Seattle Housing Buzz

As I was writing my newest condo review post on my condo blog, it struck me that I had more to say about the condo / hotel projects planned or under construction in Seattle. So much so, my mind started to rant and I thought it best to let it out on this blog rather than on Seattle Condos and Lofts.

In writing my the post for AVA - a 38-story condo/hotel project, I had counted eight new condo/hotel projects in the downtown core. These include the newly opened Madison Tower (Hotel 1000) and the 2200 (Pan Pacific), those under construction - Olive8 (Grand Hyatt) and Four Seasons, and those on the drawing board - 2nd & Pike, 600 Denny (Hyatt Place), 1 Hotel and AVA (Executive).

The question is, has Seattle reached a saturation point with increased hotel rooms through hotel expansion (e.g. the Sheraton) as well as the addition of at least 8 condo/hotels? In a recent article in the Puget Sound Business Journal, Brett Matteson of Columbia Hospitality stated Seattle’s condo/hotel market is at the point of “saturation”. And, one of the developers interviewed is moving ahead “cautiously”. Neither of which sound very positive to me.

In numerous articles developers state that for success and survival they’ll need to differentiate themselves from one another. But, they’re not. This is Seattle not NYC or even Orlando with its mega-themed resorts. Is there really a difference between the Grand Hyatt, Sheraton, W and Four Seasons besides the price tag? Valet, room service, business center, free wi-fi, restaurants, bars, spas…same amenities just packaged differently. How much does a business traveler or tourist need in parka-wearing Seattle?

The Residences at the Four Seasons has the edge. It’s the Four Seasons afterall, with its $2,000/sq ft condo price tag (smallest unit is 1,000 sq ft). The 1 Hotel project is now officially “1 Hotel & Residences” and AVA’s jumped on the bandwagon with its homes being referred to as “The Residences” and “The Estates”. That’s differentiating?

There may be one other exception. Apparently, Ivanka Trump was in Seattle surveying the city for the newest (er, gaudiest) Trump hotel & condo combo.

The other thing about these condotels is their prices essentially all start at the same price point - around $500,000 for a low-level one-bedroom unit with views of the building across the alley. Two-bedrooms start around $800,000.

I agree with experts who state that with Seattle’s stable economy and future growth potential, the market can absorb the number of new units expected in the next 3-5 years. I disagree, though, once the cost of those units are added to the equation. There is some serious overestimation about the income level and purchasing power of Emerald City denizens. I’m not fortune teller, but my magic eight ball is telling … drats, “reply hazy, try again”.