State of the Market

2005 was a year of recovery for the Seattle real estate market. Leasing vacancy rates dropped as the regional economy improved. Investment sales were robust as low interest rates and a lack of product drove investor demand. The coming year will see more of the same in the leasing market. Vacancy should continue to drop and asking rents will rise. The investment market will cool off as interest will continue to rise. Investment inventory will increase as the market will shift away from a seller's to a buyer's market.

Nick Papa
Research Analyst
Grubb & Ellis Company