Starting mid 2016, a new 16 story Seattle apartment tower will feature the regions first to story Whole Foods Market. The project will feature over 265 apartment units on a half block lot on the border between First Hill and Capitol Hill, at the intersection of Madison and Broadway. This is only one of nearly 12 new apartment projects planned for the neighborhood. Developers plan on capitalizing on rapidly rising rents as more people move into the area due to the increase in the number of jobs and tech industry positions.
Whole Foods Market will take up the first two stories of this new project featuring over 40,000 ft.² opening spring, 2018. It will be the company’s first two-story business in the Seattle or Puget Sound area. There are total of six stores currently in the area with a sixth opening in Bellevue and an additional four more projected for Washington state.
Even though the organic food chain saw stock prices drop in February, the First Hill apartment market have increased 12% and developers feel that this increase will positively affect Whole Foods in this area. If all of the projected apartment buildings are completed it will increase the neighborhood’s apartment stock by 52%.
Amid all of this positive projections there are red flags for the apartment market. Even though rents have increased the submarkets vacancy rate has also increased from 2.9% to 3.8% over the last year. As of the publishing of this post, nearly 6.5% of new units are vacant. However, the increase in jobs in the Puget Sound area is drawing apartment developers as well as new business developers and projects. For instance, the Swedish Medical Center plans to expand its Cherry Hill campus.
For more information on Capitol Hill, First Hill or changes to the apartment market and condo market in Seattle please stay tuned to our blog or contact Mary Pong.
By Aspersions at English Wikipedia [Public domain], via Wikimedia Commons