June 9, 2008
. . . and still they build!
I’m often amused and inspired by our city’s refusal to slow down, even in the face of reality. If I were to go on visual clues alone, I’d be hard pressed to believe the bubble has indeed burst, even if I really know better.
Prices are down, sales are down, consumer confidence is down—but still, Seattle keeps reaching up. Seems no matter where I travel in this fair city I encounter construction.
Evidence to the point: the number of cranes in this small slice of skyline glimpsed looking northwest from the Plymouth Pillars Park at Boren and Pike. Look southeast, and several more cranes rise above First Hill.
No doubt there are logical reasons why construction continues apace. Long planning processes mean current projects may well have been in development before the bust. Or maybe the demand for office space remains healthy, fueled by our burgeoning high-tech and bio-tech industries.
Whatever the real reasons, I prefer to think of it as Seattle’s indomitable spirit, smiling in the face of absurdity, reaching for more.
What does all reaching achieve? For a lucky few, a view from Seattle’s new heights:
2121 Terry Ave #1802 Seattle, WA 98121
Price: $1,295,000
737 Olive Way #3805 Seattle, WA 98101
Price: $1,330,000
820 Blanchard St #1702 Seattle, WA 98121
Price: $1,485,000
Michael P Lindekugel said:
Some condo projects under construction have stalled for lack of financing. Some condo projects approved but not started have folded from lack of financing. Some in the permitting process have dried up. Some condo conversions are reverting back to apartments. The return on capital or discount rate as a long term rental property is higher than for resale as condos. We are continuing to see quite a bit of institutional multifamily investment.
Some of the construction is new apartments to fill the void from the loss of 5000 rental units to condo conversions since 2003. There is not enough apartment construction to meet demand. Expect high rents and low vacancy to continue through the end of 2009.
June 11, 2008 6:14 AM
Marie said:
The rental rates have really shot up over the past couple years, it would be great to reach an equilibrium. I was renting a 350 square foot loft on Cap Hil for $1200 per month! It was cute and had a view of mount rainier but the parking sucked and I’m so glad to be outta there!
June 12, 2008 12:00 PM