The surveys are in and, as suspected, the Lakewood rental market is strong. Out of 11 Market Rate apartment communities surveyed and 1882 units, there were only 32 vacant apartments representing a 98-percent occupancy rate. The Market Rate Affordable is 99-percent occupied with only 10 vacant apartments out of 10 communities surveyed and 1216 apartment homes. See full report.
All site representatives unanimously agreed that the market is strong. Respondents also chimed in on whether or not they were seeing any trends on people working in Seattle and living in Lakewood. Three managers in the Market Rate communities said yes. They felt it was due to the Sounder train being the first stop, and affordability is significantly better in Lakewood. Everyone has seen an increase in rents this year. However, out of 32 vacant apartments, the dollar per square foot in Lakewood is even lower than Tacoma. One reason might be that Lakewood has not seen any new product in several years, until now, as several projects are being considered and a few have submitted for permitting.
Multifamily Tax Exemption
Two of those aforementioned projects are taking advantage of Lakewood’s Multifamily Tax Credit (MFTE). MFTE is offered in the residential target areas of the Central Business District, Sounder Station District, and Springbrook.
What is MFTE?
It allows the project owner to be exempt from property taxes for a period of 8 years (for a market rate project) or 12 years (for a project that includes at least 20-percent affordable housing). To find out more about this great opportunity in Lakewood, please contact Becky Newton or Courtney Casady.