Ave
nue
12th
Ave
nue
Sou
th
Broadw
ay
23rd Avenue South
East M
adison
Street
5th
Aven
ue S
outh
9th
Aven
ue N
orth
Wes
tlake
Ave
nue
Nor
th Fairview Avenue N
orth
Denny Way
Olive W
ay8th Avenue
Dex
ter A
venu
e
East
Oliv
e W
ay
Elliott Avenue
Pine S
treet
East Pike Street
Madis
on Str
eet
Pike S
treet
7th Avenue
6th Avenue
Yesler Way
James
Street
5th Avenue
3rd Avenue
Boren Avenue
1st Avenue
East Pine Street
Western Avenue
South Jackson Street
19th
Ave
nue
East Thomas Street
15th
Ave
nue
East Jefferson Street
11th Avenue
East Union Street
Boy
lsto
n Av
enue
Eas
t Harvard Avenue East
Bel
levu
e Av
enue
8th Avenue
Minor Avenue
12th Avenue East
12th Avenue
14th
Ave
nue
Sou
th
6th
Aven
ue S
outh
Virgin
ia St
reet
Terry Avenue
Leno
ra S
treet
Stew
art S
treet
Aur
ora
Aven
ue
9th Avenue
Taylor Avenue
Ceda
r Stre
et
Vine S
treet
2nd
Aven
ue N
orth
Elliott Avenue
Blan
char
d Stre
et
Western Avenue
John Street
South King Street
Madis
on Str
eetMa
rion Str
eet
Unive
rsity S
treet
Spring
Street
Terr
y Av
enue
Nor
th
Bro
adw
ay C
ourt
6th
Aven
ue N
orth
Pine S
treet
7th Avenue
East Pine Street
25th Avenue
24th
Ave
nue
22nd
Ave
nue
Sou
th
25th
Ave
nue
Sou
th
24th
Ave
nue
Sou
th
25th Avenue East24
th A
venu
e E
ast
22nd
Ave
nue
Eas
t
East Pike Street
East Marion Street
19th Avenue
19th
Ave
nue
Sou
th
18th
Ave
nue
Sou
th
20th
Ave
nue
Sou
th
21st
Ave
nue
Sou
th
17th Avenue
17th
Ave
nue
Sou
th
16th
Ave
nue
Sou
th
21st
Ave
nue
18th
Ave
nue
East Columbia Street
East John Court
13th Avenue East
East James Court
15th
Ave
nue
Sou
th
11th Avenue
10th
Ave
nue
14th
Ave
nue
Nagle P
lace
10th
Ave
nue
Eas
t
East James Street
East Union Street
Colum
bia Str
eet
East Denny Way
9th
Aven
ue S
outh
East Spruce Street
East Fir Street
7th
Aven
ue S
outh
East Alder Street
East John Street
Mel
rose
Ave
nue
Eas
t
Sum
mit
Aven
ue
9th Avenue
Belm
ont Avenue
Dillin
g Way
8th
Aven
ue N
orth
21st
Ave
nue
Eas
t
Bell S
treet
DOW
NTOW
N
1
2015
2014
$623.974AVG PRICE PER UNIT
$791AVG PRICE PER SF
3.7%CAP RATE
NO SALES NO SALES NO SALES
Premier on Pine set new sales records in the region, as well as a new precedent of a sub-4% cap rate transaction and pricing on a per-square-foot basis in excess of the regions condominium market.
OUR MARKET INSIGHT
2016 Seattle Apartment Market Study
WWW.DYLANSIMON.COM 23
Downtown Development Pipeline Deliveries2016 2017 2018 2019 FUTURE
591 2,138 1,174 1,040 3,8422016 2017 2018 2019 FUTURE
Numbers within circles on map below indicates number of units in each development.
DOWNTOW
N
Seattle2nd Avenue Extension South
4th AvenueA
laskan Way S
outh 4th
Aven
ue S
outh
Denny Way
Elliott Avenue
2nd Avenue
Elliott Avenue West
WA 304
WA 305
Broa
d Stre
et
Alaskan Way
23rd
Ave
nue
Eas
t
Bro
adw
ay E
ast
East Union Street
East Cherry Street
East Yesler Way
23rd
Ave
nue
12th
Ave
nue
Sou
th
Broadw
ay
23rd Avenue South
East M
adison
Street
5th
Aven
ue S
outh
9th
Aven
ue N
orth
Wes
tlake
Ave
nue
Nor
th Fairview Avenue N
orth
Denny Way
Olive W
ay8th Avenue
Dex
ter A
venu
e
East
Oliv
e W
ay
Elliott Avenue
Pine S
treet
East Pike Street
Madis
on Str
eet
Pike S
treet
7th Avenue
6th Avenue
Yesler Way
James
Street
5th Avenue
3rd Avenue
Boren Avenue
1st Avenue
East Pine Street
Western Avenue
South Jackson Street
19th
Ave
nue
East Thomas Street
15th
Ave
nue
East Jefferson Street
11th Avenue
East Union Street
Boy
lsto
n Av
enue
Eas
t Harvard Avenue East
Bel
levu
e Av
enue
8th Avenue
Minor Avenue
12th Avenue East
12th Avenue
14th
Ave
nue
Sou
th
6th
Aven
ue S
outh
Virgin
ia St
reet
Terry Avenue
Leno
ra S
treet
Stew
art S
treet
Aur
ora
Aven
ue
9th Avenue
Taylor Avenue
Ceda
r Stre
et
Vine S
treet
2nd
Aven
ue N
orth
Elliott Avenue
Blan
char
d Stre
et
Western Avenue
John Street
South King Street
Madis
on Str
eetMa
rion Str
eet
Unive
rsity S
treet
Spring
Street
Terr
y Av
enue
Nor
th
Bro
adw
ay C
ourt
6th
Aven
ue N
orth
Pine S
treet
7th Avenue
East Pine Street
25th Avenue
24th
Ave
nue
22nd
Ave
nue
Sou
th
25th
Ave
nue
Sou
th
24th
Ave
nue
Sou
th
25th Avenue East24
th A
venu
e E
ast
22nd
Ave
nue
Eas
t
East Pike Street
East Marion Street
19th Avenue
19th
Ave
nue
Sou
th
18th
Ave
nue
Sou
th
20th
Ave
nue
Sou
th
21st
Ave
nue
Sou
th
17th Avenue
17th
Ave
nue
Sou
th
16th
Ave
nue
Sou
th
21st
Ave
nue
18th
Ave
nue
East Columbia Street
East John Court13th Avenue E
ast
East James Court
15th
Ave
nue
Sou
th
11th Avenue
10th
Ave
nue
14th
Ave
nue
Nagle P
lace
10th
Ave
nue
Eas
t
East James Street
East Union Street
Colum
bia Str
eet
East Denny Way
9th
Aven
ue S
outh
East Spruce Street
East Fir Street
7th
Aven
ue S
outh
East Alder Street
East John Street
Mel
rose
Ave
nue
Eas
t
Sum
mit
Aven
ue
9th Avenue
Belm
ont Avenue
Dillin
g Way
8th
Aven
ue N
orth
21st
Ave
nue
Eas
t
Bell S
treet
200
200
132
169
428
300
396
340
398
812
706686
550
840
5050
196
450
393
356154
447
372
160
*Indicates Micro. Indicates Possible Condo.
Downtowns development pipeline grew 55% since December 2014, with approximately 3,400 more units currently planned than a year ago. Notably, several new condominiums are currently under development downtown.
OUR MARKET INSIGHT
2016 Seattle Apartment Market Study
COLLIERS INTERNATIONAL SEATTLE24
2015 South Downtown/ Pioneer Square Sales
Rainier Avenue South
South Dearborn Street
WA 304; WA 305
Railroad Way South
1st A
venu
e S
outh
4th Avenue
South Jackson Street
2nd Avenue
Ala
skan
Way
Sou
th
4th Avenue South
WA 304
WA 305
Seattle Boulevard South
Boren Avenue South
East Yesler Way
Bro
adw
ay
Rainier Avenue South
12th
Ave
nue
Sou
th
Jose Rizal Bridge
7th
Aven
ue S
outh
Airport Way South
5th
Aven
ue S
outh
Yesler Way
5th Avenue
3rd
Aven
ue S
outh
East
Fro
ntag
e R
oad
Sout
h
Boren Avenue
1st Avenue
South Jackson Street
East Yesler Way
8th Avenue9th Avenue
12th
Ave
nue
14th Avenue
Golf D
rive South
12th
Ave
nue
Sou
th
15th Avenue South6th
Ave
nue
Sou
th
2nd
Aven
ue S
outh
Western Avenue
South King Street
South Jackson Street
South Main Street
19th
Ave
nue
20th Avenue South
17th
Ave
nue
Sou
th
16th
Ave
nue
South Dearborn Street
South Jackson Place
20th
Ave
nue
South N
orman S
treet
Sturgus Avenue South
13th Avenue
10th Avenue
10th
Ave
nue
Sou
th
15th
Ave
nue
9th Avenue South
East Spruce Street
8th
Aven
ue S
outh
South Addition Street
South Plummer StreetSou
th Charl
es Stree
t
7th
Aven
ue S
outh
South Main Street
May
nard
Ave
nue
Sou
th
Railroad Way South
South Washington Street
3rd Avenue South
South King Street
South Weller Street
S. D
OWNT
OWN/
PI
ONEE
R SQ
UARE
2015
2014
NO SALES
$118,421AVG PRICE PER UNIT
NO SALES
$293AVG PRICE PER SF
NO SALES
4.7%CAP RATE
The South Downtown and Pioneer Square market has a small inventory of market-rate apartments with little y-o-y transaction volume. Due to long-term ownership and historical status, few buildings trade or are re-developed, resulting in an absence of sales activity. With several new developments on the horizon and renewed investor interest in these markets, we expect the sales market to quicken its pace in coming years.
OUR MARKET INSIGHT
2016 Seattle Apartment Market Study
WWW.DYLANSIMON.COM 25
South Downtown/Pioneer Square Development Pipeline
Deliveries2016 2017 2018 2019 FUTURE
278 436 0 0 136
S. DOWNTOW
N/ PIONEER SQUARE
Rainier Avenue South
South Dearborn Street
WA 304; WA 305
Railroad Way South
1st A
venu
e S
outh
4th Avenue
South Jackson Street
2nd Avenue
Ala
skan
Way
Sou
th
4th Avenue South
WA 304
WA 305
Seattle Boulevard South
Boren Avenue South
East Yesler Way
Bro
adw
ay
Rainier Avenue South
12th
Ave
nue
Sou
th
Jose Rizal Bridge
7th
Aven
ue S
outh
Airport Way South
5th
Aven
ue S
outh
Yesler Way
5th Avenue
3rd
Aven
ue S
outh
East
Fro
ntag
e R
oad
Sout
h
Boren Avenue
1st Avenue
South Jackson Street
East Yesler Way
8th Avenue9th Avenue
12th
Ave
nue
14th Avenue
Golf D
rive South
12th
Ave
nue
Sou
th
15th Avenue South6th
Ave
nue
Sou
th
2nd
Aven
ue S
outh
Western Avenue
South King Street
South Jackson Street
South Main Street
19th
Ave
nue
20th Avenue South
17th
Ave
nue
Sou
th
16th
Ave
nue
South Dearborn Street
South Jackson Place
20th
Ave
nue
South N
orman S
treet
Sturgus Avenue South
13th Avenue
10th Avenue
10th
Ave
nue
Sou
th
15th
Ave
nue
9th Avenue South
East Spruce Street
8th
Aven
ue S
outh
South Addition Street
South Plummer StreetSou
th Charl
es Stree
t
7th
Aven
ue S
outh
South Main Street
May
nard
Ave
nue
Sou
th
Railroad Way South
South Washington Street
3rd Avenue South
South King Street
South Weller Street
200 108
125
107
4540
89
82
54
*Indicates Micro. Indicates Possible Condo.
Pioneer Square, as an urban neighborhood, is on the rise with a spate of new retailers and restaurants and a growing number of tech employers and tech incubators. Apartment developers are well-rewarded with rental rates reaching in excess of $3.20 SF.
OUR MARKET INSIGHT
2016 2017 2018 2019 FUTURE
Numbers within circles on map below indicates number of units in each development.
2016 Seattle Apartment Market Study
COLLIERS INTERNATIONAL SEATTLE26
2015 Capitol Hill Sales
SeattleSR
-99
SBA
uror
a Av
enue
Nor
th
South Dearborn Street
15th
Ave
nue
Wes
t
4th Avenue
Edgar Martinez Drive South
Ala
skan
Way
Sou
th
Denny Way
2nd Avenue
Elliott Avenue West
WA 305
Alaskan Way
Mercer Street
24th
Ave
nue
Eas
t
10th
Ave
nue
Eas
t
23rd
Ave
nue
Eas
t
Bro
adw
ay E
ast
East Cherry Street
Mar
tin L
uthe
r Kin
g Ju
nior
Way
Bro
adw
ay
23rd
Ave
nue
Sou
th
East
Madis
on St
reet
Seattle Boulevard South
9th
Aven
ue N
orth
Fairv
iew Av
enue
Nor
th
Denny Way
Olive W
ay8th Avenue East Pike Street
Mercer Street
Madis
on Str
eet
7th Avenue
Yesler Way
James
Street
5th Avenue
1st A
venu
e S
outh
1st Avenue
Western Avenue
Magnolia Bridge
Que
en A
nne
Aven
ue N
orth
1st A
venu
e N
orth
South Jackson Street
East Lynn Street
Madrona D
rive
34th
Ave
nue
32nd
Ave
nue
Eas
t
McG
ilvra
Bou
leva
rd E
ast
19th
Ave
nue
East Yesler Way
East Aloha Street 19th
Ave
nue
Eas
t
31st
Ave
nue
Sou
th
East Jefferson Street
35th
Ave
nue
Sou
th
East Union Street
Har
vard
Ave
nue
Eas
t
12th
Ave
nue
Eas
t
Boston Street
West Olympic Place
West McGraw Street
Gilm
an Drive West
6th
Aven
ue W
est
Magnolia Boulevard West
41st
Ave
nue
Eas
t
East Helen Street
Maiden Lane East
35th
Ave
nue
Eas
t
31st
Ave
nue
36th
Ave
nue
33rd
Ave
nue
Sou
th29t
h Av
enue
Yaki
ma
Aven
ue S
outh
27th
Ave
nue
Eas
t28
th A
venu
e S
outh
29th
Ave
nue
Eas
t
25th
Ave
nue
26th
Ave
nue
Eas
t25
th A
venu
e E
ast
South Norman Street
East Crockett Street
Bel
mon
t Pla
ce E
ast
Har
vard
Ave
nue
Eas
t
East Denny Way
East Alder StreetB
ellevue Avenue East
21st
Ave
nue
Eas
t
South Weller Street
8th
Aven
ue N
orth
Galer Street
McGraw Street
Blaine Street
4th
Aven
ue W
est
West Lee Street
West Boston Street
Property Name Address Year Built Units NRSFAvg Unit
Size Price Sale Date $/Unit $/NRSFCap Rate
BuyerSeller
1 Pearl 1500 E Madison Street 2008 80 54,680 668 $33,500,000 12/23/2015 $372,222 $613 4.0%Equity ResidentialJeff Brotman
2 19th & Mercer 526 19th Avenue E 2013 50 43,475 870 $25,150,000 12/15/2015 $449,107 $578 4.0% Washington Trust BankMeriwether Partners3 Sunset Electric 1111 E Pine Street 2014 92 63,013 664 $42,155,000 3/31/2015 $430,153 $633 4.4% ASB Real Estate InvestmentsWolff Company4 REO Flats 1525 14th Avenue 2013 108 75,459 699 $47,580,000 3/27/2015 $413,739 $631 4.6% ASB Real Estate InvestmentsMadrona Real Estate5 Pine+Minor 1519 Minor Avenue 2013 120 69,231 550 $43,000,000 2/26/2015 $358,333 $621 4.0% Pillar CommunitiesGerding Edlen
Average 2012 90 61,172 690 $38,277,000 $404,711 $615 4.2%
43
CAPI
TOL
HIL
L
2015
2014
$404,711AVG PRICE PER UNIT
$313,554AVG PRICE PER UNIT
$615AVG PRICE PER SF
$454AVG PRICE PER SF
4.2%CAP RATE
4.0%CAP RATE
29.1% 35.5% 20 BP
1
2
5
Capitol Hill remains a favorite neighborhood of developers, investors and renters alike. Sales in 2015 prove a massive up-tick in values as a result of the delivery of ultra-high quality buildings and strong investor demand. Prices on a per-unit and per-square foot basis are beginning to rival new condominium sales prices and high-rise development pricing metrics. Expect more marquee sales in 2016 and beyond.
OUR MARKET INSIGHT
2016 Seattle Apartment Market Study
WWW.DYLANSIMON.COM 27
Capitol Hill Development Pipeline
CAPITOL HILL
Deliveries2016 2017 2018 2019 FUTURE
1,304 1,136 1,204 22 643*Indicates Micro. Indicates Possible Condo.
96
Denny Way
Mercer Street
10th
Ave
nue
Eas
t
23rd
Ave
nue
Eas
tTu
rner
Way
Eas
t
East
Roy S
treet
Lake Washington Boulevard EastB
road
way
Eas
t
East Union Street
23rd
Ave
nue
Bro
adw
ay
East M
adison
Street
Fairv
iew Av
enue
Nor
th
East Denny Way
Olive W
ay
8th Avenue
Stew
art S
treet
East O
live Wa
y
Pine S
treet
East Pike Street
Pike S
treet
7th Avenue
6th Avenue
Boren Avenue
Eas
tlake
Ave
nue
Eas
t
East Pine Street
Madrona D
rive
34th
Ave
nue
32nd
Ave
nue
McG
ilvra
Bou
leva
rd E
ast
Mar
tin L
uthe
r Kin
g Ju
nior
Way
19th
Ave
nue
East Thomas Street
15th
Ave
nue
Mar
tin L
uthe
r Kin
g Ju
nior
Way
Eas
t
East Aloha Street 19th
Ave
nue
Eas
t
15th
Ave
nue
Eas
t
East John Street
Belmont Avenue East
11th
Ave
nue
East Union Street
Boy
lsto
n Av
enue
Eas
t
Harvard Avenue E
ast East Denny Way
Bel
levu
e Av
enue
Mel
rose
Ave
nue
12th
Ave
nue
Eas
t
12th Avenue
Howe
ll Stre
et
Lakeview B
oulevard East
Mercer Street
John Street
Republican Street
Seneca
Street
Bor
en A
venu
e N
orth
Min
or A
venu
e N
orth
Harrison Street
Bro
adw
ay C
ourt
Thomas Street
Washington Place East
East Helen Street
28th
Ave
nue
Eas
t
East
Arthu
r Plac
e
40th
Ave
nue
East Schubert Place
37th
Ave
nue
East Florence Court
Grand Avenue
37th
Ave
nue
Eas
t
36th
Ave
nue
Eas
t
35th
Ave
nue
34th
Ave
nue
Eas
t
36th
Ave
nue
33rd
Ave
nue
31st
Ave
nue
32nd
Ave
nue
31st
Ave
nue
Eas
t
30th
Ave
nue
Eas
t
39th Avenue East
Dew
ey P
lace
Eas
t30
th A
venu
e
29th
Ave
nue
27th
Ave
nue
27th
Ave
nue
Eas
t
East Pine Street
29th
Ave
nue
Eas
t
22nd
Ave
nue
26th
Ave
nue
26th Avenue East
25th
Ave
nue
Eas
t
24th
Ave
nue
Eas
t
22nd
Ave
nue
Eas
t
East Glen Street
18th
Ave
nue
Eas
t
17th
Ave
nue
Eas
t
20th
Ave
nue
Eas
t
16th
Ave
nue
Eas
t
East Spring Street 19th
Ave
nue
17th
Ave
nue
16th
Ave
nue
20th
Ave
nue
21st
Ave
nue
18th
Ave
nue
Fede
ral A
venu
e E
ast
East John Court
East Valley Street
Mal
den
Aven
ue E
ast
14th
Ave
nue
Eas
t
East Ward Street
13th
Ave
nue
Eas
t
11th
Ave
nue
Eas
t
11th Avenue
13th
Ave
nue
14th
Ave
nue
Nagle P
lace
Bro
adw
ay E
ast
East Aloha Street
East Harrison Street
10th
Ave
nue
Eas
t
East Mercer Street
East Thomas Street
East Prospect Street
Boylston Avenue H
arva
rd A
venu
e
Spring
Street
East Union Street
East Olive Street
East Howell Street
Har
vard
Ave
nue
Eas
t
East Denny Way
East Republican Street
Bellevu
e Court
East
Valley Street
Roy Street
East John Street
East Roy Street
East Loretta Place
Mel
rose
Ave
nue
Eas
t
Sum
mit Avenue
9th Avenue
Yale Avenue North
Terry Avenue
Belm
ont Avenue
21st
Ave
nue
Eas
t
221
51
5736
34
74
33*41
70
50
36
55*
3755
41
47
20
32
60
90
47
44
60
42*
65
43
44
89135
137100
170
100100
140
136
130
70 75
44
86
20
96 41105*
2016 2017 2018 2019 FUTURE
Numbers within circles on map below indicates number of units in each development.
EAST SLO
PE OF CAPITOL HILL
64 52
503426
75*157160
95
38
144 4192
The emerging East Slope of Capitol Hill continues to take shape. Developers completed exceptional new apartment projects east of 18th Avenue as early as 2012 and now specific micro-markets are forming along E. Madison and the retail corridor of 23rd & Union. In 2016, several hundred units are set for delivery on Capitol Hills East Slope with additional projects slated for 2017 2019.
OUR MARKET INSIGHT
22
FUTU
RE L
INK
LIGH
T RA
IL
2016 Seattle Apartment Market Study
COLLIERS INTERNATIONAL SEATTLE28
2015 First Hill/Yesler Terrace Sales
Property Name Address Year Built Units NRSFAvg Unit
Size Price Sale Date $/Unit $/NRSFCap Rate
BuyerSeller
1 One Thousand 8th Avenue 1000 8th Avenue 1950 351 211,872 602 $99,500,000 6/30/2015 $283,476 $470 4.5%Sequoia EquitiesAcacia Capital
2 Barclay Broadway 412 Broadway Avenue 2012 118 81,494 639 $42,000,000 4/7/2015 $338,710 $515 4.2%Calfox IncGerding Edlen
Average 1981 235 146,683 621 $70,750,000 $311,093 $492 4.4%
Seattle
2nd Avenue Extension South
4th Avenue
South Jackson Street
2nd Avenue
Ala
skan
Way
Sou
th
4th
Aven
ue S
outh
WA 304
WA 305
Alaskan Way
East Union Street
Boren Avenue South
East Cherry Street
East Yesler Way
23rd
Ave
nue
12th
Ave
nue
Sou
th
Mar
tin L
uthe
r Kin
g Ju
nior
Way
Bro
adw
ay
23rd Avenue South
East M
adison
Street
Westlake Avenue
Olive W
ay
8th Avenue
Stew
art S
treet
Pine S
treet
East Pike Street
Madis
on Str
eet
Alaskan Way
Pike S
treet
7th Avenue6th Avenue
Yesler Way
James
Street
5th Avenue3rd Avenue
Boren Avenue
1st Avenue
East Pine Street
34th
Ave
nue
32nd Avenue
East Cherry Street
19th
Ave
nue
15th Avenue
East Yesler Way
31st
Ave
nue
Sou
th
East Jefferson Street
11th Avenue
East Union Street
Spruce
Street
Bel
levu
e Av
enue
Mel
rose
Ave
nue
7th AvenueJeff
erson
Street
8th Avenue
12th
Ave
nue
14th
Ave
nue
14th
Ave
nue
Sou
th
6th
Aven
ue S
outh
Virgin
ia St
reet
Terry Avenue
Leno
ra S
treetBe
ll Stre
et
Stew
art S
treet
9th Avenue
Batte
ry St
reet
Elliott Avenue
Blan
char
d Stre
et
Western Avenue
South King Street
Madiso
n Stree
t
South Jackson Street
Marion
Street
Colum
bia Str
eet
Univer
sity Str
eet
Spring
Street
Seneca
Street
Bro
adw
ay C
ourt
9th Avenue
Pike Place
Pine S
treet
34th
Ave
nue
32nd
Ave
nue
31st
Ave
nue
Sou
th
30th
Ave
nue
29th
Ave
nue
28th
Ave
nue
East Jefferson Street
Temple P
lace
East Pine Street
25th
Ave
nue
24th
Ave
nue
26th
Ave
nue
Sou
th
22nd
Ave
nue
Sou
th22
nd A
venu
e
25th
Ave
nue
Sou
th
26th
Ave
nue
24th
Ave
nue
Sou
th
27th Avenue27th Avenue S
outh
East Pike Street
19th Avenue
17th
Ave
nue
South Jackson Place
20th
Ave
nue
21st
Ave
nue
East Columbia Street
15th
Ave
nue
Sou
th
11th Avenue
10th
Ave
nue
10th
Ave
nue
Sou
th
Nagle P
laceEast James Street
East Union Street
East Olive Street
Colum
bia Str
eetMarion
Street
9th Avenue South
East Spruce Street
East Fir Street
8th Avenue South7t
h Av
enue
Sou
th
South Main Street
East Alder Street
East Terrace Street
Sum
mit
Aven
ue
Hub
bell
Plac
e
Terry Avenue
Belm
ont Avenue
May
nard
Ave
nue
Sou
th
South Washington Street
8th Avenue
South Weller Street
1
FIRS
T H
ILL/
YE
SLER
TER
RACE
2
2015
2014
$311,093AVG PRICE PER UNIT
$309,594AVG PRICE PER UNIT
$492AVG PRICE PER SF
$408AVG PRICE PER SF
4.4%CAP RATE
3.7%CAP RATE
0.5% 20.7% 70 BP
FUTURE
LINK LI
GHT RA
IL
2016 Seattle Apartment Market Study
WWW.DYLANSIMON.COM 29
First Hill/Yesler Terrace Development Pipeline
Deliveries2016 2017 2018 2019 FUTURE
275 406 1,953 0 1,106
FIRST HILL/
YESLER TERRACE
*Indicates Micro. Indicates Possible Condo.
Seattle
2nd Avenue Extension South
4th Avenue
South Jackson Street
2nd Avenue
Ala
skan
Way
Sou
th
4th
Aven
ue S
outh
WA 304
WA 305
Alaskan Way
East Union Street
Boren Avenue South
East Cherry Street
East Yesler Way
23rd
Ave
nue
12th
Ave
nue
Sou
th
Mar
tin L
uthe
r Kin
g Ju
nior
Way
Bro
adw
ay
23rd Avenue South
East M
adison
Street
Westlake Avenue
Olive W
ay
8th Avenue
Stew
art S
treet
Pine S
treet
East Pike Street
Madis
on Str
eet
Alaskan Way
Pike S
treet
7th Avenue6th Avenue
Yesler Way
James
Street
5th Avenue3rd Avenue
Boren Avenue
1st Avenue
East Pine Street
34th
Ave
nue
32nd Avenue
East Cherry Street
19th
Ave
nue
15th Avenue
East Yesler Way
31st
Ave
nue
Sou
th
East Jefferson Street
11th Avenue
East Union Street
Spruce
Street
Bel
levu
e Av
enue
Mel
rose
Ave
nue
7th Avenue
Jeffers
on Stre
et
8th Avenue
12th
Ave
nue
14th
Ave
nue
14th
Ave
nue
Sou
th
6th
Aven
ue S
outh
Virgin
ia St
reet
Terry Avenue
Leno
ra S
treetBe
ll Stre
et
Stew
art S
treet
9th Avenue
Batte
ry St
reet
Elliott Avenue
Blan
char
d Stre
et
Western Avenue
South King Street
Madiso
n Stree
t
South Jackson Street
Marion
Street
Colum
bia Str
eet
Univer
sity Str
eet
Spring
Street
Seneca
Street
Bro
adw
ay C
ourt
9th Avenue
Pike Place
Pine S
treet
34th
Ave
nue
32nd
Ave
nue
31st
Ave
nue
Sou
th
30th
Ave
nue
29th
Ave
nue
28th
Ave
nue
East Jefferson Street
Temple P
lace
East Pine Street
25th
Ave
nue
24th
Ave
nue
26th
Ave
nue
Sou
th
22nd
Ave
nue
Sou
th22
nd A
venu
e
25th
Ave
nue
Sou
th
26th
Ave
nue
24th
Ave
nue
Sou
th
27th Avenue27th Avenue S
outh
East Pike Street
19th Avenue
17th
Ave
nue
South Jackson Place
20th
Ave
nue
21st
Ave
nue
East Columbia Street
15th
Ave
nue
Sou
th
11th Avenue
10th
Ave
nue
10th
Ave
nue
Sou
th
Nagle P
lace
East James Street
East Union Street
East Olive Street
Colum
bia Str
eetMarion
Street
9th Avenue South
East Spruce Street
East Fir Street
8th Avenue South7t
h Av
enue
Sou
th
South Main Street
East Alder Street
East Terrace Street
Sum
mit
Aven
ue
Hub
bell
Plac
e
Terry Avenue
Belm
ont Avenue
May
nard
Ave
nue
Sou
th
South Washington Street
8th Avenue
South Weller Street
215 265
207
200
287
275
6090*
100
400
338329
74
As one of only five submarkets with zoning that permits high-rise development, developers are planning a significant number of high-rise apartment buildings across First Hill. Long-awaited Yesler Terrace will begin to take shape in 2016, anchoring the southern end of First Hill and further connecting the Central District with Downtown and South Downtown.
OUR MARKET INSIGHT
200
200
200
2016 2017 2018 2019 FUTURE
Numbers within circles on map below indicates number of units in each development.
106194
FIRST HILL STREETCAR
In 2016, the First Hill Streetcar - with its Broadway Extension - will begin service. This light-rail line will connect Seattles Waterfront with the Pioneer Square and Yesler Terrace neighborhoods continuing to the Light Rail Station in Capitol Hill.
FUTURE LI
NK LIGHT
RAILTRANSIT UPDATE
2016 Seattle Apartment Market Study
COLLIERS INTERNATIONAL SEATTLE30
2015 Belltown Sales
Property Name Address Year Built Units NRSFAvg Unit
Size Price Sale Date $/Unit $/NRSFCap Rate
BuyerSeller
1 Verve 2720 4th Avenue 2014 161 120,000 678 $77,857,000 10/1/2015 $483,584 $649 4.2% Clarion PartnersHB Capital2 Dimension by Alta 225 Cedar Street 2014 298 238,400 646 $144,000,000 9/21/2015 $483,221 $604 4.2% HeitmanWood Partners3 Lenora (Marq 211) 211 Lenora Street 1999 107 76,125 640 $40,385,067 6/15/2015 $377,431 $531 ** CWS Capital PartnersUnico Partners4 Viktoria 1915 2nd Avenue 2014 249 180,993 701 $130,000,000 5/14/2015 $522,088 $718 4.0% TruAmerica MultifamilyGoodman Real Estate
Average 2010 204 153,880 666 $98,060,517 $466,581 $625 4.1%
**Sold Vacant
Seattle
4th Avenue
Denny Way
Elliott Avenue
2nd Avenue
Elliott Avenue West
Broa
d Stre
et
Alaskan Way
Bro
adw
ay E
ast
East Union Street
East Ja
mes W
ay East Cherry StreetBro
adw
ay
East M
adison
Street
9th
Aven
ue N
orth
Wes
tlake
Ave
nue
Nor
th
Fairv
iew
Ave
nue
Nor
th
East Denny Way
Westlake Avenue
Olive W
ay8th Avenue
Dex
ter A
venu
e
Stew
art S
treet
East O
live Wa
y
Elliott Avenue
Pine S
treet East Pike Street
Madis
on Str
eet
Pike S
treet
7th Avenue6th Avenue
James
Street
5th Avenue3rd Avenue
Boren Avenue
1st Avenue
East Pine Street
Western Avenue
Que
en A
nne
Aven
ue N
orth
1st A
venu
e N
orth
East Jefferson Street
East John Street
Boy
lsto
n Av
enue
Eas
t
East Denny Way
Bel
levu
e Av
enue
Mel
rose
Ave
nue
8th AvenueMinor Avenue
12th
Ave
nue
Howe
ll Stre
et
Virgin
ia St
reet
Terry Avenue
Leno
ra S
treet
Bell S
treet
Stew
art S
treet
Aur
ora
Aven
ue
9th Avenue
Taylor Avenue
Wall
Stre
et
Ceda
r Stre
et
Batte
ry St
reet
Vine S
treet
2nd
Aven
ue N
orth
Elliott Avenue
Blan
char
d Stre
et
Clay
Stre
et
Western Avenue
Madiso
n Stree
tMa
rion Str
eet
Colum
bia Str
eet
Univer
sity Str
eet
Spring
StreetSe
neca S
treet
Terr
y Av
enue
Nor
th
Pon
tius
Aven
ue N
orth
War
ren
Aven
ue N
orth
6th
Aven
ue N
orth
Vine S
treet
Pine S
treet
7th Avenue
East Spring Street
14th Avenue East
13th Avenue East
East James Court
East Barclay Court
Nagle P
lace
East Harrison Street
East Thomas Street
Boylston Avenue
Harvard Avenue
Spring
Street
East Union Street
East Olive Street
Colum
bia Str
eet
East Howell Street
East Denny Way
Marion
Street
East Spruce StreetAlde
r Stree
t East Alder Street
East John Street
Sum
mit Avenue
9th Avenue
Terry Avenue
Belm
ont Avenue
8th Avenue
Belm
ont Avenue East
8th
Aven
ue N
orth
Batte
ry St
reet
Bay S
treet
Bell S
treet
SeattleCenterBE
LLTO
WN
2015
2014
$466,581AVG PRICE PER UNIT
$562,661AVG PRICE PER UNIT
$625AVG PRICE PER SF
$643AVG PRICE PER SF
4.1%CAP RATE
4.4%CAP RATE
-17.1% -2.7% 30 BP
2
1
3
4
The story in Belltown is that of high-rise development and concomitant investment sales. Three of the four sales recorded in 2015 were of high-rise buildings, with a pricing stratosphere to match. The decline in average pricing as compared to 2014 is the result of the sale of two ultra-luxe high-rises in 2014 The Martin and Joseph Arnold Lofts. Given the quality of new development in Belltown, expect pricing to hold if not escalate.
OUR MARKET INSIGHT
2016 Seattle Apartment Market Study
WWW.DYLANSIMON.COM 31
Belltown Development Pipeline Deliveries2016 2017 2018 2019 FUTURE
552 464 1,542 0 2,089
BELLTOWN
*Indicates Micro. Indicates Possible Condo.
Seattle
4th Avenue
Denny Way
Elliott Avenue
2nd Avenue
Elliott Avenue West
Broa
d Stre
et
Alaskan Way
Bro
adw
ay E
ast
East Union Street
East Ja
mes W
ay East Cherry StreetBro
adw
ay
East M
adison
Street
9th
Aven
ue N
orth
Wes
tlake
Ave
nue
Nor
th
Fairv
iew
Ave
nue
Nor
th
East Denny Way
Westlake Avenue
Olive W
ay8th Avenue
Dex
ter A
venu
e
Stew
art S
treet
East O
live Wa
y
Elliott Avenue
Pine S
treet East Pike Street
Madis
on Str
eet
Pike S
treet
7th Avenue6th Avenue
James
Street
5th Avenue3rd Avenue
Boren Avenue
1st Avenue
East Pine Street
Western Avenue
Que
en A
nne
Aven
ue N
orth
1st A
venu
e N
orth
East Jefferson Street
East John Street
Boy
lsto
n Av
enue
Eas
t
East Denny Way
Bel
levu
e Av
enue
Mel
rose
Ave
nue
8th AvenueMinor Avenue
12th
Ave
nue
Howe
ll Stre
et
Virgin
ia St
reet
Terry Avenue
Leno
ra S
treet
Bell S
treet
Stew
art S
treet
Aur
ora
Aven
ue
9th Avenue
Taylor Avenue
Wall
Stre
et
Ceda
r Stre
et
Batte
ry St
reet
Vine S
treet
2nd
Aven
ue N
orth
Elliott Avenue
Blan
char
d Stre
et
Clay
Stre
et
Western Avenue
Madiso
n Stree
tMa
rion Str
eet
Colum
bia Str
eet
Univer
sity Str
eet
Spring
StreetSe
neca S
treet
Terr
y Av
enue
Nor
th
Pon
tius
Aven
ue N
orth
War
ren
Aven
ue N
orth
6th
Aven
ue N
orth
Vine S
treet
Pine S
treet
7th Avenue
East Spring Street
14th Avenue East
13th Avenue East
East James Court
East Barclay Court
Nagle P
lace
East Harrison Street
East Thomas Street
Boylston Avenue
Harvard Avenue
Spring
Street
East Union Street
East Olive Street
Colum
bia Str
eet
East Howell Street
East Denny Way
Marion
Street
East Spruce StreetAlde
r Stree
t East Alder Street
East John Street
Sum
mit Avenue
9th Avenue
Terry Avenue
Belm
ont Avenue
8th Avenue
Belm
ont Avenue East
8th
Aven
ue N
orth
Batte
ry St
reet
Bay S
treet
Bell S
treet
SeattleCenter
20063
150
100
152
110
100
150196
400
433
372
314
384
310 300
394
339
83*
97
OUR MARKET INSIGHTBelltowns zoning and waterfront location provides an ideal opportunity for high-rise development. There are currently nine residential high-rise buildings each in excess of 300 units under development or proposal in Belltown.
2016 2017 2018 2019 FUTURE
Numbers within circles on map below indicates number of units in each development.
2016 Seattle Apartment Market Study
COLLIERS INTERNATIONAL SEATTLE32
2015 Queen Anne Sales
Property Name Address Year Built Units NRSFAvg Unit
Size Price Sale Date $/Unit $/NRSFCap Rate
BuyerSeller
1 Aperture on Fifth 206 5th Avenue N 2014 106 67,594 654 $39,961,000 7/15/2015 $376,991 $591 4.1% Pillar CommunitiesL&P PartnersAverage 2014 106 67,594 654 $39,961,000 $376,991 $591 4.1%
Bal
lard
Brid
ge15
th A
venu
e W
est
SR-9
9 SB
Aur
ora
Aven
ue N
orth
25th
Ave
nue
Nor
thea
st
Northeast 45th Street
Mon
tlake
Bou
leva
rd N
orth
east
West Nickerson Street Nickerson Street
15th
Ave
nue
Wes
t
Denny Way
Elliott Avenue
2nd Avenue
Elliott Avenue West
Mercer Street
Northeast 55th
Street
Roo
seve
lt W
ay N
orth
east
15th
Ave
nue
Nor
thea
stEas
t Gre
en La
ke W
ay N
orth
5th Avenue Northeast
7th
Aven
ue N
orth
eastNorth 46th Street
Leary Avenue Northwest
Northwest 54th Stre
et Northwest Market Street
Leary Way Northwest
24th
Ave
nue
Eas
t
Har
vard
Ave
nue
Eas
tB
road
way
Eas
t
23rd
Ave
nue
East
Madis
on S
treet
Westlake Avenue N
orth
Roy Street
East Denny Way
Eas
tlake
Ave
nue
Eas
t
Magnolia Bridge
Gilm
an Avenue West
Que
en A
nne
Aven
ue N
orth
Sto
ne W
ay N
orth
Northeast 65th Street
Penny Drive
20th Avenue Northeast Northeast 41st Street
East Lynn Street
19th
Ave
nue
East Aloha Street
North
Pac
ific S
treet
North 56th Street
Bro
okly
n Av
enue
Nor
thea
st
East Denny Way
12th Avenue
North 65th Street
Wal
lingf
ord
Aven
ue N
orth
Valley Street
Boston Street
3rd
Aven
ue W
est
North 34th Street
Northwest 65th Street
Texa
s W
ay
31st Avenue West
7th
Aven
ue W
est
Illinios Avenue
11th
Ave
nue
Wes
t10
th A
venu
e W
est
Clis
e P
lace
Wes
t32
nd A
venu
e W
est
28th
Ave
nue
Wes
t
34th
Ave
nue
Wes
tWest Emerson Street
Magnolia Boulevard West
Harrison Street
5th
Aven
ue W
est
60th
Ave
nue
Nor
thea
st
41st
Ave
nue
Eas
t
28th
Ave
nue
Nor
thea
st
33rd
Ave
nue
Nor
thea
st
West approach bridge north (WABN)
22nd
Ave
nue
Nor
thea
st
39th
Ave
nue
Eas
t
26th Avenue
26th
Ave
nue
Eas
t
Northeast 50th Street
17th
Ave
nue
Nor
thea
st
2nd
Aven
ue N
orth
east
20th
Ave
nue
Eas
t
16th
Ave
nue
22nd
Ave
nue
Eas
t
14th
Ave
nue
10th
Ave
nue
Eas
t
Min
or A
venu
e E
ast
Fran
klin
Ave
nue
East
North 52nd Street
North 48th Street
Northwest 52nd Street
Lee Street
Blaine Street
Comstock Street
Pro
sch
Aven
ue W
est
Northwest 68th Street
Wha
lley
Pla
ce W
est
25th
Ave
nue
Wes
t
West Halladay Street
West Boston StreetWest Newton Street
West Cramer Street
40th Avenue West
45th
Ave
nue
Wes
t
28th
Ave
nue
Wes
t
30th
Ave
nue
Wes
t
1
QUEE
N AN
NE
2015
2014
$376,991AVG PRICE PER UNIT
$354,942AVG PRICE PER UNIT
$591AVG PRICE PER SF
$452AVG PRICE PER SF
4.1%CAP RATE
4.5%CAP RATE
6.2% 30.8% 40 BP
The lack of sales in Queen Anne is more a measure of inventory than investor demand. Traditionally a hard market to enter, few sales of 50 or more unit buildings occur each year. Recent development in Queen Anne has occurred on a smaller scale and with longer-term owners, including several institutions/REITs. As is demonstrated by sales that occur, pricing is on par with Urban Kings most expensive neighborhoods.
OUR MARKET INSIGHT
2016 Seattle Apartment Market Study
WWW.DYLANSIMON.COM 33
Queen Anne Development Pipeline Deliveries2016 2017 2018 2019 FUTURE
259 405 468 0 692
QUEEN ANNE
*Indicates Micro. Indicates Possible Condo.
Bal
lard
Brid
ge15
th A
venu
e W
est
SR-9
9 SB
Aur
ora
Aven
ue N
orth
Mon
tlake
Bou
leva
rd N
orth
east
West Nickerson Street
Nickerson Street
15th
Ave
nue
Wes
t
Denny Way
Elliott Avenue West
Mercer Street
Roo
seve
lt W
ay N
orth
east
15th
Ave
nue
Nor
thea
st
Green
Lake W
ay No
rth
5th
Aven
ue N
orth
east
7th
Aven
ue N
orth
east
North 46th StreetNortheast 45th Street
North 39th Street
Northwest Leary Way
West Emerson Place
Leary Way Northwest
Unive
rsity
Brid
ge
24th
Ave
nue
Eas
t
10th
Ave
nue
Eas
t
23rd
Ave
nue
Eas
t
Bro
adw
ay E
ast
9th
Aven
ue N
orth
Queen An
ne Drive W
estlake Avenue North
Fairv
iew Av
enue
Nor
th
Roy Street
East Denny Way
Eas
tlake
Ave
nue
Eas
t
Magnolia Bridge
Gilm
an Avenue West
Que
en A
nne
Aven
ue N
orth
1st A
venu
e N
orth
Sto
ne W
ay N
orth
Mem
oria
l Way
Nor
thea
st
Wal
la W
alla
Roa
d N
orth
east
East Lynn Street
East Aloha Street
19th
Ave
nue
Eas
t
East Miller Street
North
Pac
ific S
treet
Bro
okly
n Av
enue
Nor
thea
st
North 43rd Street
North 40th Street
5th
Aven
ue N
orth
North 35th Street
Boston Street
West Roy Street
3rd Avenue West
2nd
Aven
ue N
orth
John Street
West Commodore Way
Texa
s W
ay
9th
Aven
ue W
est
8th
Aven
ue W
est
22nd
Ave
nue
Wes
t
31st Avenue West
West Barrett Street
Northwest 45th Street
West McGraw Street
Illinios Avenue
11th Avenue West
Gilm
an Drive West
Olympic W
ay West
West Howe Street
West Galer Street
West Hayes Street
28th
Ave
nue
Wes
t
6th
Aven
ue W
est
Wes
t Vie
wm
ont W
ay W
est
West Emerson Street
Magnolia Boulevard West
23rd
Ave
nue
Wes
t
4th
Aven
ue N
orth
east
East Crockett Street
East Gwinn Place
East Hamlin Street
East Denny Way
Boy
lsto
n Av
enue
Eas
t
East Lynn Street
East Louisa Street
East Garfield Street
Car
r Pla
ce N
orth
Bellevue Avenue E
ast
North 42nd Street
North 51st StreetNorthwest 52nd Street
Northwest 50th Street
8th
Aven
ue N
orth
Hayes Street
Galer Street
Armour Street
Howe Street
Prospect Street
Aloha Street
4th
Aven
ue W
est
Pro
sch
Aven
ue W
est
West Prospect Street
West Lee Street
North 41st Street
West Halladay Street
26th
Ave
nue
Wes
t
West Boston Street
24th
Ave
nue
Wes
t
Ore
gon
Aven
ue
West Roberts W
ay
39th
Ave
nue
Wes
t44th
Ave
nue
Wes
t
46th
Ave
nue
Wes
t
West Dravus Street
West Lawton Street
232
20
79
20
37
677
45
6692
97
59
100
182
150
7940
34
173
75
161
As one of the Citys most desirable neighborhoods, Queen Anne is predominantly occupied by single family homes and an inventory of old-stock apartment buildings. Development sites are highly coveted and developers are rewarded with high rental rates and stable vacancy despite the delivery of an increasing number of apartment buildings.
OUR MARKET INSIGHT
2016 2017 2018 2019 FUTURE
Numbers within circles on map below indicates number of units in each development.
FUTU
RE L
INK
LIGH
T RA
IL
2016 Seattle Apartment Market Study
COLLIERS INTERNATIONAL SEATTLE34
2015 South Lake Union Sales
Property Name Address Year Built Units NRSFAvg Unit
Size Price Sale Date $/Unit $/NRSFCap Rate
BuyerSeller
1 Summit at Lake Union 1735 Dexter Ave N 1995 150 109,585 750 $48,455,000 10/15/2015 $323,033 $442 4.8%Ezralow CompanyEquity Residential
2 Oakwood Seattle SLU 717 Dexter Avenue N 2013 100 67,400 674 $41,000,000 7/29/2015 $410,000 $608 4.0%Mesirow FinancialHolland Partners
3 Union SLU 905 Dexter Avenue N 2013 284 200,032 695 $112,300,000 6/19/2015 $395,423 $561 4.0% TIAA-CREFHolland Partners4 Alley 24 223 Yale Avenue N 2006 172 128,788 720 $58,200,000 2/20/2015 $338,372 $452 4.2% GreystarVulcan Real Estate5 Stack House 1280 Harrison Streeet 2013 278 219,972 760 $126,000,000 2/13/2015 $453,237 $573 4.0% JP Morgan Asset ManagementVulcan Real Estate6 Rollin Street Flats 120 Westlake Ave N 2009 208 237,911 1,059 $138,203,000 2/9/2015 $664,438 $581 4.7% Stockbridge Capital GroupVulcan Real Estate
Average 2008 199 155,442 776 $87,359,667 $430,750 $552 4.3%
Seattle
SR-9
9 SB
Aur
ora
Aven
ue N
orth
South Dearborn Street
15th
Ave
nue
Wes
t
4th Avenue
Edgar Martinez Drive South
Ala
skan
Way
Sou
th
Denny Way
2nd Avenue
Elliott Avenue West
WA 305
Alaskan Way
Mercer Street
24th
Ave
nue
Eas
t
10th
Ave
nue
Eas
t
23rd
Ave
nue
Eas
t
Bro
adw
ay E
ast
East Cherry Street
Mar
tin L
uthe
r Kin
g Ju
nior
Way
Bro
adw
ay
23rd
Ave
nue
Sou
th
East
Madis
on St
reet
Seattle Boulevard South
9th
Aven
ue N
orth
Fairv
iew Av
enue
Nor
th
Denny Way
Olive W
ay8th Avenue East Pike Street
Mercer Street
Madis
on Str
eet
7th Avenue
Yesler Way
James
Street
5th Avenue
1st A
venu
e S
outh
1st Avenue
Western Avenue
Magnolia Bridge
Que
en A
nne
Aven
ue N
orth
1st A
venu
e N
orth
South Jackson Street
East Lynn Street
Madrona D
rive
34th
Ave
nue
32nd
Ave
nue
Eas
t
McG
ilvra
Bou
leva
rd E
ast
19th
Ave
nue
East Yesler Way
East Aloha Street 19th
Ave
nue
Eas
t
31st
Ave
nue
Sou
th
East Jefferson Street
35th
Ave
nue
Sou
th
East Union Street
Har
vard
Ave
nue
Eas
t
12th
Ave
nue
Eas
t
Boston Street
West Olympic Place
West McGraw Street
Gilm
an Drive West
6th
Aven
ue W
est
Magnolia Boulevard West
41st
Ave
nue
Eas
t
East Helen Street
Maiden Lane East
35th
Ave
nue
Eas
t
31st
Ave
nue
36th
Ave
nue
33rd
Ave
nue
Sou
th29t
h Av
enue
Yaki
ma
Aven
ue S
outh
27th
Ave
nue
Eas
t28
th A
venu
e S
outh
29th
Ave
nue
Eas
t
25th
Ave
nue
26th
Ave
nue
Eas
t25
th A
venu
e E
ast
South Norman Street
East Crockett Street
Bel
mon
t Pla
ce E
ast
Har
vard
Ave
nue
Eas
t
East Denny Way
East Alder Street
Bellevue Avenue E
ast
21st
Ave
nue
Eas
t
South Weller Street
8th
Aven
ue N
orth
Galer Street
McGraw Street
Blaine Street
4th
Aven
ue W
est
West Lee Street
West Boston Street
SOUT
H LA
KE U
NION
2015
2014
$430,750AVG PRICE PER UNIT
$307,210AVG PRICE PER UNIT
$552AVG PRICE PER SF
$423AVG PRICE PER SF
4.3%CAP RATE
4.9%CAP RATE
40.2% 30.6% 60 BP
1
23
4
5
6
South Lake Union was one of the most active investment sales neighborhoods in 2015. Of the sales that occurred, half closed well in excess of $100M and all six sales involved only three selling entities. The desire of major financial institutions to own apartment assets in Seattles urban core is exemplified by these sales. Given a development pipeline of over 13,000 units in South Lake Union, expect a volume of transactions in the coming years.
OUR MARKET INSIGHT
2016 Seattle Apartment Market Study
WWW.DYLANSIMON.COM 35
South Lake Union Development Pipeline
Deliveries2016 2017 2018 2019 FUTURE
1,650 1,910 4,140 0 5,433 SOUTH LAKE UNION
*Indicates Micro. Indicates Possible Condo.
51
SR-9
9 N
BA
uror
a Av
enue
Nor
th
4th Avenue
Denny Way
2nd Avenue
Elliott Avenue West
Broa
d Stre
et
Alaskan Way
Western Avenue West
Mercer Street
10th
Ave
nue
Eas
t
East
Roy S