Clouds on the horizonThursday, December 22nd, 2016
It’s always difficult to tell how much seasonality impacts leasing activity during the winter months. It’s even harder to quantify seasonality, versus a slowdown in leasing activity due to economics, supply, etc.
An article this week in The Seattle Times helps to validate that, although consistent, leasing activity has slowed for reasons beyond seasonality and vacancy rates are inching up. Prognosticators here have evidence saying rents have actually fallen slightly relative to the 2016 summer–when there likely was too much enthusiasm for higher rents.
We don’t see a “rental cliff” like we all went over in 2009 either, but the speed with which rents have grown in the last 3-4 years isn’t sustainable, and more typical rent bumps, especially with all the new competition, is likely in 2017.