A hotel under construction in Downtown Seattle. Image Credit: SounderBruce (CC by SA-2.0)
According to a recent report from the Downtown Seattle Association, the summer of 2018 saw a rise in number of Central Seattle construction projects, with 65 active developments compared to the 57 seen last winter. Though this number is above the historical average, it falls short of the peak construction seen in the summer of 2017, which reached a record high of 74 developments. During that year, Seattle accounted for 20% of completed office projects in the US. The area observed stretches from South Lake Union to Sodo.
Much of Seattle’s construction boom can be attributed to Amazon, which occupies one-fifth of Class A office space in the city. Other tech companies such as Google, Facebook, and F5 are expanding their Seattle presence as well. However, most of the new downtown construction projects are for housing these tech workers. Currently about 60% of construction projects underway in the greater downtown area are for residential apartments, causing rents to flat-line in the last year. Hotels are also seeing peak growth in the area.
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