The past several weeks marked one of the most active periods for institutional capital in the Puget Sound apartment market in years. Nearly $825 million in capital committed across major apartment transactions in Seattle, Mercer Island, Lynnwood, and Issaquah.

The Puget Sound Business Journal called for our take on what’s driving the surge in activity. The answer connects directly to the supply-and-demand story we’ve tracked all year: vacancy fell to 6.7%, new deliveries are down 53% from last year, and renter demand outpaced new supply by more than 2,200 units so far this year.

With office leasing gaining momentum, inbound tech leasing picking up, and the development pipeline continuing to shrink, institutional buyers are positioning ahead of the rent growth they believe is coming next.

Watch the full update to see who’s buying, what they’re paying, and what this wave of institutional investment signals for the Puget Sound apartment market.