X

Thank you for sharing!

Your article was successfully shared with the contacts you provided.

SEATTLE-Despite a robust economy and an ultra-tight office market in the Puget Sound region, the Federal Deposit Insurance Company has placed Seattle on its watch list of cities in danger of overbuilding.

In a report released yesterday, the FDIC cited layoffs at Boeing, slowing employment growth and stock market volatility as cause for concern in Seattle, one of 13 it believes are at risk for overbuilding. Other cities on the list include Portland, Salt Lake City, Phoenix, Sacramento, Denver and Las Vegas.

The FDIC’s primary concern is that banks could take a financial bath should overbuilding, high vacancy rates and low rental rates force developers to default on real estate loans. “Office adsorption rates, which are closely tied to business expansion, could decrease if companies become constrained by labor shortages or choose to slow their growth in the face of more volatile capital markets,” the report states.

Want to continue reading?
Become a Free ALM Digital Reader.

Once you are an ALM digital member, you’ll receive:

  • Unlimited access to GlobeSt and other free ALM publications
  • Access to 15 years of GlobeSt archives
  • Your choice of GlobeSt digital newsletters and over 70 others from popular sister publications
  • 3 free articles* across the ALM subscription network every 30 days
  • Exclusive discounts on ALM events and publications

*May exclude premium content
Already have an account?

GlobeSt

Join GlobeSt

Don't miss crucial news and insights you need to make informed commercial real estate decisions. Join GlobeSt.com now!

  • Free unlimited access to GlobeSt.com's trusted and independent team of experts who provide commercial real estate owners, investors, developers, brokers and finance professionals with comprehensive coverage, analysis and best practices necessary to innovate and build business.
  • Exclusive discounts on ALM and GlobeSt events.
  • Access to other award-winning ALM websites including ThinkAdvisor.com and Law.com.

Already have an account? Sign In Now
Join GlobeSt

Copyright © 2020 ALM Media Properties, LLC. All Rights Reserved.