The late summer wildfires on the West Coast created some of the worst air pollution in the world. At one point, Oregon pollution was in fact the worst in the world. While the fires burned 4 million acres, they also put at risk $120 Billion in commercial real estate properties, which is part of a total debt market of approximately $4.5 Trillion of commercial real estate properties. Of this $93 Billion in CMBS loans are potentially at risk. Additionally, the predicted insurance losses from riots and civil unrest is predicted to be over $100 Billion for the US insurance industry and that does not even begin to address the damages from a truly epic season of tropical storms and natural disasters.
Commercial real estate is a reflection of all that is going on around us. Right now, single family housing is in incredible demand with historically low interest rates and industrial real estate which is the underpinning of our industrial base is in high demand. Much of this is due to the disruption of historical supply chain models that saw China delivering 21% of all trade orders, but not anymore. The incredible change in conventional retail and the shift to online shopping, the movement of businesses and industry back into the US are all part of the dynamic changes occurring in the commercial real estate industry. We love to see a recent record sale of a downtown Seattle commercial real estate parcel of $4,470 per square foot. It is a harbinger of future potential and yet…
Seattle commercial real estate is a great long-term bet but the professionals at Seattle Commercial Real Estate believe that the market is still struggling to find its direction. We see still more adjustments coming and a surge in demand in Pierce, Snohomish and Thurston Counties markets for commercial real estate is a flag waving in the wind to Seattle. It is going to be an interesting ride towards establishing a new base from which our future will be built. From these changes will come opportunities and that is where Seattle Commercial Real Estate will work to assist its clients.
