As we enjoy this late summer return to 80F weather, we can also bask in some pivotal updates in the PNW apartment market. The uptick in pricing velocity I’ve voiced the last few months is manifesting in sub-5% cap sales.
We are seeing distinct changes in: tour traffic, underwriting leaning into rent growth, a boost in competitiveness among offers, and increased BOV traffic driven by prescient owners.
Don’t get caught flat-footed as the market returns.
Key Highlights:
- Goldman Sachs Acquisition: A notable high-rise purchase in Southlake Union at a steep discount to replacement cost, signaling a pivotal market shift.
- Sky Sammamish Sale: Off-market transaction showcasing significant cap rate compression.
- Metro on 1st Listing: A prime asset generating immense interest—expect fierce competition (call for crib notes).
This month I had the honor of keynoting at the Washington Multi-Family Housing Association 2025 Outlook breakfast. If you’d like to receive our presentation slides, just let me know.
As we look ahead to 2025, now is the time to assess your property’s value and position yourself for the rising market tide.
Dylan
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