We all know sector rotations are common in real estate markets. Regardless of Seattle commercial real estate cycles a “good deal is a good deal”. Revenue growth is what every investor looks for in commercial real estate. Incremental yearly growth of 2-3% is national average and normal in most Seattle lease agreements. An investor should expect 2-3% increases in expenses depending on quality of management and building construction.

A good deal is a good deal in any market.

Now lets look at the industrial sub-sector where Seattle yearly revenue growth has peaked 9% in 2016. Top graph below displays Seattle overall industrial growth and the chart below displays N. Seattle retail growth in price per square foot.

 

Data-Driven Investments

NOTICE SIMILARITY BETWEEN INDUSTRIAL & RETAIL GROWTH/SALES

 

2016 Peak Graph

INDUSTRIAL PEAKED IN 2016 and RETAIL PEAKED IN 2017

Rare opportunity to observe growth between retail and industrial sub-markets. Interesting to note industrial in Seattle peaked one year earlier than retail. Analytics is not the only approach to finding a good deal, but it certainly helps to know the numbers.

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Victory Lane Brokerage can execute a wide range of value-added/opportunistic investment strategies in the greater Seattle, Eastside and I-5 corridor areas.  Schedule an appointment to discuss your next venture at viccipe@gmail.com Р(206) 245-0159