For years Seattle was known as a company town. The company was the Boeing Company and the town was known as the Jet City. Jets are still a vibrant part of the new Jet City. This time they are materially impacting the single airport in the United States that is the closest jump off point to Asia and the Transpolar route to Europe. Last year SeaTac Airport processed 46.9 million passengers. The growth for 2017 was only 2.3% but the growth over the last five years has been 41%. This has lead to new airlines (7 new airlines for this year and last) now serving our market and $17 million in construction for a new international arrivals terminal.
The impact on commercial real estate is easy to understand. Look at the impact in the hotel industry alone. Seattle has an occupancy rate of 84.2%. The industry will have 14,343 rooms adding 2,431 for 2018 and that counts only the 8 new hotels coming online, not those being contemplated and undergoing the permitting process. Seattle Commercial Real Estate LLC has been engaged by international firms seeking sites in the core area of downtown. The wave of demand for commercial real estate sites for the hotel industry has us looking for sites in Bellevue, Redmond, and other suburban locations. The commercial real estate industry and its relationship to tourism is a dynamic that bodes well for investors in commercial real estate. The flights are still waiting lining up for take off and the future is bright.
