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EMERGING MARKETS

LYNNWOOD, WA

 

"HUB CITY" ENTERS THE 21ST CENTURY

 

LYNNWOOD IS EMERGING

In the mid-1950s, the construction of Interstates 5 and 405 radically changed the sleepy farmland near their junction. A booming business district soon sprang up to serve motorists, earning the nickname "Hub City". Today, Lynnwood has grown into one of the largest concentrations of retail in the region, anchored by the Alderwood Mall.

In 2005 Lynnwood adopted the City Center Sub-Area Plan with the objective of redeveloping the city center, leaping from the existing 3.3 million SF to a planned 9.1 million SF of development. When considered along with the existing convention center, college campuses (Edmonds Community College and Central Washington University's secondary location), and major transit center, it's no surprise Lynnwood is the sole Regional Growth Center designated by the Puget Sound Regional Council (PSRC) between Northgate and Everett on I-5. 


DEMOGRAPHIC SNAPSHOT

 

37,176

Population (2017)

38,840

Population

( 5-year projection )

$56,603

Avg. Household Income

$63,133

Income

( 5-year projection )

 

Source: Esri


MAJOR PROJECTS

 
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CITY CENTER SUB-AREA PLAN

The City of Lynnwood's City Center revitalization plan will capitalize on future Sound Transit expansion by re-zoning areas of the downtown to encourage development. Increased height and density limits will allow for up to 35 stories in some areas. The City has expedited the permitting process by pre-approving SEPA review, which can potentially shave years off of development time.

The City plan also includes upgrading streets and creating a more pedestrian-friendly environment, along with creating new public spaces and parks, improving cultural attractions. The enhancement of livability in the area has already drawn multi-family and senior housing development projects to the area, as well as a new 150-room hotel.

 

LIGHT RAIL

Sound Transit 2 will extend Light Rail from Northgate to Lynnwood's city center. Service is anticipated to begin in 2023. Once linked to the existing and planned Light Rail in the rest of the area, Lynnwood travelers will enjoy quick and convenient transportation to Seattle, Bellevue, SeaTac Airport, and beyond.

The extension work includes plans to revamp and expand the existing Lynnwood Transit Center, creating a light rail station with an elevated platform and associated street widening and pedestrian improvements. A new five-story parking garage will increase parking capacity by 500 spaces.

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REAL ESTATE MARKET STATS

Residential and Investment Data

 

MULTIFAMILY

$1.59/SF

Monthly Rental Rate

4.3%

Vacancy Rate

4.9%

Historical Cap Rate

$213,990

Avg. $/Unit

 

RETAIL

$19.64/SF

Rental Rate

2.9%

Vacancy Rate

6.6%

Cap Rate

$266

Avg. $/SF

 

OFFICE

$24.41/SF

Rental Rate

6.5%

Vacancy Rate

6.7%

Cap Rate

$235

Avg. $/SF

 

Source: Costar, REIS, NWMLS and Dupree & Scott. Statistics are for Kenmore and surrounding markets. Cap Rate calculated from Costar and Dupree & Scott for all of 2017 only.  Statistics shown above are a blend of all qualities on investment spectrum (class A, B, & C).


TRANSPORTATION

 

 
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DOWNTOWN SEATTLE

24 Minute Drive

DOWNTOWN BELLEVUE

30 Minute Drive

ST3: LIGHT RAIL CONTINUES NORTH

The Sound Transit 3 expansion will expand Light Rail service even further North, connecting Lynnwood to downtown Everett. The project calls for construction of six new transit stations, and positions Lynnwood once again as a major "hub" in Western Washington. Service for the ST3 expansion is projected to begin in 2036.

Source: Sound Transit

Source: Sound Transit