Seattle Commercial Real Estate Prospects Look Good

Some good news on the Seattle real estate front, commercial real estate that is. According to a new survey Seattle is hot for commercial real estate in ’08.

Real-estate experts expect Seattle will be the second-best commercial real-estate market in the nation in 2008, according to a recent report.

The experts ranked Seattle second only to New York City in overall prospects for commercial and multifamily investment and development. Seattle placed first in industrial, office, rental apartment and for-sale home development, and second in retail and hotel development.

“Seattle is developing into an exciting 24-hour city smack-dab on key Asian shipping routes, and its brainpower economy diversifies… ” the report says. “[Seattle's] multifamily and industrial sectors rate as the leading buy candidates in the entire survey.”
But “abysmal traffic congestion strangles commuters,” it adds.

I would think the same driving factors that create a good environment for commercial real estate would also foster a good residential real estate. The “brainpower economy” and “24 hour city” tells me there are a lot of smart people here that need services at all hours. Smart people usually make a reasonable living and everyone needs to live somewhere.

But is “multifamily investment and development” a good prospect for Seattle because housing prices are so high? And with many buildings being built, will that drive down prices or will they just meet the mushrooming demand?

My take is that all signs point to growth and growth in Seattle will mean a strong real estate market in the long run.