Published January 2001

Everett's older buildings provide new opportunity

Is downtown Everett positioned for major redevelopment in 2001? Well, that’s an interesting question, isn’t it?

With all the activity in downtown Seattle, the Eastside, Bothell, Mill Creek and Lynnwood, what’s going on in Everett’s downtown CBD?

For the past few years, Colby Avenue office development (or should I say redevelopment?) has continued to march down both sides of the street primarily between Everett and Pacific avenues. On any downtown business day, Colby Avenue is alive with business clientele, and at lunchtime, the eateries and coffeehouses are full.

Class “A” building space dominates the landscape, with older storefront retail stores filling in. Additions to this “classy” look include Shockey/Brent’s new office space, a renovated retail space that had long since seen its heyday along a busy Colby retail corridor. I’ve complimented Reid Shockey personally on a job well done and hope that other user/investors will recognize an “opportunistic trend” in redeveloping instead of building new.

The office rental rates have stayed fairly constant and stable, with overall vacancy increasing slightly to 7.61 percent over the previous quarter’s 4.45 percent (a historical low).

The renovation and development have had a dramatic effect on the downtown image, and I believe with the addition of an emerging downtown “residential” market, may bring new life again to downtown.

But I don’t think the major opportunities are going to happen along Colby Avenue.

Let’s take a look at the table below and compare what the rest of the Everett CBD marketplace is doing. By that, I mean let’s take a closer look at the “B” and “C” markets as well.

First of all, it’s a lot larger — five times the size of the Class “A” market. Let’s face it, most of these spaces are tired and need maintenance, right? They are not as “modern” and refined as their neighbors on Colby — and that’s why I think they represent an opportunity, particularly for users and investors who are fleeing double-digit rental rate increases and would rather buy than rent.

Everett, California, Hewitt and Pacific avenues are home to a number of buildings built after the turn of the 20th century that are ripe opportunities for redevelopment. In 2001, look for some great acquisition “bargains” in this market and the beginning of an urban renewal as new professional and technical companies discover this unique market niche. I’ve heard rumors of several changes already, and will be anxious to report on them later.

We’ll continue our focus on specific market types and submarkets in upcoming articles, so drop me a line — let me know what your interests are and remember: “Invest for the long term, stay current with market information and trust the advice of a knowledgeable commercial real estate broker.”

Keith McKinney is the Principal and Broker for Coldwell Banker Commercial, Northend Commercial Brokers LLC in Everett. Call 425-347-6620 for more information on Coldwell Banker Commercial.

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