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APARTMENT
2021
PUGET SOUND MARKET
DEVELOPMENT
PIPELINE REPORT
DY L ANSIMON .COM
03
TABLE OF KING COUNTY
Urban King Development Overview.....................................................16
CONTENTS Suburban King Development Overview...............................................32
04
SNOHOMISH COUNTY
Development Overview..........................................................................42
05
01 PIERCE COUNTY
INTRODUCTION Development Overview..........................................................................50
Our Development Land Sales Highlights............................................... 4
06
Meet Our Team.......................................................................................... 5
Track Record............................................................................................... 5
KITSAP COUNTY
Development Overview..........................................................................58
02
DEVELOPMENT OVERVIEW
Puget Sound Apartment Development Overview................................. 8 07
Apartment Pipeline Snapshot................................................................10 DATA SOURCES & DEFINITIONS ..............................................................64
INTRODUCTION MAY 2021 Entering a new decade in 2020 soon felt like the beginning an entirely brand-new world. Nearly every area of focus for the apartment development community – urbanism, small spaces, shared amenities, co-living/co-working, transit – abruptly shifted. Where do we go from here? In 2021, as we begin to get our bearings, we stare down an apartment development pipeline larger than the Seattle/Puget Sound region ever experienced. The development cycle spanning 2010 – 2020 changed the face of the region – as well as expectations for every market participant. We expected reasonably consistent demand drivers, acceptable return thresholds, and linear increases in project timelines and construction costs. Each of these factors changed markedly over the last 12 months. In addition to myriad challenges faced in our region, apartment developers must analyze how best to proceed with the development of nearly 130,000 apartment units in the current pipeline. Many projects are viable, yet others were planned, designed, and entitled under a set of assumptions that may no longer prove valid. Understanding the apartment development pipeline – including existing inventory of apartment units – remains crucial. Our Team stands at the ready through this market shift to help you achieve your apartment development and investment goals through our valuation, advisory, and brokerage services. Please utilize this research report, and our expertise, in these changing and challenging times to make the best possible investment decisions. Let Us Turn Our Expertise into Your Profit! DYLAN SIMON JERRID ANDERSON Executive Vice President Executive Vice President
MULTIFAMILY INVESTMENT
SALES SPECIALISTS
Our goal is to help you maximize OUR DEVELOPMENT LAND
your multifamily investments, SALE HIGHLIGHTS
whether that means selling your
apartment building faster and for
more money, or providing advisory
services for assets you plan to hold
or want to buy. BELRED TOD 1405 DEXTER AVE N
Bellevue Westlake
Pricing Guidance $21M+ Pricing Guidance $12,000,000
And while anyone can promise you Status Under Contract Status Under Contract
Unit Count 249 units Unit Count 155 units
results, we deliver on our promises
with a data-driven understanding
of the market, an extensive buyer
reach, and exceptional marketing
that cuts through the noise. 24TH & UNION BEACON STATION
Central District Beacon Hill
Pricing Guidance $4,500,000 Pricing Guidance $4,000,000
Status Available Status Sold
Unit Count 107 units Unit Count 66 units
4 SIMON | ANDERSON TEAM 2021 APARTMENT MARKET STUDY
INTRODUCTION
MEET THE TEAM
Dylan Simon Jerrid Anderson Matt Laird
Executive Vice President Executive Vice President Senior Associate
Dylan is a market-leading broker throughout Seattle Jerrid focuses on urban apartment and development Matt is an apartment broker specializing in urban and
and the Puget Sound region, specializing in the sale land sales, and is the region’s micro-apartment expert. suburban apartment sales, development land sales,
of apartment buildings and development land, with His entrepreneurial mindset and passion for marketing and off-market acquisitions. His attention to detail and
expertise in sales strategies, market knowledge, and lead the innovation his clients have come to expect. excellent client service ensures smooth transactions
industry trends. from marketing through closing.
Brandon Lawler Winslow Lee Greyson Elmes
Associate Vice President Associate Associate
Brandon is an apartment broker specializing in the sale Winslow is an apartment broker specializing in sales Greyson is an apartment broker specializing in the
of apartment buildings and off-market acquisitions, of apartment buildings and development land across marketing and sale of 3-15 unit apartment buildings
with an expertise in the South Puget Sound market. the Puget Sound, with expertise in the Snohomish in Urban King County.
County market.
Max Frame Jack Counihan Cassie Pieters
Associate Associate | Financial Analyst Executive Assistant
Max is an apartment broker specializing in the sale Jack specializes in market research, apartment Cassie provides balance and support through
of King County development land and Eastern, valuations, and sales tracking in the Puget Sound administrative contributions. Her commitment to
Washington apartment buildings. market. the betterment of the team results in major goal
achievement and long-term success.
TRACK $1.25B 9,890 $179M 1.38M SF
RECORD TOTAL VALUE SOLD &
UNDER CONTRACT
TOTAL UNITS SOLD &
UNDER CONTRACT
ACTIVE LISTINGS & LISTINGS
COMING TO MARKET
DEVELOPMENT LAND SOLD
& UNDER CONTRACT
2021 APARTMENT MARKET STUDY SIMON | ANDERSON TEAM 5
02
DEVELOPMENT
OVERVIEW
PUGET SOUND APARTMENT DEVELOPMENT OVERVIEW
APARTMENT PIPELINE SNAPSHOT
DEVELOPMENT
OVERVIEW 5%
EXISTING
INVENTORY
1%
12%
39,863
PUGET SOUND APARTMENT UNITS
DEVELOPMENT OVERVIEW 14%
10% 14% EXISTING
6% INVENTORY
SNOHOMISH
105,953
EXISTING
For this study, we traced apartment development deliveries INVENTORY
back 10 years and analyzed three distinct phases of the current
8,421 19% 47%
UNITS
development pipeline, as outlined below. Our research and
UNITS
data cover the quad-county region (King, Snohomish, Pierce,
7%
and Kitsap counties), encompassing more than 6,400 square 5%
miles, 130,000+ planned apartment units, and nearly 1,000 URBAN
EXISTING
KING
individual apartment developments. KITSAP INVENTORY
22%
99,456
UNITS
PIPELINE DEFINITIONS
UNDER CONSTRUCTION Developments labeled “Under
Construction” have broken ground. Anticipated delivery is within
the next 36 months for Type I projects or the next 24 months for SUBURBAN
KING
Type III and Type V projects.
3% 2%
PLAN APPROVED These units have entitlements from their 9%
respective cities and could break ground at any time. Given
EXISTING
current market dynamics, it is important to note projects that INVENTORY
might be on hold. Concerns over the economy, rising construction
costs, and tighter lending restrictions have led some developers 53,749
UNITS
to rethink permitted projects. Some permitted sites will trade
hands and construction will commence, while many others will Units under construction as a
percentage of existing inventory
be held by developers until a later date.
Units approved as a percentage
IN REVIEW Projects “In Review” are currently pending city PIERCE of existing inventory
approvals. In Seattle, the entitlement process can take over Units in review as a percentage
of existing inventory
two years, so in many cases, projects in this category are three
or more years away from delivery. 10+ UNIT BUILDINGS
8 SIMON | ANDERSON TEAM 2021 APARTMENT MARKET STUDY
DEVELOPMENT OVERVIEW
DEVELOPMENT DELIVERIES & PIPELINE BY YEAR / STATUS
90,000
90000
80,000
80000
70,000
70000
60,000
60000
50,000
50000
40,000
40000
30,000
30000
20,000
20000
10,000
10000
Total Units
0 Delivered +
0 '2010' '2011' '2012' '2013' '2014' '2015' '2016' '2017' '2018' '2019' '2020' 'Q1 2021'Construction
2010 2011 2012 2013 2014 2015 2016 2017 2018 2019 2020 Q1 2021 Construction Approved
Approved InInReview
Review Pipeline
Urban King 1,035 145 1,636 2,644 5,927 5,517 4,890 4,853 5,174 4,423 2,121 624 15,041 14,462 50,295 118,287
Suburban King 1,751 220 463 738 1,028 2,033 3,409 1,242 2,442 2,816 1,470 572 6,559 5,072 21,653 49,373
Snohomish - 108 352 619 924 1,239 70 441 48 982 556 600 1,997 460 4,630 13,026
Pierce 275 305 788 796 619 818 587 1,058 313 1,228 545 234 1,803 825 4,750 14,944
Kitsap - - - - 251 12 71 245 166 114 238 - 818 521 1,562 3,998
Total Deliveries 3,061 778 3,239 4,797 8,749 9,619 9,027 7,839 8,143 9,563 4,930 2,030 26,218 21,340 82,890
Total Inventory 238,728 239,506 242,745 247,542 256,291 265,910 274,937 282,776 290,919 300,482 305,412 307,442
Total Pipeline 130,448
% Increase 0.3% 1.4% 2.0% 3.5% 3.8% 3.4% 2.9% 2.9% 3.3% 1.6% 0.7%
*KING, SNOHOMISH, PIERCE & KITSAP COUNTIES — 10+ UNIT BUILDINGS
HISTORIC DATA REPORTED IN 2021 DIFFERS FROM PREVIOUS YEARS DUE TO UPDATES AND RECALIBRATION FROM OUR DATA SOURCES. IN SOME CASES THESE UPDATES ARE MATERIAL,
AND IN OTHERS THERE ARE ONLY SLIGHT DEVIATIONS. THIS REPORT PROVIDES THE MOST ACCURATE DATA WE ARE ABLE TO SOURCE. MOST CHANGES ARE DUE TO CHANGES FROM
MARKET RATE DEVELOPMENT TO AFFORDABLE/SUBSIDIZED/SENIOR HOUSING PROJECTS (NOT INCLUDED IN OUR RESEARCH) AND CHANGES IN LOCATION BOUNDARIES.
2021 APARTMENT MARKET STUDY SIMON | ANDERSON TEAM 9
DEVELOPMENT OVERVIEW
APARTMENT DEVELOPMENT
PIPELINE SNAPSHOT
A SLOWDOWN – SORT OF … A PATH FORWARD
In last year’s Apartment Development Pipeline Report, we forecast a slowdown. Less Expect 2021 to serve as a year of regrouping – centering, if you will – and
apartment units delivered and less developments receiving permitting. In 2021, we are focusing on which developments make the most sense. Is no surprise
experiencing some of the effects of that slowdown, with less units delivered year-over-year that apartment developers are focusing more on Eastside and suburban
than in previous years, and less construction starts. Where the market has not slowed is markets, and we expect this trend to continue for the long-term.
in delivering permitted development sites.
In the short term, we expect a slowdown in the construction and delivery
Part of what the market is experiencing is a bottleneck at the stage of groundbreakings. of urban-located, small unit-sized developments. Expect continued
Apartment developers are much busier entitling development sites than they are in starting vibrancy in urban markets with high entrance barriers– Queen Anne,
to construct them. And given demand drivers, constructions costs, and availability of Green Lake – and slowdowns in markets hardest hit in the last year –
capital – this all makes sense. South Lake Union, West Seattle, University District.
Development History & Pipeline by Region
Inventory as of Inventory Growth Under Plan In Review
Year-End 2000 2010 – 2020 Construction Approved
Urban King 66,964 Units 38,365 Units 57% 15,041 Units 14% 14,462 Units 12% 50,295 Units 37%
Suburban King 81,272 Units 17,612 Units 22% 6,559 Units 7% 5,072 Units 4.8% 21,653 Units 20%
Snohomish 33,924 Units 5,339 Units 16% 1,997 Units 5% 460 Units 1.1% 4,630 Units 11%
Pierce 46,183 Units 7,332 Units 16% 1,803 Units 3% 825 Units 1.5% 4,750 Units 8%
Kitsap 7,324 Units 1,097 Units 15% 818 Units 10% 521 Units 5.6% 1,562 Units 16%
10 SIMON | ANDERSON TEAM 2021 APARTMENT MARKET STUDY2021 APARTMENT MARKET STUDY SIMON | ANDERSON TEAM 11
03 KING COUNTY URBAN KING DEVELOPMENT OVERVIEW SUBURBAN KING DEVELOPMENT OVERVIEW
KING
COUNTY
A QUESTION OF URBANISM
In each successive year of the Yet, 2020 – and the ravaging impacts of COVID-19 – caused the apartment
market cycle that spanned from industry to second-guess urbanism altogether. Its early innings of this next
decade; however, the next few years will prove crucial in determining the
2010 to 2020, the question direction of renter demand, and how apartment developers will respond
to it.
of urbanism came more into
focus. For the first half of A TALE OF TWO CITIES
Seattle’s recent ascendancy as one of the most desirable cities for renters
the last decade, apartment and apartment developers alike met an abrupt halting over the course of
the last year. As both renters and investors second-guessed their interest in
developers focused on dense, Seattle, it didn’t take either long to make their way across Lake Washington
urban neighborhoods – with to settle on Bellevue as the next-best alternative.
Nationwide, in 2020 most all urban centers felt the impacts of COVID-19
nearly 90% of all development in the form of lessened demand, yet somehow Bellevue defied the odds.
planned in urban cores. That Renters chose it over Seattle – as did employers, leading the apartment
development community to flock en masse to Bellevue.
number shifted closer to 60% by
the time the decade closed.
14 SIMON | ANDERSON TEAM 2021 APARTMENT MARKET STUDYKING COUNT Y
205,409 113,082
TOTAL INVENTORY TOTAL PIPELINE
2021 APARTMENT MARKET STUDY SIMON | ANDERSON TEAM 15KING COUNT Y NORTH
KING
URBAN KING Kirkland,
DEVELOPMENT Green
Juanita &
Totem Lake
OVERVIEW Ballard Lake Roosevelt
Wallingford University
District
Over the course of the last year, apartment development in Fremont
Urban King County shifted from a gold rush to plugging holes in Magnolia
a dam. Its challenging – and fruitless – the cease work on projects
Queen
under construction and a current pipeline of over 15,000 units Anne Capitol
Hill West
under construction (compared to 16,000 at this time last year) South Lake Union
proves that point. Eastlake, Westlake Bellevue EAST
KING
First Hill, Yesler Terrace Central
The biggest change year-over-year are the number of projects
Belltown, Downtown, District
halted. As of Q1 2020, plans for approximately 2,500 units Pioneer Square,
were approved, yet construction had not commenced. Roll-
forward to 2021, and the number of permitted units skyrocket to
nearly 15,000 units. Due to slowed-demand, high construction Mercer
Island
costs, and a challenging capital markets environment, apartment
developers are waiting out the storm.
West South
Seattle Seattle
Despite a slowdown in construction starts, the overall pipeline of
units in review (applications submitted, yet not issued) is as high
as it’s ever been – representing 50% of all apartment inventory
in King County’s urban neighborhoods.
SOUTH
KING
Urban King Development Pipeline
UNDER CONSTRUCTION: 15,041 UNITS | 14% OF TOTAL INVENTORY
PLANS APPROVED: 14,462 UNITS | 14% OF TOTAL INVENTORY
IN REVIEW: 50,295 UNITS | 47% OF TOTAL INVENTORY
TOTAL INVENTORY: 105,953 UNITS
16 SIMON | ANDERSON TEAM 2021 APARTMENT MARKET STUDYKING COUNT Y
Urban King Historical Deliveries & Construction Pipeline by Neighborhood
INVENTORY AS OF YEAR-END 2009 INVENTORY GROWTH: 2010 - 2020 UNDER CONSTRUCTION
INCREASE OVER INCREASE OVER
Ballard 2,466 Units 2,485 Units 101% 2010 INVENTORY 298 Units 6% EOY 2020 INVENTORY
Fremont, Green Lake &
Wallingford
3,985 Units 2,608 Units 65% 903 Units 14%
University District &
Roosevelt
6,101 Units 3,171 Units 52% 1,610 Units 17%
Queen Anne & Magnolia 7,037 Units 2,124 Units 30% 506 Units 6%
South Lake Union,
Westlake & Eastlake
3,639 Units 5,788 Units 159% 2,094 Units 22%
Belltown, Downtown &
Pioneer Square
7,827 Units 7,325 Units 94% 3,721 Units 25%
First Hill & Yesler Terrace 3,869 Units 2,037 Units 53% 2,294 Units 39%
Capitol Hill 10,926 Units 4,409 Units 40% 337 Units 2%
Central District 1,478 Units 831 Units 56% 731 Units 32%
West Seattle 4,303 Units 1,646 Units 38% 743 Units 12%
South Seattle 2,307 Units 833 Units 36% 796 Units 25%
West Bellevue &
Mercer Island
6,393 Units 3,569 Units 56% 614 Units 6%
Kirkland, Juanita &
Totem Lake
6,664 Units 1,539 Units 23% 394 Units 5%
NOTE: PIPELINE ONLY INCLUDES # OF UNITS CURRENTLY UNDER CONSTRUCTION. PROJECTS THAT ARE “APPROVED” OR “IN REVIEW” ARE NOT INCLUDED IN THIS CHART.
SOURCE: COSTAR
2021 APARTMENT MARKET STUDY SIMON | ANDERSON TEAM 17KING COUNT Y
EXISTING APARTMENT INVENTORY: 4,951 UNITS
Construction Approved In Review Total Pipeline Microhousing Pipeline APARTMENT
Ballard 298 306 2,276 2,880 1,208 MICROHOUSING*
6% 6% 46% 58% of inventory 24% of inventory MIXED*
Highly concentrated *DEFINITIONS FOR “MICROHOUSING” & “MIXED” DEVELOPMENTS AVAILABLE ON PAGE 64
development areas
Seaview Pl NW
28th Ave NW
such as Market Street
NW 85th St
Dr NW
Gardens
and the 15th Ave Lo
ya
lW
ay
26th Ave NW
NW
Corridor highlight
Golden
20
60 NW 80th St
54
Ballard’s development
21st Ave NW
PUGET 60
Seaview Ave NW
pipeline. SOUND
Mary Ave NW
32nd Ave NW
FREMONT
GREEN LAKE
24th Ave NW
15th Ave Corridor
NW 73rd St
WALLINGFORD
12th Ave NW
163 SEE PAGE 19
NW 70th St
NW Sloop Pl
33rd Pl NW
30
It certainly feels like Ballard is
8th Ave NW
NW 68th St
growing faster than other North
Seattle neighborhoods. Observing NW 65th Court NW 65th St 60
22
the high-density of development 35
lining Market Street, it’s clear NW 62nd St
that projects are moving north NW 61st St NW 61st St
22
to the 15th Ave corridor, offering NW 59th St 52
more affordable and efficiently 118 80 21
27
designed apartments. This shift 51
161 28
Ba
NW 56th St 55 106
rn
60 130
finds validation in that nearly half
es
NW Market St
102 86 32
Av
181
84 St 228
NW
e
150 171
of planned development is made
Le
NW
NW 54th
122
ar
NW 54th St 59
Ma
yA
48
rke
up of efficiency units.
ve
68
NW
t St
NW 51st St
134
It’s close vicinity to Downtown, Green
NW Le
Lake, and South Lake Union make ary Way
NW Ballard Way NW 47th St
Ballard one of Seattle’s most desirable
Le
Shil
neighborhoods; and we expect sho
ar
le A
yW
ve N
W
ay
developers to aggressively seek QUEEN ANNE
NW
more development opportunities MAGNOLIA
Baker Ave NW
in this favorite neighborhood. SEE PAGE 21
NW 42nd St
NW 41st St
NW 39th St
18 SIMON | ANDERSON TEAM 2021 APARTMENT MARKET STUDYKING COUNT Y
EXISTING APARTMENT INVENTORY: 6,593 UNITS
APARTMENT Construction Approved In Review Total Pipeline Microhousing Pipeline
MICROHOUSING* 903 708 2,246 3,857 1,215 Fremont, Green Lake
MIXED* 14% 11% 34% 59% of inventory 18% of inventory & Wallingford
*DEFINITIONS FOR “MICROHOUSING” & “MIXED” DEVELOPMENTS AVAILABLE ON PAGE 64
73 27
88
202 N 85th St The 98103-zip
66
93
code continues to
74
26
N 80th St outperform other
34
urban Seattle
PHINNEY
RIDGE 41
neighborhoods.
32 10
45
157 21
25
35
28
GREEN 98 116
12 LAKE Pre-COVID, this submarket thrived
with a limited supply of available
GREEN
LAKE development opportunities in its
most desirable areas: Fremont
99
Ave N, N 45th Street, and Green
BALLARD UNIVERSITY Lake proper. During COVID, zoning
SEE PAGE 18 DISTRICT & restricted density, and desirable
ROOSEVELT parks helped owners retain quality
SEE PAGE 20 residents with less rent reductions
102 and vacancy loss than other
127 competing neighborhoods. If you
66 want to know where to target new
40 18
180 development opportunities, look
12
43 42 78 on the map where others are not:
93
WALLINGFORD Phinney Ridge, Fremont Ave N, and
Stone Way Corridor
106 N 45th Street.
FREMONT 57
118
128
32 153
27 19 140
23
70 67 42 19
39 146
50 103 236
56
122
QUEEN ANNE
MAGNOLIA
SEE PAGE 21 2021 APARTMENT MARKET STUDY SIMON | ANDERSON TEAM 19KING COUNT Y
EXISTING APARTMENT INVENTORY: 9,272 UNITS
Construction Approved In Review Total Pipeline Microhousing Pipeline APARTMENT
University District 1,610 1,627 4,707 7,944 1,149 MICROHOUSING*
& Roosevelt 17% 18% 51% 86% of inventory 12% of inventory MIXED*
*DEFINITIONS FOR “MICROHOUSING” & “MIXED” DEVELOPMENTS AVAILABLE ON PAGE 64
Big changes are on the NE Park Pl
55th Ave NE
NE 75th St
ROOSEVELT
horizon – and in the skyline
25th Ave NE
Ravenna Ave NE
NE 74th
52nd Ave NE
NE 73rd St NE 73rd St
– for the University District
30th Ave NE
44th Pl NE
20th Ave NE
37th Ave NE
NE 70th St NE 70th St NE 73rd St NE 70th St
Sand Point Way NE
See Roosevelt inset to
the67th
NE right
St of this map
It’s no secret that the University District
31st Ave NE
91
faced some headwinds over the past NE
NE 65th St 57 NE 65th St
year. However, there was still positive Na
om NE Princeton Way NE 64th S
43rd Ave NE
iP
l
22nd Ave NE
movement in 2020 with 500 new units
O
8th Ave NE
be
coming online and an additional 1,400
rli
12th Ave NE
n
Av
56th Ave NE
e
new units with approved permits. 102
NE
E
N
34th Ave NE
39th Ave NE
NE 67th St
26th Ave NE
31
Pl
en
The University of Washington is doubling Co
w
40
82 254
down on its footprint, committing to 10
20 79 33 77
Ave NE
74
6,000,000 square feet of expansion to 5th S
t 54
165NE 55th St235 131
Roosevelt Way NE
27 90 NE 5 26
Ra
create an “Innovation District”, bridging Roosevelt 35
ve
Brooklyn Ave NE
7th Ave NE
Princeton
52 NE Keswick Dr
nn
59
17th Ave NE
55
Station
aP
58
the campus with the neighborhood. This 26
NE
N
lN
64
E
Opens 2021
Na
Bl
47th Ave NE
E
49 31
ak
development, coupled with the long-
el
30
35th Ave NE
ey
30 26
139
St
30 182 278
awaited light rail station opening in 2021, 47 14 NE 50th St
33 54 265
171 NE 49th St
continues attracting not only multifamily 66
180
129 80 Terrace Dr NE
8th Ave NE
50
Un
236
developers, but office and bio-tech as NE 47th St
io
NE 47th St
EL
98
nB
40th Ave NE
168
au
32
well, as there is over 650,000 square feet 100 211
ay
12th Ave NE
re
330 75
P
l
110
Dr
lN
201 70
of new office/lab space in planning and 237 345
E
NE
NE 45th St NE 45th St
review in the University District. 19 U District Station
52
20 NE 43rd St
Opens 2021 NE 43rd St
E
48 224
N
200 402
The University District will be a much
NE
43
Pl
54
Franklin Pl NE
200 NE 41st St
Rd
different neighborhood by 2025,
en
100
ille
34 260
w
Ore
and we look forward to watching its 42
Co
43rd Ave NE
7th Ave NE
NE 41st St
d
79 NE 38th St
Pen
transformation. 43 NE Campus Pkwy
sevelt Way NE
NE Pacific St
lyn Ave NE
th Ave NE
20 SIMON | ANDERSON TEAM 2021 APARTMENT MARKET STUDYKING COUNT Y
EXISTING APARTMENT INVENTORY: 9,161 UNITS
APARTMENT Construction Approved In Review Total Pipeline Microhousing Pipeline
MICROHOUSING* 506 1,042 1,880 3,428 524 Queen Anne &
MIXED* 6% 11% 21% 37% of inventory 6% of inventory Magnolia
*DEFINITIONS FOR “MICROHOUSING” & “MIXED” DEVELOPMENTS AVAILABLE ON PAGE 64
Queen Anne has many
NE Park Pl
55th Ave NE
W
Em
NE 75th St FREMONT
faces, some have fared
ers
on
Pl
GREEN LAKE
WALLINGFORD better than others,
25th Ave NE
Ravenna Ave NE
Gil
W Emerson St W Emerson St
ma
52nd Ave NE
W Tilden St
nA
SEE PAGE 19
but don’t forget about
ve
NE 73rd St
W
70
34th Ave W
W Bertona St
Magnolia.
30th Ave NE
87
44th Pl NE
39
Magnolia Blvd W
W Dravus St W Dravus St
20th Ave NE
37th Ave NE
9th Ave W
MAGNOLIA W Florentia St
64
W Viewmont Way W
NE 70th St NE 70th St
8th Ave W
NE 70th St
28th Ave W
West QA, Nickerson, Upper QA,
5th Ave W
W
Raye St
ve
The South Slope, Lower QA and
Gil
140
eA
ma
dyk
7th Ave W
Smith St
nD
Aurora all claim Queen Anne as
orn
50
rW
Wmont Way W
Th
24 47
167 home; however, to owners and
INTERBAY 52 Boston St residents alike, these micro-markets
31st Ave NE
Clise Pl W
325
vary greatly in rent, vacancy and
40
NE 65th St NEdesirability.
65th St Each micro market will
6th Ave W
W Howe St
W Blaine St
QUEEN 99
recover at its own pace, simply look
14th
at the map and you’ll see, if Queen
ao Magnolia Bridge
ANNE NE Princeton Way
Ave
43rd Ave NE
mi W Galer St W Galer St
63
Anne were a pond, be hesitant near
Pl
W
22nd Ave NE
Ol
the edges at this time.
ym
pic
O
Wa
be
y
Additionally, pay close attention
Queen Anne Ave N
W
r lin
Taylor Ave N
24 to the first new apartment
Av
W 36 99
56th Ave NE
Me W Olympic Pl
65 63 developments in downtown
e
rce
rP
NE
l 160 93 167
Roy St 125
Magnolia in a decade. COVID has
5th Ave N
100 93 113
Mercer St
65
169 made this a newly desirable, less
1st Ave N
34th Ave NE
39th Ave NE
125 265
26th Ave NE
W Republican St
PUGET 58 95
W Harrison St
143 dense market home for many and
SOUND 66
we feel bullish about it.
2nd Ave N
49
73
77
Ave NE
t
5th S
NE 5 NE 55th St
Ra
ve
Princeton
NE K
nn
Ave NE
aP
2021 APARTMENT MARKET STUDY SIMON | ANDERSON TEAM 21
N
lN
E
Bl
E
E
akKING COUNT Y
EXISTING APARTMENT INVENTORY: 9,427 UNITS
Construction Approved In Review Total Pipeline Microhousing Pipeline APARTMENT
South Lake Union, 2,094 1,635 4,908 8,637 312 MICROHOUSING*
Eastlake & Westlake 22% 17% 52% 92% of inventory 3% of inventory MIXED*
*DEFINITIONS FOR “MICROHOUSING” & “MIXED” DEVELOPMENTS AVAILABLE ON PAGE 64
Construction pipeline
Fu
hr
m
FREMONT
an
slowed, yet overall SOUTH LAKE UNION
N
Av
GREEN LAKE
e
e
E
103
Av
WALLINGFORD
development remains 126
w
SEE PAGE 19 109
Dexter Ave N
vie
robust.
ir
Fa
Harvard Ave E
e E
Av
ke
88
Ela
Minor Ave N
50 10
99 55 E Roanoke St
162
Valley St
9th Ave N
South Lake Union as a residential 207
We
st
apartment market is barely 20 years
lak
218
eA
56 73
old, yet its inventory of apartment ve EASTLAKE
5th Ave N
8th
De
N
units begins to rival other well- Mercer St
xte
Ave
60
rW
Minor Ave E
N
established urban neighborhoods
ay
30
N
Westlake Ave N
in Seattle. The overall pipeline of
Fairview Ave N
113
WESTLAKE LAKE Yal
units under development and e
Boren Ave N
Pl
E
UNION
Terry Ave N
construction, once completed, 143
242
will nearly double the size of this 59 330
neighborhood. Harrison St 292 Harrison St
34 160
Development continues to
expand to both the western and 240
eastern shores of the lake – better
N
85 341 374
e
Av
connecting South Lake Union 278 120
w
Dexter Ave N
vie
John St 415
John St
ir
Fremont, Wallingford, and the
Fa
340
University District. Although the 1,097
Minor Ave N
432
Valley St 464 480
9th Ave N
great majority of pipeline is still E Denny Way
5th Ave N
under review, thousands of units Mercer St
CAPITOL
HILL
Westlake Ave N
are both underway and permitted
Fairview Ave N
See South Lake
Boren Ave N
Terry Ave N
– guaranteeing expansion of Harrison St
Union inset to the SEE PAGE 25
BELLTOWN,
right of this map Harrison St
available apartments units in the 216 60
DOWNTOWN &
near-term. PIONEER SQUARE
John St John St
154 SEE PAGE 23
E Denny Way
22 SIMON | ANDERSON TEAM 2021 APARTMENT MARKET STUDYKING COUNT Y
EXISTING APARTMENT INVENTORY: 15,152 UNITS
APARTMENT Construction Approved In Review Total Pipeline Microhousing Pipeline
MICROHOUSING* 3,721 3,386 11,010 18,117 47 Belltown, Downtown &
MIXED* 25% 22% 73% 120% of inventory 0.3% of inventory Pioneer Square
*DEFINITIONS FOR “MICROHOUSING” & “MIXED” DEVELOPMENTS AVAILABLE ON PAGE 64
Once considered a single
Fairview Ave
e
1,050Denny
Dexter Av
149 350 420 Way
“downtown” market
W 60 406
es 1s 3r
te tA d
rn Av 622 940
CAPITOL HILL
St
ve 383
105 Ave e
99
400
e
– each micro market
St
37 403
n
Vi
rd
ay
Midtown SEE PAGE 25
a
90 eW
ch
Te iv
r Ol
an
8t ry 428
adjacent to downtown
400
Bl
285 h Av
112 5t Av 569 e
Westlake
212 h e
St
186 Av
323 119 400
156
ry
e
St
continues to define itself.
tte
59
St
332 e
Pin
Ba
180
ay
463
Cl
180 250
Av
458
Belltown 494
7th
St
e
59 435
e
El
Av
n
lio 222 459
Vi
233 St
e
tt e
Av
e Pik
Ellio 50
tt Av 200 49
e
6th
St
To say that downtown Seattle is at
Av
rt
wa
e
498
e
69
a crossroads in 2021 is a massive
St
190
St 442 St CENTRAL understatement! Demand drivers –
e ity
Pin
iv ers DISTRICT in the form of office occupiers and
Un FIRST HILL
We
7t & YESLER apartment renters – are at an all-time
s
SEE PAGE 26
h
ter
Av
Downtown t t
gS
nA
nS e
r in
dis
o TERRACE low, while both inventory of available
ve
Sp
Ma
245 SEE PAGE 24 apartment units and pipeline of
t additional residential units are at an
sS
ELLIOTT St
1,020
Ja
m e
all-time high.
on
BAY Ma
ri
26 422
COVID changed the landscape of
Yesler Way urban downtowns, causing renters,
Pioneer Square 80
developers, and investors to re-think
Alaskan Way S
66
85
5th Ave S
54
200 205 urbanization. Apartment development –
160
7th Ave S
S Jackson St
321 120
especially large-scale, high-rise projects
8th Ave S
– are years in the making. Near-term
Rai
S King St 54
206 105
halted demand, coupled with a massive
n
ier
Av
International District 103 pipeline of apartment development,
eS
Se
S Dearborn St att
106 le
Bl create a challenging environment in
Jose Riz
vd
S 390
Seattle’s downtown markets. 2021 is
al Bridg
a pivotal year for Seattle to prove the
7th Ave S
99
viability of its downtown and adjacent
Po
e
p
lar
micro markets.
Pl S
S Royal Brougham Way
3rd Ave S
SA
tla
nt
ic
St
2021 APARTMENT MARKET STUDY SIMON | ANDERSON TEAM 23KING COUNT Y
EXISTING APARTMENT INVENTORY: 5,906 UNITS
Construction Approved In Review Total Pipeline Microhousing Pipeline APARTMENT
First Hill & 2,294 853 2,869 6,016 215 MICROHOUSING*
Yesler Terrace 39% 14% 49% 102% of inventory 4% of inventory MIXED*
*DEFINITIONS FOR “MICROHOUSING” & “MIXED” DEVELOPMENTS AVAILABLE ON PAGE 64
First Hill saw numerous 50 St
E Union
high-rise towers get out of
11
135 60
th
Su
t
nS
Av
mm
nio
the ground in 2020, marking E Seneca St
e
U
it A
St 227
ity
ve
ers
a major milestone for the new Un
iv 352
wave of development activity
Bo
yls
St
ca
ton
9th
ne t
gS
in the neighborhood. Se rin
Av
Av
Sp
e
e
Mi
7th Ave
First Hill
no
Broadway
rA
548
ve
9th
178
Te
With 7 other high-rise developments totaling
rr
Av
yA
e
over 1,700 units in planning and pre- y
ve
Wa
es
7th
275
275
275
construction, First Hill continues its growth in am
EJ
CENTRAL
Av
e
not only height but also nearly doubling its unit 287 St
ai
486
DISTRICT
lu mb 107
count. This study does not track affordable Co
77 SEE PAGE 26
328 t
housing, however it is worth noting a 17-story, onS 19
10th Ave
rs
ffe
365-unit affordable housing project at 1400 43 204 Je
E Terrace St
Madison was recently approved and is now St ce
St
me
s rra
under construction. Expect First Hill to continue Ja
rso
nS
t Te
ffe
its transition from a collection of stark medical
Bo
Je
re
Yesler
12th Ave
350 112
nA
buildings into a place-making neighborhood Terrace
ve
with resident amenities abound. t
103
rS
de 92
Al
The microhousing unit pipeline in First Hill and
Yesler Terrace doubled since last year, yet the BELLTOWN, 261
product type is still under-represented. Expect DOWNTOWN & Yesler Way E Yesler Way
developers to continue to increase the number PIONEER SQUARE
8t
h
Bo
of small units in their projects in order to cater Av
re
SEE PAGE 23 335
e
354 200
n Av
to the high number of students and medical 215
e S
workers that desire simplicity and affordability
160
12th Ave S
258
over luxury.
S Jackson St
24 SIMON | ANDERSON TEAM 2021 APARTMENT MARKET STUDYKING COUNT Y
EXISTING APARTMENT INVENTORY: 15,335 UNITS
APARTMENT Construction Approved In Review Total Pipeline Microhousing Pipeline
MICROHOUSING* 337 1,032 2,630 3,999 858 Capitol Hill
MIXED* 2% 7% 17% 26% of inventory 6% of inventory
*DEFINITIONS FOR “MICROHOUSING” & “MIXED” DEVELOPMENTS AVAILABLE ON PAGE 64
Volunt
eer Park
Rd
See North Capitol Hill & NORTH CAPITOL HILL & Warren Buffett says be
Madison Park inset
MADISON PARK fearful when others are
Belmont Pl E
to the right of this map
15th Ave E
Broadway E
MADISON
greedy, and greedy
22nd Ave E
18th Ave E
20th Ave E
11th Ave E
47
PARK 14
evu
eP
lE E Aloha St when others are fearful.
Bell 39
61
38
Warren Buffett would find
17th Ave E
14
21
38
E Roy St
opportunities abound in
20
Capitol Hill right now.
58 68
See magnified section
Bellevue Ave E
12th Ave E
36 58
36 40
to the left of this map
CENTRAL
48
E Republican St
DISTRICT Last decade Capitol Hill made
60
Summit Ave E
118
Malden Ave E
89
national news for its robust rent
10th Ave E
19 SEE PAGE 26
growth and development pipeline,
45 20 34
41
leading Seattle’s stratospheric rise
56
30 34 Coryell Ct E as a newly minted gateway city. Then
23rd Ave
E Thomas St 70 90 86
Broadway E
22 450
E Th
om COVID came, add a few weeks of
Melrose Ave E
as S
t
22
CHOP and it’s been in the doghouse
Harvard Ave E
31
E John St 17
47
167
188
since.
171 213 43
E Loretta Pl 93 18 29
50 E Denny Way 26
47 Apartment owners are soured by
14th Ave
21
31 2020, but as Live-Work-Play returns,
17th Ave
Melrose Ave
Capitol Hill will remain at the heart
ay
Belmont Ave
E Howell St
eW
33 15
41 of the region’s resurgence; and for
liv
EO
50
the first time providing a light rail
69
Boylston Ave
connection between Seattle, Bellevue,
12th Ave
Broadway
15th Ave
Yale Ave St
79 dis
on and Redmond. The value proposition
EM
a CENTRAL
E Pine St
DISTRICT is low during a pandemic, but it won’t
11th Ave
80
Mi
53 be long, and then expect the young
no
48
SEE PAGE 26
rA
38
renter-set itching to get back in the
ve
E Pike St
93
Bellevue Ave
57
“scene”, any they’ll know where to
128
go… Capitol Hill!
13th Ave
51
E Union St
2021 APARTMENT MARKET STUDY SIMON | ANDERSON TEAM 25KING COUNT Y
EXISTING APARTMENT INVENTORY: 2,309 UNITS
Construction Approved In Review Total Pipeline Microhousing Pipeline APARTMENT
Central District 731 818 2,013 3,562 276 MICROHOUSING*
32% 35% 87% 154% of inventory 12% of inventory MIXED*
*DEFINITIONS FOR “MICROHOUSING” & “MIXED” DEVELOPMENTS AVAILABLE ON PAGE 64
Seattle’s next hot 82
neighborhood.
32nd Ave E
CAPITOL HILL
SEE PAGE 25
E John St
46
E Denny Way
It wasn’t until the last decade that
Capitol Hill competed for renters
with the Central District. Yet, now St
on
the Central District is competing a dis
EM
stride-for-stride with Capitol Hill in 200 107
E Union St
attracting both new retail concepts 434
34h Ave
126
18th Ave
and apartment renters alike. With
nearly 20% of its development 34
Martin Luther King Jr Way
pipeline under construction, the FIRST HILL
12th Ave
Central District is moving quickly & YESLER E Cherry St
110
90
36
to establish itself as its own sought- TERRACE 28
23rd Ave Corridor
after neighborhood. SEE PAGE 24 56 40
As its name implies, easy access 29
369
to job centers in both downtown 42 76
Seattle and the Eastside, make the 268
E Yesler St
285 244
Central District a natural market for
continued growth. The East Union LAKE
S Jackson St 161 WASHINGTON
31st Ave S
Retail District forming along E. Union 30
from 20th Ave to 25th Ave continues 206 13
to define the neighborhood’s
23rd Ave S
sense of community, history, and
Lakeside Ave S
transformation. 396
17
26 SIMON | ANDERSON TEAM 2021 APARTMENT MARKET STUDYKING COUNT Y
EXISTING APARTMENT INVENTORY: 5,949 UNITS
APARTMENT Construction Approved In Review Total Pipeline Microhousing Pipeline
MICROHOUSING* 743 478 1,981 3,202 474 West Seattle
MIXED* 12% 8% 33% 54% of inventory 8% of inventory
*DEFINITIONS FOR “MICROHOUSING” & “MIXED” DEVELOPMENTS AVAILABLE ON PAGE 64
40
65
Who could have
WEST SEATTLE JUNCTION
ELLIOTT BAY 135 predicted the West Seattle
SW Avalon
8
15 Corridor Bridge would break,
adding an extra level
California Ave SW
7
142 100 of inconvenience to an
49
11
87
44 already challenging 2020?
ALKI
110
135
The Junction 71
West Seattle Bridge 35
77
SW Genesee St
36
494 Despite the numerous challenges that
273
See West Seattle 58 110 2020 brought, West Seattle’s apartment
38
Junction inset to the development pipeline remained
right of this map
resilient, as both the number of projects
35th Ave SW
SW Alaska St
306
51 under construction and projects
82
approved increased by nearly 10% year-
SEAVIEW
35
22 56 over-year. This clearly demonstrates that
10
27 developers who already have projects
36 in process believe in West Seattle as a
long-term market. However, there was
a decrease in new projects proposed,
58 evidencing a wariness of new entrants
39th Ave SW
DELRIDGE
45
in the market in 2021.
SW Brandon St
124
Expect development activity to pick up
as the bridge gets close to opening in
2022. With time, expect West Seattle
to return to its pre-COVID strength and
32 SW Juneau St renters choosing it as one of Seattle’s
32
24 40 21
66
59
best close-in urban neighborhoods.
70
2021 APARTMENT MARKET STUDY SIMON | ANDERSON TEAM 27KING COUNT Y
EXISTING APARTMENT INVENTORY: 3,140 UNITS
Construction Approved In Review Total Pipeline Microhousing Pipeline APARTMENT
South Seattle 796 2,362 5,285 8,443 2,105 MICROHOUSING*
25% 75% 168% 269% of inventory 67% of inventory MIXED*
*DEFINITIONS FOR “MICROHOUSING” & “MIXED” DEVELOPMENTS AVAILABLE ON PAGE 64
The future Seattle-to-
Eastside connection
has South Seattle MERCER
developers dreaming ISLAND
of tech workers See Mount Baker inset
on the next page
SEE PAGE 30
moving south.
LAKE
WASHINGTON
BEACON
HILL
As Seattle continues to grow,
no amenity is more valuable to
See Columbia City inset
residents than connectivity. Much on the next page
like the connectivity from San
Francisco along the tech corridor RAINIER
to Palo Alto / Silicon Valley, the VALLEY
Bellevue and Redmond Tech light
rail expansions opening in 2023 GEORGETOWN
211 53
will Seattle to the Eastside in less
176
than 30 minutes. 200 400
213 79
The imminence of light rail is 32
186
resulting in a flurry of development, 57
specifically in South Seattle 236
neighborhoods directly on the 30
42
light rail line. We are seeing 306
70
neighborhoods like Mount Baker, SOUTH KING 31
Columbia City, and Othello flourish SEE PAGE 36
with development due to their
proximity to light rail.
28 SIMON | ANDERSON TEAM 2021 APARTMENT MARKET STUDYKING COUNT Y
MOUNT BAKER COLUMBIA CITY
CENTRAL
DISTRICT La
ke
38th Ave S
W
SEE PAGE 26 as
hi
ng
to
n
Bl
vd
80
26 S
82
15th Ave S
Ma
226
rt i n
51
Rainie
Lu t
S Genesee St
her
158
r Av e
134 46
Kin
61 271 298
S
Martin Luther King Jr Way S
gJ
26 43 186 202
42nd Ave S
27
rW
S Holgate St 177
38
ay
200 50
23 136 94 S Alaska St
S
32
95 42 73
93
Be
15 128
ac
37 88
on
270
S College St
Av
eS
100
24
23rd Ave S
Ra
103
67
ini
84 104 73 93
45
er
37 80
85
48th Ave S
120
Av
14
52
eS
140
S McClellan St 28
52
136
S Orcas St
164
271
S Hanford St
15th Ave S
33 25 55
156
106
35 43
44th Ave S
45
69
S Spokane St
S Graham St
113
118
2021 APARTMENT MARKET STUDY SIMON | ANDERSON TEAM 29KING COUNT Y
EXISTING APARTMENT INVENTORY: 9,962 UNITS
Construction Approved In Review Total Pipeline Microhousing Pipeline APARTMENT
West Bellevue & 614 215 6,472 7,301 0 MICROHOUSING*
Mercer Island 6% 2% 65% 73% of inventory 0% of inventory MIXED*
*DEFINITIONS FOR “MICROHOUSING” & “MIXED” DEVELOPMENTS AVAILABLE ON PAGE 64
Location, Location,
Location: West Bellevue
remains the hottest
104
102 138
103
submarket in the Puget NE 8th St
1,940
330
263
Sound area.
1,289 562
100 Bellevue Downtown
220 Station Opens 2023
100 165 140
77 326 57
144 336
93 145
88 190
Main St EAST KING
Bellevue Way SE
125
As the downtown Bellevue skyline SEE PAGE 35
quickly transforms to rival that of East Main Station
Seattle, developers are racing to Opens 2023
find any undeveloped land left east
LAKE
WASHINGTON
112th Ave SE
of Lake Washington. With a massive
pipeline of office space – upwards WEST
of 10,000,000 square feet and BELLEVUE
thousands of apartment units (plus
a future light rail station), we expect
118th Ave SE
quick absorption and continued
rental rate growth for apartment units
in downtown Bellevue.
Mercer Island Station
Challenges faced by Seattle in 2020, Opens 2023
combined with Big Tech’s expansion
eastward, is transforming Bellevue into
MERCER
the crown jewel of the Puget Sound ISLAND 164
South Bellevue Station
Island Crest Way
investment market. The ecosystem of Opens 2023
both demand and development in
Bellevue nearly guarantees a robust
future for this once sleepy bedroom
community. Pricing is sky-high, yet so
are the opportunities.
30 SIMON | ANDERSON TEAM 2021 APARTMENT MARKET STUDYKING COUNT Y
EXISTING APARTMENT INVENTORY: 8,203 UNITS
APARTMENT Construction Approved In Review Total Pipeline Microhousing Pipeline
MICROHOUSING* 394 0 2,018 2,412 0 Kirkland, Juanita
MIXED* 5% 0% 25% 29% of inventory 0% of inventory & Totem Lake
*DEFINITIONS FOR “MICROHOUSING” & “MIXED” DEVELOPMENTS AVAILABLE ON PAGE 64
With restrictive zoning
NE 120th Pl
and limited land sellers,
NE 124th St
the Kirkland apartment
395
pipeline hit a three year
JUANITA low – despite developers
NE 120th St
TOTEM LAKE
eagerly pursuing new
98th Ave NE
12
NE 116th St
development.
Despite massive growth in the
130
development pipelines in other
Eastside markets, Kirkland, Juanita,
and Totem Lake’s pipeline slowed
considerably this past year. With only
400 units under construction and no
projects approved to break ground, we
EAST KING expect rental rates to climb as supply
18th St NE 100th St SEE PAGE 35 lags demand.
As opportunities for development
Market St
wane in downtown Kirkland and
Juanita, expect apartment developer
to continue to push eastwards and
northwards – finding additional projects
LAKE
DOWNTOWN in Totem Lake and Rose Hill. Demand
WASHINGTON KIRKLAND 873 133 drivers across all Eastside markets are
NE 85th St
predicted to remain strong, providing
70
367
a further incentive to find development
171 opportunities in well-located, and
141 NE 80th St amenitized neighborhoods.
2021 APARTMENT MARKET STUDY SIMON | ANDERSON TEAM 31KING COUNT Y
NORTH SNOHOMISH
KING
SUBURBAN KING
DEVELOPMENT
OVERVIEW
URBAN EAST
2020 was unsurprisingly a very tough year for apartment investors
KING KING
and developers alike across Puget Sound. Predominantly,
apartment investors and developers fled from Seattle to pursue
opportunities in suburban King County. There were two main
factors that led to this suburban flight: renter demand and
light rail.
With working from home becoming the new norm and, in some
cases, the only choice, residents searched for larger units and
(slightly) lower rent outside of the city. Along with occupancy SOUTH
rates rising higher outside the city, light rail continues to bring KING
with it developer demand and new development sites popping
up along light rail line throughout suburban King.
East King continues to lead suburban markets when it comes to
demand for development sites from apartment developers. Yet,
with light rail lines providing the roadmap for new development
north, south, and east – all markets will benefit from the push
towards more transient oriented development (TOD).
PIERCE
Suburban King Development Pipeline
UNDER CONSTRUCTION: 6,559 UNITS | 7% OF TOTAL INVENTORY
PLANS APPROVED: 5,072 UNITS | 5% OF TOTAL INVENTORY
IN REVIEW: 21,653 UNITS | 22% OF TOTAL INVENTORY
TOTAL INVENTORY: 99,456 UNITS
32 SIMON | ANDERSON TEAM 2021 APARTMENT MARKET STUDYKING COUNT Y
Suburban King Historical Deliveries & Construction Pipeline by City
INVENTORY AS OF YEAR-END 2009 INVENTORY GROWTH: 2010 – 2020 UNDER CONSTRUCTION
Auburn, Covington &
Maple Valley
5,099 Units 622 Units 13% INCREASE OVER
2010 INVENTORY 343 Units 6% INCREASE OVER
2020 INVENTORY
Bothell & Kenmore 2,628 Units 1,674 Units 56% 0 Units
Burien & White Center 4,123 Units 166 Units 4% 0 Units
Des Moines & SeaTac 4,175 Units 308 Units 8% 0 Units
East Bellevue & Newcastle 8,587 Units 1,990 Units 27% 293 Units 3%
Issaquah 2,553 Units 1,401 Units 62% 535 Units 15%
Kent 11,623 Units 1,448 Units 13% 157 Units 1%
North Bend & Snoqualmie 489 Units 100 Units 20% 212 Units 36%
North Seattle 10,290 Units 4,167 Units 28% 1,869 Units 10%
Redmond 7,119 Units 3,554 Units 54% 1,317 Units 13%
Renton & South Seattle 11,810 Units 1,446 Units 14% 681 Units 6%
Sammamish 835 Units 249 Units 30% 0 Units
Shoreline 2,576 Units 814 Units 42% 721 Units 26%
Tukwila 3,017 Units 0 Units 210 Units 10%
Woodinville 659 Units 1,424 Units 210% 261 Units 12%
Note: Pipeline only includes # of units currently under construction. Projects that are “Approved” or “In Review” are not included in this chart.
Cities not included in this chart saw no deliveries 2010 – 2020 and/or have no units currently under construction.
Source: CoStar
2021 APARTMENT MARKET STUDY SIMON | ANDERSON TEAM 33KING COUNT Y
EXISTING APARTMENT INVENTORY: 22,149 UNITS
Construction Approved In Review Total Pipeline Microhousing Pipeline APARTMENT
North King 1,979 1,709 10,519 14,207 786 MICROHOUSING*
9% 8% 47% 64% of inventory 1% of inventory MIXED*
*DEFINITIONS FOR “MICROHOUSING” & “MIXED” DEVELOPMENTS AVAILABLE ON PAGE 64
Long awaited light
rail opens this year, 181
241 266
KENMORE BOTHELL
and apartment 212
200
912
development 170 Shoreline
North Station LAKE 522
Opens 2024 FOREST
continues to boom. PARK
SHORELINE
330
It’s no secret, developers 1,358 35
love North King. Pockets of 173 115
166
developments in Greenwood 99 299 482 213 164
16
and Northgate are planned 100
81 209 65 63 125
73 120
to take advantage of the 20 Shoreline 69 130
Northgate Light Rail Station South Station
KIRKLAND
which is set to open this Fall. Opens 2024 70 SEE PAGE 31
150 99
This market continues as one of 210
327 160
the most sought-after areas in 31 356 158 50
the entire Puget Sound Region. BITTER LAKE 156
31
162
130
104 46
238
Greenwood and Northgate are 72 LAKE CITY
not the only markets receiving 20
57 110
concerted attention from 295
20
apartment developers. Lake 62 65
30
235
235
409 21
City continue to march forward Northgate 222
17 Station Opens124
with nearly 2,000 units planned 54 50
2021
NORTHGATE
in the coming years and GREENWOOD
19
83 522
development sites continue
65
39
39
30 23
147 LAKE
to cluster around future light 49
154
297
27
72 WASHINGTON
194 21 70
rail stations at 145th Ave NE 200
100 141 203 140 67
and 185th Ave NE.
34 SIMON | ANDERSON TEAM 2021 APARTMENT MARKET STUDYKING COUNT Y
EXISTING APARTMENT INVENTORY: 28,960 UNITS
APARTMENT Construction Approved In Review Total Pipeline Microhousing Pipeline
MICROHOUSING* 3,654 1,371 7,698 12,723 0 East King
MIXED* 13% 5% 27% 44% of inventory 0% of inventory
*DEFINITIONS FOR “MICROHOUSING” & “MIXED” DEVELOPMENTS AVAILABLE ON PAGE 64 ond
Rd
m
Red
NE
As Microsoft, Google,
NE 100th St
NE Novelty Hill Rd
W
illo
ws
DOWNTOWN REDMOND and Amazon push
Rd
NE 95th St
NE
176
195th Ave NE
WOODINVILLE
DUVALL easterly, the popularity
160th Ave NE
154th Ave NE
St
NE 90th
425
of these markets grows
196th Ave NE
NE
Rd
87 55 109
le
da
203
on
233
exponentially.
Av
421 93
Construction
180
760
154th
Avonda
NE 83rd St l Rd
ion Hil
251 214 NE Un
195
Ave NE
NE 80th St
le Rd
NE Union Hill Rd
486 132nd Ave NE
88
17
311
Approved 102
17
164th Ave NE
0th
148th Ave NE
8th
48
185th Ave NE
Pl N
140th Ave NE
Pl
202 88
E
NE
85 450
NE 76th St
With almost 7,000 units total units
In Review Bear Creek Pkwy
NE
70th
Pl
2,117
425 in the pipeline for both Redmond
See Downtown
REDMOND
180th Ave NE
188th Ave NE
Redmond inset to
right of this map Downtown Redmond
135
and Overlake, these markets look
Subtotal Link Extension Opens to become hubs of the East side.
208th Ave NE
NE 65th St
NE 42nd St
163rd Ave NE
NE 40th St
2,117
NE 39th St NE 40th St
2024
156th Ave NE
Issaquah and Woodinville are not
E La
144th Pl NE
NE 38th Pl
214
ke S
NE 38th Ct
NE 60th St NE
am
36
far behind even without the light
th
188th Ave NE
ma
W
ay
W
mis
es
NE 36
140th Ave NE
th St
tL
156th Ave NE
hP
ak
E
rail connection.
kwy
eS
N
NE 34th St
EAST BELLEVUE / OVERLAKE
172nd Ave NE
Pl
am
18
h
NE
1st
4t
m
Pl
20
am
NE 30 NE 31 NE
th Ct
ish
st W
NE 31st Pl ay Nest 31st St
Pk
157th Pl NE
wy
SAMMAMISH
165th Pl NE
116th Ave NE
NE
140th Ave NE
NE 51st
See East Bellevue /
Nearly every Eastside market –
St
124th Pl NE
NE
NE
Pl
Overlake inset to the 634
NE Turning St NE 27th
h Ave
0th Ct
16
right of this map 300
355
from Woodinville to Issaquah
178t
263
134th Ave NE
Construction NE 25th Pl
NE 26th St
152nd Ave NE
e NE
NE 29th Pl
202 1,593 294
– is garnering the attention of
176th Ct NE
181st Av
NE 24th St
N E
443
Pl
120th Ave NE
apartment developers and renters.
6th
NE
21st NE 22nd Ct
13
Pl NE 21st St
402 122
Approved
182nd Ave NE
NE 20th St
397 NE 19th
St
Look for the strong development
114th Ave NE
685
669 249 Bel-R
ed Ro
ad NE 18th Pl
NE Spring Blvd
292 NE 16th St
pipeline to continue well into
162nd Ln NE
In Review
NE 14th Pl
172 NE 14th St
the future, fueled by the growth
164th Pl NE
420 127
E
1,908
ve N
NE 12th Pl
of the entire East King economy
rd A
293 101 NE 12t
h St NE 11th Pl
173
400 East Link Extension Opens 2023
135
and market dynamics that rivaled
166th Ave NE
N E
Subtotal NE 9th St
wy
143rd Ave NE
360
Pk
NE 8th St
93 NE 8th St
ish
98
4,170
am
Seattle during the last expansion
m
m
NE 6th St
Sa
346
156th Ave NE
ke
17
131st Ave NE
La
1s
cycle.
148th Ave NE
W
tP
164th Ave NE
lN
NE
128th Ave NE
E
NEWCASTLE ISSAQUAH
3rd
St
NE
Way
120th Ave
124th Ave NE
Nup
202 Main St Main St Main St SE
143rd Ave SE
116th Ave SE
1s
tS
t
NORTH BEND 212
SOUTH KING 128
SEE PAGE 36
2021 APARTMENT MARKET STUDY SIMON | ANDERSON TEAM 35KING COUNT Y
EXISTING APARTMENT INVENTORY: 43,837 UNITS
Construction Approved In Review Total Pipeline Microhousing Pipeline APARTMENT
South King 926 1,992 3,436 6,354 37 MICROHOUSING*
2% 5% 8% 14% of inventory 0.08% of inventory MIXED*
*DEFINITIONS FOR “MICROHOUSING” & “MIXED” DEVELOPMENTS AVAILABLE ON PAGE 64
Renton’s rise as a top-tier
suburban market carries
South King’s development
pipeline. 179 600
313 31
112 226
108 EAST KING
SEE PAGE 35
23
509
TUKWILA 20
210 24
750
RENTON
South King County experienced an 117
30
270
expansion of its development pipeline BURIEN 220
610
by almost 30% year-over-year. Extremely 169
robust rental demand is, coupled with
little competition from a tepid pipeline 78
of new development. We are continuing SEATAC
to see rapid growth in apartment market 167
109
fundamentals in what our team calls the
“Fertile Crescent”. DES
MOINES
Renton, backed with The Landing, Boeing,
and a strong industrial market, recently MAPLE
285 KENT VALLEY
boomed. From a total of 820 units in 186
Renton’s pipeline last year to 2,372 units 157
this year, the city with connections directly
to Seattle and the Eastside contains almost 1,500
PUGET
40% of the entire South King Counties
SOUND COVINGTON 516
pipeline.
Other south end suburban markets many 18
not be far behind in establishing their FEDERAL
WAY
own development pipelines as apartment
35
developers look southward for suburban AUBURN
development opportunities. 176
166
36 SIMON | ANDERSON TEAM 2021 APARTMENT MARKET STUDY2021 APARTMENT MARKET STUDY SIMON | ANDERSON TEAM 37
04
SNOHOMISH
COUNTY
DEVELOPMENT OVERVIEWSNOHOMISH
COUNTY
This past year was unfortunately one to remember. With our world
working to deal with the ramifications of COVID, businesses all
across the Puget Sound closed their doors. Working from home
didn’t become just an option it became the only option. This meant
people were now looking for larger apartments at a more affordable
price. Many people moved from Seattle and Bellevue into areas like
Lynnwood, Everett, Edmonds, Mountlake Terrace and Snohomish.
ARLINGTON’S TIME TO SHINE
We don’t talk much about Arlington but the news of Amazon’s
new $355M distribution center being built has many apartment
developers and investors looking closer at the city and surrounding
area for opportunities. Once opened, the distribution center will
initially provide over 1,000 jobs. With the news breaking as recently
as April of this year, it will take time for the market to react, yet keep
a close eye on Arlington and it’s neighboring cities like as Marysville
and Lake Stevens for development projects in coming years.
40 SIMON | ANDERSON TEAM 2021 APARTMENT MARKET STUDYSNOHOMISH COUNT Y
39,863 7,087
TOTAL INVENTORY TOTAL PIPELINE
2021 APARTMENT MARKET STUDY SIMON | ANDERSON TEAM 41SNOHOMISH COUNT Y
SNOHOMISH
DEVELOPMENT
OVERVIEW
NORTH SNOHOMISH
In years past, Snohomish County’s development
pipeline hasn’t gained steam quite as quickly as its
neighboring counties. However, over this past year SOUTH SNOHOMISH
its development pipeline expanded by nearly 20%.
Identifying trends with new developments is quite
easy, simply follow the light rail line. A combination of
light rail accessibility, work-from-home opportunities,
and Amazon’s newest footprint all provide for a bright
future for Snohomish County for years to come. KING
Snohomish Development Pipeline
UNDER CONSTRUCTION: 1,997 UNITS | 5% OF TOTAL INVENTORY
PLANS APPROVED: 460 UNITS | 1% OF TOTAL INVENTORY
IN REVIEW: 4,630 UNITS | 12% OF TOTAL INVENTORY
TOTAL INVENTORY: 39,863 UNITS
42 SIMON | ANDERSON TEAM 2021 APARTMENT MARKET STUDYSNOHOMISH COUNT Y
Snohomish Historical Deliveries & Construction Pipeline by City
INVENTORY AS OF YEAR-END 2009 INVENTORY GROWTH: 2010 – 2020 UNDER CONSTRUCTION
INCREASE OVER
Arlington 428 Units 665 Units 155% 2010 INVENTORY 0 Units
Bothell 2,819 Units 869 Units 31% 0 Units
INCREASE OVER
Edmonds 2,315 Units 231 Units 10% 192 Units 8% EOY 2020 INVENTORY
Everett 13,985 Units 1,007 Units 7% 601 Units 4%
Lake Stevens 158 Units 0 Units 195 Units 123%
Lynnwood 7,042 Units 1,383 Units 20% 690 Units 8%
Marysville 799 Units 682 Units 85% 0 Units
Mill Creek 2,121 Units 180 Units 8% 0 Units
Mountlake Terrace 1,861 Units 274 Units 15% 319 Units 15%
Monroe 532 Units 0 Units 0 Units
Snohomish 173 Units 0 Units 0 Units
Stanwood 241 Units 48 Units 20% 0 Units
Note: Pipeline only includes # of units currently under construction. Projects that are “Approved” or “In Review” are not included in this chart.
Cities not included in this chart saw no deliveries 2010 – 2020 and/or have no units currently under construction.
Source: CoStar
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