Washington Unit Lot Subdivision

What Is a Unit Lot Subdivision?

As cities look for ways to increase housing supply without dramatically changing neighborhoods, Unit Lot Subdivisions have become a popular development tool. They allow builders to create multiple homes on a single property while still giving each homeowner individual ownership of their home and land. It is essentially putting a parent building on a parcel and creating lines of ownership in that building. As long as the parent building meets zoning standards multiple lines of ownership can be drawn. Below is a great YouTube video on the subject matter with one of the most respected land use attorneys in town (Terrance Wilson). 

Instead of creating traditional lots first and then building homes, the process typically works like this:

1. A developer designs and builds a parent building on one parcel.
2. The property is subdivided into smaller unit lots around each home or residence.
3. Each homeowner owns their residence and the land directly beneath it.

Shared areas such as driveways, landscaping, or open space are usually maintained through a homeowners association (HOA) or shared easements.

Why Developers Use Unit Lot Subdivisions

Unit lot subdivisions allow for more efficient use of land compared to traditional subdivisions. Key benefits include:

• More housing units on the same property
• Lower development costs per home
• Greater flexibility in design, including townhomes, cottage clusters, and small detached homes
• Individual ownership rather than condominium ownership

What Buyers Should Know

Residence in a unit lot subdivision are typically fee simple ownership, meaning buyers own both the home and the land it sits on. However, shared spaces and infrastructure are often managed collectively through an HOA.

Condominiums vs Unit Lot Subdivision-

Condominiums: Often faster to implement because they involve a private attorney and surveyor rather than a long city review process. However, they may carry a stigma in some markets and have more liability.

Unit Lot Subdivision: Offers a clean, municipally reviewed subdivision process that can feel more legitimate to buyers in single-family neighborhoods, though it can take much longer (6 months to a year) to finalize.

Weitz Commercial Take: 

We love this tool and think that it can and will be a game changer in many mid-sized cities around Washington State. Everett is a great example of a city that has implemented this law perfectly. There is a need for more homes, but with vacant land growing more and more scarce the city has made it so there are no more density requirements. This means that as long as your building meets the design requirements of a specific zoning, separate unit lots can be created to increase the number of owners in a parent building.

For more information on Everett Commercial Real Estate or Everett Real estate development, we're here to help. 

Weitz Commercial 

2716 Colby Ave

Everett, WA 98201 

t: (206) 306-4034

Scott@Weitzcommercial.com

Nathan@WeitzCommmercial.com 

Snohomish County Retail Commercial Real Estate Update

Based on a recent article in the Everett Herold, Snohomish County retail vacancies remained very low (around 3.4%) in Q4, 2025. The Submarket continues to demonstrate remarkable resilience even as vacancies go up around the state and nation. Over the past 6 years, the vacancy rate has never wavered by more than 1%. The rate has stayed below the national average reflecting the steady demand for shopping center and storefront space locally. 

It also shows us the steady population growth and the stability of small neighborhood retail spaces to survive the decline in big-box retail. Limited availability is also continuing to support this statistic in the county’s commercial property market. Ned Whalen, a commercial broker for Kidder Matthews says, “People aren’t building retail like they used to, supply and demand are the biggest drivers of a low vacancy rate.”

Shannon Affholter, chair of the Runstad Department of Real Estate at the University of Washington, says "Snohomish County’s low retail vacancy rate reflects the prolonged lack of new construction. Higher construction costs, along with a longer and more complex approval process at the municipal level and uncertainty about how much space retailers are willing to lease, have discouraged developers from adding new space, leaving existing properties with little capacity to absorb additional tenants,” he said.

Our take: 

This a bit of a 'catch 22' in that vacancy rates are low, but building remains unpracticable given the costs to build, but rates are not seeming to be increasing dramatically. 

Overall, this coincides with our positive outlook on Snohomish County commercial real estate. We need to build more retail, office and apartment complexes and the vacancy rate would indicate that well-built / positioned projects will find ample tenants. 

Our Firm: 

Weitz Commercial 

2716 Colby Ave 

Everett, WA 98201 

Scott@weitzcommerical.com 

t: 206.306.4034. 

Snohomish County removes Design Review Board!

Snohomish County Council approves plan to remove Design Review Board | HeraldNet.com

A recent update to Snohomish County Council rules and regulations has approved the elimination of the Urban Center Design Review Board. This removes a discretionary review layer previously required for certain urban growth area developments and shifts design review to an administrative, staff-based process.

Ultimately, we envision this will reduce entitlement risk, improved timeline predictability, and potential reduction in soft costs for qualifying projects. It’s a modest, but meaningful, improvement to development feasibility in unincorporated Snohomish County.

Previously, certain projects were subject to review by a volunteer design board. The board subjected projects to discretionary design feedback beyond baseline code compliance. Now projects run directly through the Planning and Development Services. This means review is administrative and based on objective code standards; no public board presentation is required. Design standards do still exist but enforcement is staff driven rather than board driven.

Weitz Take: 

LOVE this. Imagine spending millions on a project and having it held up by a subjective volunteer review Board?! As long as city code is met, projects can get approved quicker allowing for less carrying costs and presumably much needed building around Snohomish County. Kudos to the County for seeing these issues and addressing them!

For more information on Snohomish County Commercial Real Estate, consider contacting an Everett Based Commercial broker. 

Our Firm: 

Weitz Commercial

2716 Colby Ave

Everett, WA 98201

t: (206) 306-4034

Scott@Weitzcommercial.com 

Trump announces proposal to ban institutional buyers from buying single family homes.

 

Trump announced steps to ban to large institutional investors from buying homes. He intends to seek Congress to 'codify' (pass a law) that would make it a formality. 

Weitz Take: Love him or hate him, I do like this policy. Companies like Invitation Homes should build housing like multi-family rather than extract from current inventory. As is, they take homes off the market and provide far less inventory to people looking to purchase homes and skewing natural supply/ demand. 

It's important to note that this may certainly affect Western Washington. I can tell you with certainty that Invitation Homes was a huge purchaser of homes about 10-15 years ago in the area. I don't know what they have done recently but removing them as a potential buyer and possibly pushing them to sell what inventory they do have (it's uncertain whether this is a part of the proposal from Trump) would lead to a lot more supply on the market and likely hurt pricing overall in the area. 

That said, I don't make strong assertions on a law until we see the actual language. As usual, the devil is in the details. 

Ray Dalio Comments on 2025 and beyond

 Below is a summary of a recent article by Ray Dalio. For those that may not be familiar with Mr. Dalio, he started what became the world's largest hedge fund from his apartment. That said, when he talks, we listen. We found these takes particularly interesting: 

2025 Wasn’t About AI Stocks — It Was About the Value of Money

In his year-end reflection, Ray Dalio argues that most investors misunderstood the real story of 2025. While headlines focused on the surge in U.S. stocks—especially AI-related names—the true driver of global market performance was the decline in the value of money itself, particularly fiat currencies.

The Biggest Market Move of 2025: Currency Debasement

Dalio points out that nearly all major fiat currencies weakened last year, with the U.S. dollar falling meaningfully against both hard currencies and gold. Gold, which Dalio views as the only major non-fiat reserve currency, rose roughly 65% in dollar terms, making it the best-performing major asset class of the year.

This matters because returns depend on the currency you measure them in. While the S&P 500 rose about 18% for U.S.-based investors, those same returns were far less impressive—or outright negative—when measured in stronger currencies like the Swiss franc or gold. In gold terms, U.S. equities actually lost nearly 30% of their value.

Dalio’s core point: when money weakens, assets priced in that money can appear to rise even if real purchasing power is falling.

Bonds and Cash Quietly Lost Purchasing Power

Although U.S. Treasury bonds produced positive nominal returns, Dalio emphasizes that bonds are ultimately promises to deliver future money. When money is being debased, the real value of those promises declines. Measured in strong currencies or gold, long-duration bonds and cash were among the worst investments of the year.

With nearly $10 trillion of U.S. debt needing to be rolled in coming years—and the Federal Reserve likely biased toward easier policy—Dalio sees long-term debt as structurally unattractive, especially if inflationary pressures persist and the yield curve steepens further.

U.S. Stocks Underperformed the World

Despite solid earnings growth, U.S. equities significantly underperformed international markets. European, Chinese, Japanese, and emerging-market stocks all delivered stronger relative returns, reflecting a meaningful shift in global capital flows away from U.S. assets.

Dalio views this as part of a broader rebalancing: foreign investors reducing exposure to U.S. stocks, bonds, and cash, while increasing diversification into non-U.S. markets and gold.

Earnings Were Strong — But Political Risk Is Rising

U.S. corporate earnings grew by about 12% in 2025, driven by both higher sales and expanding profit margins. However, Dalio warns that margins may become a political flashpoint. Productivity gains—some driven by technology and AI—have disproportionately benefited capital owners rather than workers, widening wealth and income gaps.

That dynamic, he argues, is fueling rising political tension between pro-capitalist and redistributive forces, a conflict that could directly affect taxes, regulation, and future corporate profitability.

Valuations Look Stretched Heading Into 2026

With equity valuations high, credit spreads tight, and liquidity abundant, Dalio estimates long-term expected equity returns at roughly 4–5%, well below historical norms and only marginally above bond yields. In his framework, that implies low future returns and elevated downside risk if interest rates rise or liquidity tightens.

Illiquid assets—such as private equity, venture capital, and some real estate—have not benefited as much from reflation and may face increasing pressure as refinancing costs rise and liquidity premiums normalize.

Politics, Geopolitics, and the “Big Cycle”

Dalio places 2025 squarely within what he calls the Big Cycle - a period marked by high debt levels, monetary debasement, political polarization, and rising geopolitical conflict.

He highlights:

• A shift toward government-directed capitalism in the U.S.

• Growing use of sanctions, tariffs, and unilateral economic power

• Increased military spending and borrowing globally

• Continued demand for gold amid declining trust in fiat systems

• Early signs of a speculative AI-driven bubble

These forces, he argues, will remain dominant drivers of markets and economic outcomes in the years ahead.

The Takeaway

Dalio’s core message is simple but uncomfortable: nominal gains can hide real losses. Investors who focus only on headline returns may miss what’s happening to purchasing power, currency strength, and long-term risk.

Rather than chasing recent winners, he urges investors to understand how money, debt, politics, and productivity interact—and to build portfolios that can withstand the full cycle, not just the next rally.

Our take

Hard to add much to Dalio. We have the utmost respect for his takes on the markets and global movements. In sum, we think cautious optimism in certain areas that provide zoning opportunities is a solid strategy as we face many uncertainties both nationally and globally. 

For more information on Everett Commercial Real Estate invests, we are always happy to chat. 

Scott Weitz

Scott@Weitzcommercial.com

C: 206.306.4034.