Page 16 - Venture - State of the Market 2019

2019 MARKET How has your business
been impacted by the real
estate market in 2018, and
SURVEY REPORT what do you foresee for
your business in 2019?

We have had to reach out to smaller MSA
markets that the investment funds are
not charted to invest to find yield - our apart-
Whether you are a real estate developer, builder, land baron, loan officer, architect, investor, seller, ment company being private, can
take advantage of these opportunities - low-
buyer, or anything in between, it’s important to know what you’re getting yourself into when on the What is your opinion on er cap rates and higher construction
lookout for property to invest in. We asked 100 of the top leading real estate experts in the greater the current economy as a costs have caused prices and returns in
Seattle area with varying backgrounds--from property managers, to architects, to engineers and real whole? core West Coast markets to be less
estate developers--to give their take on the current real estate market, as well as a few tips on how to attractive - seem too thin, especially with all
in interest rates being higher.
navigate what’s to come in the future. These are some of their answers.
The economy as a whole is still doing pretty
well - however, am starting to see signs of 2018 was a slower year for the real estate
market. But things have already picked up in
What is your opinion on the cracks in the dam forming- which is being 2019 with more purchases. We see this year
caused by excessive corporate, student, and
current real estate market as personal debt levels. as being a strong one.
a whole?
The corporate debt levels are going to start Stronger then ever, or at least 2008…
The residential market seems to have causing layoffs and reduced growth - the The strength of the real estate market in
dipped some this winter as inventory levels student debt will be good for apartment 2018 resulted in strong revenue growth
increased- however, I am hopeful to see a owners as they won’t be able to qualify/ for our business. New hires often from other
rebound this spring afford mortgages, personal spending will states as the volume of development activity
slow- further impacting corporate profits as has exceeded the number of engineers
I believe the shift to a buyer’s market is in consumers start feeling impact of the higher and designers in our area. We anticipate
full swing. People will be able to get more credit cards sustained activity in 2019 at levels similar to
for their money this summer and into 2020 payments (caused by higher balances/rates). 2018.
(Great news!)
The economy is booming. Jobs are being Positively! Due to lending opportunities.
As a whole, the real estate market appears filled and the markets are steady. We may
to be very strong. Our firm is as busy as its see a recession in the next couple of years Business has been booming. I am refinanc-
ever been assisting owners and developers but that is normal after so much growth. ing a number of my properties will have
plan, entitle, design and permit for money on the sideline for opportunities in
construction new and/or redevelopment While volatile, the current economy is 2019 and 2020. (Developer who owns about
uses. (Architect) strong. Regionally, it appears to be stronger 400 units)
than the national average. The job growth in
Some softening in rents, but think it may the Puget Sound region is quite remarkable. Slowdown in the apt rental market, with over
be seasonal. Overall I think we’re going to supply in new units. I see flat to
flatten out in 2019, 2020. (Multifamily) Economy is doing good. Unemployment is slightly down rents for 2019.
low, interest rates are steady at this point,
With apartment prices remaining as they People are buying home still and new buy- Tightening lending has slowed down devel-
are… very high… I think the apartment ers are coming into the market. opment and I predict this will continue
market is topped out for 2-3 years. into 2019.
Struggling to maintain 2-3% GDP growth.
After a long period of expansion the market
Has plateaued. Economy remains strong.

Optimistic for growth and income. Pessimis- Strong.
tic about Seattle’s radical city council,
utility and property tax increases.
14 VENTURE | 2019 STATE OF THE MARKET VENTURE | 2019 STATE OF THE MARKET 15