Says Raabe: "We've done projects throughout the area as far north as Everett and as far south as Federal Way. One thing we learned in the past down cycle is that the further out you go from the core, the weaker the market is."

Like so many experts forecasting a less-than-sunny economy, despite the Fed's interest rate cuts, Raabe expects a slowdown. "That's given us somewhat of a defensive strategy, which means staying close to the core and what we believe to be the best bet, which is the urban infill market."

Other factors play into Raabe's up-beat opinion about Downtown development. The snarl of traffic congestion around Puget Sound for one. "Traffic gets worse here ever year," says Raabe adding, "There's been no solution, and the proposed solutions aren't going anywhere. Commutes are getting worse every year, and people are getting to the point where they don't want to do it any longer."

What do renters find so attractive about Downtown apartments (and render them so willing to pay the stiff rents)? Given that many apartment dwellers are singles, he says, or couples whose kids have left the nest, many are opting out of the outlying residential areas, that provide fewer amenities for the renter's lifestyle. Raabe also discusses the fact that a large part of Seattle's work force, software and high-tech employees, tend to be more mobile in their jobs and less inclined to buy.

As far as the Eastside market goes, Raabe says, "We're not bullish on Eastside, particularly Bellevue. There's an awful lot of new product coming on line in those suburban markets, and we're not seeing what's driving so much new apartment development there."

Instant Insights /

Seattle Apartment Developer Places His Money on the CBD

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