This Quarterly Report has been sounding the same for 7 years now…
For those waiting for the Seattle economy to crash because traditional economic cycles say so, sorry, you are going to have to wait another quarter!
The Puget Sound fundamentals are strong. Established tech companies “not” called Amazon continue to move and grow in our region, making our cities success more diversified and sustainable.
Review these major leases from this past quarter:
· Amazon – 715,000 Feet – Downtown Bellevue
· Apple – 615,000 Feet – South Lake Union
· Dropbox – 120,000 Feet – Downtown Seattle
This short list represents around 5,000 NEW jobs in the Region… This just from the past quarter! These jobs pay high salaries, offer stock options and employee highly educated people.
Any thoughts toward a near term slow down (pending a black swan event) are difficult to accept, for now… Even if we see a National slump, this Puget Sound economy may be too strong to feel much of the disruption.
What has changed?
Seven years of review of my previous articles, shows the same rental increases, same big leases and same projections that our market will continue to flourish. I have been correct thus far. I believe next quarter should be an easy one to win again.
What is different this time?
The positive news used to give me pure joy. We were turning into a “big time” city, recovering from a disastrous economic crash into a city with massive job openings and local business success.
Today, the growth makes me nervous and discouraged for the thousands of company owners, employees, clients and friends who are on the verge of being priced out of a city they grew up loving. Beyond the office space, we have an entire generation that cannot, and may never be able to, afford a home within an hour’s drive of their office.
Are we becoming San Francisco? Are we already?
My Advice:
Seattle has advanced and so must we. How we treat, pay and operate our businesses must change. Sure, many are frustrated but that gets us nowhere. Let’s buckle up, solider on, and create great things in this new and great Puget Sound Region together!
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