Seattle Housing Buzz

It seems Seattle’s corporate image is getting a little tarnished. First, the city lost the headquarters of the area’s largest company, Boeing. Now, another major employer is expected to start packing (eventually), as Safeco shareholders voted to sell the company to Boston-based Liberty Mutual (I voted for the sale).

No doubt Safeco will remain around for a bit, but with insurance company acquisitions, most of the “home office” operations in downtown Seattle will be absorbed by the Liberty Mutual’s East coast operations. At best, Seattle will remain a regional office. Having worked for insurance companies prior to real estate I’ve been through or have witnessed from both sides the effects of several acquisitions. It’s safe to say Seattle will lose virtually all the company’s high-paying, intelligent jobs.

I suspect Starbucks will survive its current turmoil - the loss of 180 jobs at its SODO Center headquarters and closure of 600 stores. Now we hear, courtesy of the Daily Journal of Commerce, that Starbucks is selling two of its properties in Pioneer Square, including the new office building currently under construction on First Avenue.

The city’s other major employer, WaMu, is on shaky grounds as well. There seems to be no shortage of speculation about how long WaMu can survive as an independent company. And, they’re going through significant staffing reductions, too.

Seattle has lost two of its biggest companies in Boeing and Safeco while two others are fighting for survival. It seems the city’s once bright star is dimming. And, unfortunately, selfishly for me, this gut punch to the Emerald city’s psyche may impact the region’s economic and housing recovery.

The Downtown Seattle Association hosted its annual State of Downtown event last week providing an overview of downtown commerce, development and livability issues. Downtown housing highlights include:

• Approximately 13% of Seattle’s housing units, or 37,320 units, are located in the downtown area.
• The number of residents increased nominally to 54,773 people. However, the number of children living downtown increased to 2,814, about 100 more than reported for the prior year.
• 16% of downtown units are owner occupied, 84% are rentals, unchanged from the prior year.
• Since 1990, population grew by 61.1% compared to 12.7% for Seattle as a whole.
• The average household income rose to 3.5% to $53,294 with a per capita income of $34,472.
• 39% of residents over 25 years of age hold a bachelors degree.
• Interestingly, there was a drop in the number of residents under 35 years of age, from 41% to 39% of all downtown residents. The average age is 43 years.
• There are approximately 5,700 new residential units currently under construction or permitted.
• Subsidized housing makes up 26% of all housing units in the downtown area.

Other downtown tidbits:

• The number of coffee shops increased 2.9% in the past year to 207.
• 231,532 employees, or 49.2% of all employees in Seattle, work in downtown, down slightly from the prior year.
• 44.4% of Puget Sound’s office market is located downtown.
• Over $1.1 billion in development projects were completed in 2007, up 44% from the prior year. Another $3 billion worth are currently under construction.
• The amount of open space and parks expanded by 38% from 42 acres to 58 acres.
• DSA reports that the number of tourists, entertainment seekers, conventioneers and sporting event attendees stood at over 18 million people.
• 190 cruise ship vessel calls comprising over 781,000 boardings were experienced in 2007. The cruise ship industry generated $268 million in revenue and contributed $6.7 million in local & state taxes.

Tags: Downtown Seattle, Seattle

The American Planning Association (APA) released its 10 Great Streets and 10 Great Neighborhoods list. Among among the contenders the Pike Place Market district was selected as one of the 10 Great Neighborhoods in America.

The Pike Place Market neighborhood continues to lead by example. Its compact, pedestrian-oriented design and range of housing options served as the inspiration for the city’s Downtown Livability Plan, passed in 2006. Despite ongoing financial and other challenges, its community continues to fight to sustain its viability. It serves as a reminder that it is not just a mix of buildings that define a place but, rather, the mix of people that infuses a neighborhood with a distinct voice and personality of its own.

Read the full APA review of the Pike Place Market

Tags: Pike Place Market, Seattle

Ok, not really a showdown but a significant homeowners association vote is coming up on July 17th, whether or not to extend concierge services 24 hours. Extending concierge to 24 hours can add more than $100 per month to owner’s monthly dues which are currently around $.55/square foot, about average for the services at a downtown area complex.

Some owners are not particularly happy, though, with the high additional expense for 24 hour concierge, especially since the board recently passed a non-refundable $1000 move-in/move-out fee.

Update: The increase will be approximately 10% above current dues. In addition to the 24 hour concierge, it will also provide for expanded janitorial services and facilities technician.

Tags: Vulcan

The Seattle PI posted an article today about the lack of family-friendly living in the downtown core. Parents cite lack of larger units, developers cite lack of schools and schools cite lack of demand; an unenviable catch-22. Yet, I’m not sure there is an easy solution.

Certainly, bringing schools to the area will provide a foundation for families to consider urban living. But, should the city invest into a new school that currently would have very little demand, especially at a time when other schools are closing? Will building larger units, as some parents claim, bring them to the downtown area? Considering that 2-bedroom units at Rollin Street Flats & Escala start at $800,000, it reasons that only uber-wealthy families could afford a 3-bedroom “family-sized” condo. And, would children who live in million-dollar condos attend public rather than private schools?

The PI had an accompanying article about how downtown family living works in Vancouver, BC. The article cited downtown schools and the fact that many of those families came from areas where high-rise family living is common and that’s why it works. Which may certainly be true. But, Vancouver’s downtown area, and I’m talking about the West End (between the financial district & Stanley Park), is essentially residential with a mixture of low and high-rise residential buildings, single-family homes, parks, schools and quiet tree-lined streets. Families lived in this part of downtown long before the explosion of high-rises along False Creek and Burrard Inlet.

The fact of the matter is Seattle isn’t Vancouver and never will be. Plus, Vancouver has something Seattle doesn’t, a long-established downtown residential neighborhood with infrastructure and community services to support it. Rather than compare ourselves to Vancouver, Seattle (the city) needs to look inward to determine if the downtown area can truly support urban family living for all classes. And, if so, the city needs to develop solutions rather than rely on developers or the wait endlessly before the demographics change.

From the city’s DPD land use bulletin that could be potential condominium projects:

Market District

Supplemental Design Review Board Meeting set for 120 Pike Street for a 23-story building including 18 floors of residential units. This is located on the NE corner of 2nd Avenue, right next to the Liberty Jewelry. If memory serves, there used to be a teriyaki place on the ground level.

Lower Queen Anne / Denny

Design Review Board Meeting set for 600 Denny way for a hotel/residential building - 150 room hotel, 56 residential units. From the map, this looks to be the Greg’s Japanese Auto lot. Update: the hotel will be a Hyatt Place Hotel and will be developed by Kauri Investments and Ariel Development. The residential units are condos.
Ballard

Design Review Board Supplemental Meeting set for 1545 NW Market for a 230 unit residential building (south of Market at 17th Avenue NW, across the street from Hjarta).

Urban Visions, the company behind the proposed 30+ story 2nd & Pike condominium high-rise (not to be confused with 1521 or 2nd & Pine), purchased the Liberty Jewelry & Loan pawnshop building on Pike Street between 1st Avenue & 2nd Avenue.

The parcel is on the same block, just south of the 1521 project. Urban Visions plans to redevelop the property as another condo project, making it the 4th new condo building in a 3 block stretch of 2nd Avenue.

An article in CNNMoney.com describes what we’re seeing in Seattle, people moving back to the city core after decades of migration to the suburbs.

Young professionals make up a big part of the trend. “It’s carefree living,” says Caparo. “Young professionals just want to put the key in the door and go to bed at night and lock it up again in the morning.” It’s also where the action is, professionally and socially. “For them, there’s lots of DNA to hook up with,” says McIlwain.

Retirees love the museums, restaurants and, most important, access to the best health care. Empty nesters get to live near work.

“For years people traded a commute for affordable housing,” says Jim Gillespie, CEO of Coldwell Banker. The further out in the suburbs, the more affordable the homes. But as suburbs expanded and got more crowded, road construction did not, could not, keep up. Congestion grew worse.

Of course this movement bodes well for Seattle’s exploding condominium renaissance. Fueled partially by the Growth Management Act, rising commute times and fuel costs, and lifesytle choices, urban centers are both practical and necessary to accomodate long-term growth.

And, I may become part of the statistic. Three years ago I left the city core to purchase an affordable home in North Seattle. From my apartment on Capitol Hill I lived a very pedestrian lifestyle - walking to the grocery store, movie theaters, restaurants, bars, Pacific Place and to the Pike Place Market every weekend to buy fresh fruits and vegetables. It was the epitome of urban lifestyle.

Now, I drive everywhere.

So I’ve been thinking about cashing out my nearly 40% appreciation and moving back to the city core and becoming pedestrian, again. Guess I’ll pull out my rabbit’s foot because I’ll need luck to get one of Vulcan’s lottery spots.