Industrial sector hot in Seattle

Warehouse space is in demand in Seattle.

Apartment properties are no longer the king of the commercial real estate in one of the Pacific Northwest's biggest markets.

According to the Puget Sound Business Journal, that title now belongs to the industrial sector in the Seattle area.

Tony Miltenberger, a broker with commercial real estate company Kidder Mathews, told the Business Journal that for every industrial building available for purchase, there are three or four buyers. That was not the case at all just two years ago when the industrial market was first starting to regain traction.

"It's just amazing," Miltenberger said. "Our market definitely changed, and it's still changing and still getting better."

Miltenberger added that buyers are "really trying to find stuff that is not currently being marketed for sale because there's so much competition."

According to the Urban Land Institute's Emerging Trends in Real Estate annual report, Seattle placed sixth for the strongest real estate market in the nation.

With apartment developments projected to decline greatly from 2013 to 2014, apartment investment prospects are also likely to fall, according to the Business Journal, which has pushed the industrial market over the apartment sector as the region's best type of commercial property.

Fifty-eight percent of respondents from the Puget Sound region surveyed by the Urban Land Institute recommended buying industrial properties. Just 8 percent said owners should sell and the remaining 34 percent said to hold off before making a decision, meaning the majority of those polled expect the industrial sector to surge.

The apartment-to-industrial trend has also been fueled by all the recently built multifamily units in the area, and more are under construction, according to the Business Journal.

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