New year, new supply, new tenants
I wonder if all the great tenants are now going to the new buildings. It seems to me that the new stuff is renting up at such a quick pace and at such nice rents that any new tenant with a good job doesn’t even look at an older building anymore. I think there is a big shift in tenant profile and that it ends up with better restaurants, better services, better retail, all competing for the remaining money left after rent. Driving around Ballard, West Seattle, Capitol Hill, and even Interbay, I see lots of change and a lot of renewal and upgrading of entire neighborhoods. There is nothing like new paint to inspire the neighbors.
I recently heard a developer addressing a large group say that he does worry that the new tenants in the new places can move pretty easily since the apartments are so small it is impossible for them to accumulate much. I thought that comment may have more import than intended.
It will be an interesting year for sure.