No matter what type of commercial real estate you’re looking for in King County, Teletare’s team of experienced and knowledgeable brokers can help guide you through the process. And with over 200 commercial properties regularly listed on our website, searching for your ideal property is quick and easy.
To help inform investors on the King County real estate market, we’ve gathered some key information that should provide some useful insights.
According to the United States Census Bureau, King County’s population was estimated at 2,233,163 in their 2018 census. This was an increase of 15.6% from their 2010 census. It is the largest county in Washington State and the 12th largest in the United States.
As one of the largest and fastest-growing counties in the US, this makes King County an attractive market for commercial real estate investors.
Below are some quick statistics on the demographic make-up of King County.
Here are some additional insights on the population, courtesy of ESRI.
According to King County’s official website, the median household income is $95,009. This is a massive increase from the $53,157 median income recorded in 2000. It is also significantly higher than the national average of $59,039 reported by the United States Census Bureau. In addition, average annual wages for the county increased by 76% from 2005 to 2018.
A steady rise in income bodes well for commercial real estate in King County, as demand for these properties should continue to increase as the population has more disposable income.
The unemployment rate in King County is currently 3.5%. This number continues to decrease as more and more jobs become available to residents.
As with rising income, declining unemployment rates are only a good thing for the commercial real estate market. Strong employment levels consistently correlate with a strong property market, which is good news for investors.
The current residential housing market is strong, according to a recent report from the Madrona Group. Here are a few key statistics that tell the story:
While the King County commercial real estate and residential real estate markets are their own entities, they’re also somewhat interconnected. A strong number of home sales is an indication that the local economy is thriving, which bodes well for commercial property investors.
Capitalization (CAP) rates remain strong in King County. For instance, according to Apartment Loan Store CAP rates for Seattle multifamily apartment buildings currently range from 4.6 for newer metro luxury properties to 6.4 for value-added acquisitions. And King County reported in 2017 that CAP rates for hotel and motel properties ranged from 6.25% all the way up to 9%, while office CAP rates start at 4.25 for class AA properties and can be as high as 9.25% for class C properties.
For reference, we recommend targeting properties with a CAP rate of over 4.
Are you interested in investing in commercial real estate in King County? Our team is here to help you find the right property to add to your portfolio.