Snohomish County Commercial Real Estate Market Update – Q1 2025
Published by Weitz Commercial | May 2025
📈 Market Overview
Snohomish County’s commercial real estate (CRE) market continued to navigate a shifting landscape in Q1 2025. Despite challenges like high interest rates and cautious lending, both the multi-family and office sectors remained active, especially in high-demand suburban areas such as Everett, Lynnwood, and Bothell.
🏘️ Multi-Family Snapshot
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Vacancy Rate: ~4.8%
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Rent Growth: +1.2% quarter-over-quarter
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New Starts: 312 units (↓40% vs. Q1 2024)
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Investor Focus: Value-add Class B/C deals near transit lines
💡 Everett’s waterfront and walkable urban core are drawing increasing institutional interest.
🏢 Office Sector Update
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Vacancy: 18.6%
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Leasing Activity: Modest rebound, led by medical and professional services
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Conversions: Aging suburban offices are being eyed for residential or mixed-use redevelopment
📍 Bothell and Lynnwood are gaining traction from smaller tenants needing flexibility outside of Seattle.
💼 Investment & Sales Trends
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Transaction Volume: Low, with selective private and 1031 exchange buyers dominating
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Cap Rates: ~6.1% (multi-family), ~7.3% (office)
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Buyer Sentiment: Conservative but opportunistic, especially near transit expansion areas
🏗️ Development Drivers
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Lynnwood Link Extension (Sound Transit) is boosting TOD interest
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Zoning changes in Lake Stevens and Everett are enabling denser multi-family development
🔑 Notable Q1 Transactions
| Property | Submarket | Type | Price | Buyer |
|---|---|---|---|---|
| The Willows Apartments | Everett | Multi-Family | $18.2M | Private Equity |
| Pacific Office Plaza | Lynnwood | Office | $12.5M | 1031 Buyer |
| Lakeview Medical Complex | Bothell | Medical Office | $7.1M | Owner-User |
📣 Broker Insight – Weitz Commercial
“Snohomish County is increasingly attractive to yield-focused investors. We're seeing strong interest in properties with stable tenancy and redevelopment potential near transit.”
🔮 What’s Ahead in Q2 2025
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Potential Fed rate shift and lending impacts
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More lease restructuring in older office parks
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Watch for state-level rent control discussions
📞 Let’s Talk
Looking to buy, sell, or reposition a commercial asset in Snohomish County?
Scott@Weitzcommercial.com
T: 206-306-4034
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