Posted by: phillipsre | April 10, 2014

Amazon Shifts Downtown Seattle Rental Market

Amazon's Greenhous Biodome  Photo Credit: Huffington Post UK

Amazon’s Greenhous Biodome
Photo Credit: Huffington Post UK

A recent article written by Joseph Sollazzo, Real Estate Economist with CoStar Group describes the impact that Amazon is having on Downtown Seattle’s rental market. The demographics are changing, young professionals are driving this change. As the article states, the downtown population aged 25-44 has grown four times faster (28%) than the metro average. With the estimated local workforce of 18,000 and potential to expand by an additional 22,000 over the next five years, these changes will easily change the expansion of the real estate market. Additionally, the salaries are also going up, which means the higher end units will continue be developed. A historical metro wide ratio of one unit of apartment absorption per five jobs added is more likely to fall around 1:3, meaning Amazon could single-handedly generate 7,600 units’ worth of demand for new units. The next big expansion for Amazon will also be the development of the the company’s  three giant ‘biodome’ greenhouses which will become the new Amazon Headquarters in the middle of downtown Seattle. A lot of changes are coming for Seattle, be prepared for more growth and density and also more job opportunities and available rentals.

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