Construction Cranes Dotting the Pacific Northwest Skylines
July 17, 2017
SVN Imbrie Realty Staff
Currently the Pacific Northwest is experiencing a construction boom that the region has never seen before. Between the two major cities of Seattle and Portland, there are 85 Cranes dotting the skylines. The City of Portland has issued roughly 12,000 building permits in the current fiscal year. The record number of permits accounts for 2.5 billion dollars in new projects.
Despite the fury of planned projects, multi-family sector is showing signs of slowing down. This is particularly true for the class-A type. Many high-end apartments are offering incentives to renters.
The newly built Goat Blocks Apartments located in Portland's inner eastside has leased 104 of the 247 units in five months. With rents for a one-bedroom one bath unit at the Goat Blocks going for around $1,600 per month, the developer Killian Pacific is struggling to fill the high-end complex and recently began offering one month's free rent to lure tenants.
In its spring survey of its members, apartment industry association Multifamily NW found that the Portland area's average rent is now $1,116 for a one-bedroom apartment. According Axiometrics, Portland-area rents have increased nearly 60 percent since 2010. With rent increases outpacing wage growth, it remains to be seen how much longer the construction party can continue.