Tri-Cities Market Update: February 2021
While February was a short month there was no shortage of activity, particularly in the multifamily space. New developments launched, deals crossed the finish line, and there is even more in the pipeline for the rest of the year to come.
Keep reading for more on what is happening in the Tri-Cities market.
- Words of wisdom from a lender I spoke with this week: "It's not what it costs you to get in, it's what it costs you to get out". Keep this in mind as rates begin to fluctuate.
- While selling multiple properties this month, I've found that many owners don't realize how much dead equity they have built up, meaning they're leaving cash on the table every month. I help property owners capitalize on that equity and defer capital gains so that they achieve a better bottom line. Interested in learning more about the options available to you today? Give me a call.
- Off-Market: 30 Acres of undeveloped land, zoned residential, in Benton County. Email me for details.
- Sourced an off-market 5-unit multifamily property for an investor client. Under contract below market rate with creative options due to existing zoning and land available.
- Listed two 4plex's this month. Received a combined 9 offers and are under due diligence above asking price on both. It is certainly a sellers’ market.
- Interested in learning what your property is worth in today’s market? Values change every month, stay in the know. Email me today for a free property valuation.
- I recently listed two 4plexes and saw firsthand how hot the market is. We received 5 offers within 36 hours on one property, and 4 offers within 12 hours on the other. We are under contract above asking price on both and are executing feasibility. Want to capture on this hot market and sell your property? Call me today.
- There were a high number of closings across WA this month. I think a lot of deals that were in the works for the last 6 months finally made it to the closing table. With extended due diligence periods, delayed financing, and tenant challenges, deals that started back in summer 2020 are officially transferring hands.
- For a great overview of the state of construction in Tri-Cities, check out this article from Wendy at the Journal of Business. She captures activity and sentiment well in this piece.
- For a look at national development trends, check out this report from CBRE. What stood out to me? "Higher construction costs are not impeding new development." This ties into Wendy's article above, which shows significant project growth and no slowdown in the residential and multifamily sectors.
- The multifamily development pipeline continues to grow. It feels like once a week I hear about a new project coming online. Want the latest? Reach out and we can talk through the project pipeline and identify opportunities for acquisition or development.
- Finding entitled dirt is the biggest barrier to additional units filling the pipeline, but there are opportunities out there. I am working on a few parcels right now. Email me if you're looking for multifamily dirt and we can discuss your project requirements.
- The market remains tight, with little new inventory, and minimal space available for lease. Looking to lease new space? Start your search 9-18 months ahead of time so you are well-suited to find space that fits your needs. Sometimes your best option will be to find a developer who can build you new space.
- This LinkedIn post by an industrial broker in California sums up the state of the industrial market.
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Questions on any of the above? Have a new project you want to kick-off? Shoot me an email or give me a call.