Seattle is a rapidly growing community that has been attracting a great deal of attention from investors. However, every market is different, so it’s important to seek help from industry experts when looking at commercial real estate for sale in Seattle.
Teletare’s team of experienced brokers know this city inside and out. We’ve been helping investors find commercial real estate in the area for years and will work with you to identify the right properties for your portfolio.
Here’s some key information to consider when performing your Seattle commercial real estate search.
Seattle offers a wide variety of commercial buildings to purchase and invest in. And with new developments sprouted up all the time, there are always plenty of properties to choose from.
Some of the property types available include:
Seattle is home to a diverse population and a growing economy, making it ideal for commercial real estate investment. Here are a few things to know about Seattle:
The Seattle economy has been consistently growing over the last 10 years. The area has seen explosive job growth, thanks in large part to the tech boom that the city has experienced. Experts also predict the local tech industry will continue to grow, which bodes well for the economy. On top of this, the local government is anticipating adding 115,000 new jobs and 70,000 new housing units by 2035.
Demand for commercial real estate in Seattle often outweighs the supply, which can cause prices to be on the higher side. For example, a recent study concluded that Seattle’s Lake Union neighborhood is the eighth-most expensive office submarket in the nation.
That being said, commercial properties average an annual return of 6% – 12%. When you combine this with the high level of demand for Seattle commercial real estate, the return on investment for these properties is expected to be quite good.
Interest rates constantly rise and fall, depending on a number of factors including inflation, bond supply, bond demand, and the Federal Reserve.
When interest rates fall it’s an attractive time to buy. By lowering your rate on the property you’ll also increase the cash flows generated from your investment. The opposite is true of higher rates, as they will cut into any revenue created by the property. So, when rates are higher you also need to demand a better return from your investment.
With rates predicted to continue to rise over time though, there’s never really a bad time to invest in real estate. On average, the sooner you invest the better rates you’ll enjoy.
Before purchasing a commercial property, it’s important to familiarize yourself with the local rules and regulations, as they’ll often affect your investment moving forward. Like every other area, Seattle has its own set of regulations, many of which are beneficial to investors and landlords.
To start, Seattle does not have any rent control, meaning you can increase rates as you see fit. The only stipulation is that tenants must be given 60 days notice of any increases. Tenants must also receive 30 days notice of any other changes to their lease.
Are you interested in investing in commercial real estate in Seattle, Washington? Reach out to our experienced brokers to learn more.