About Commercial Real Estate in Washington State

There is a wide array of commercial real estate in Washington State available to investors, and Teletare’s team of experienced brokers can help you find the perfect property to add to your portfolio. We regularly have over 200 commercial lots listed on our website, making it easy to find a property that suits your needs.

To help inform investors on the Washington State commercial real estate market, we’ve gathered some key information that should provide some useful insights.

Economic Outlook

Washington’s economy continues to be extremely strong, with WalletHub recently ranking the state’s economy as the best in the country. According to the study, here’s how Washington ranked in some key areas:

• 1st in GDP growth
• T-1 in exports per capita
• 5th in change in nonfarm payrolls
• 4th in percentage of jobs in high-tech industries
• T-1 in independent inventor patents

So, what can we expect from the economy moving forward? Washington State’s most recent economic forecast predicts steady growth over the next five years, including:

• 19% increase in real personal income
• 28% increase in disposable personal income
• 8% increase in nonfarm employment

Overall, investing in commercial real estate in Washington State is a smart move. The state is home to large companies such as Amazon and Microsoft, and the tech industry here is expected to continue to grow. These high-paying jobs should continue to fuel the economy which bodes well for the commercial real estate market.

Interest Rates

At the time of this writing (March 2020), Washington commercial loans are starting at 3.34%.

At the end of 2019, the Fed indicated that no major changes are expected for interest rates over the next year, so we can expect rates to remain low for the time being. This makes it an opportune time to invest in commercial real estate.

Investor Activity

As you can expect, there has been plenty of investor activity in Washington State of late. Seattle continues to be a hotspot for activity, with a Dallas-area company currently planning an 11-story hotel near the Space Needle and a San Francisco Development Company acquiring a Seattle property near Stone Way being the most recent news.

The area has also become extremely popular among foreign investors, with billions being poured into commercial real estate over the last few years from China and other countries.

Rules and Regulations Concerning Commercial Real Estate in Washington State

Before purchasing a property in a market, you’ll need to be aware of any rules and regulations that might impact your investments. Here are some key facts about Washington State:

• There is currently no rent control, meaning property owners can raise lease rates as much as they want.
• Tenants must be given 60 days’ notice of lease increases.
• Tenants must be given 30 days’ notice of any changes involving the terms of their tenancy.
• As of the time of this writing, Washington State has an average property tax rate of 1.03%, slightly below the national average of 1.08%.

With few regulations surrounding commercial leases, and lower tax rates, Washington State remains one of the top candidates for commercial real estate investment in the US.

Find Commercial Real Estate in Washington State

Are you interested in investing in commercial real estate in Washington State? Our experienced brokers are available to assist you with any questions you might have.