back again: commentary on the revitalization of pioneer square

Donovan RypkemaPlaceEconomicsWashington, DC

May 2, 2014

No more whining

Competent, well regarded organization

Written set of specific goals and tasks

Acknowledgement of problems but no longer sense that “all is lost”

Expansion of BIA

North Lot Development

Restaurant Heaven

Trolley Line

Major engagement, re-engagement of

citizens

Pioneer Square Today

Good News on the Office Real Estate FrontApril 2013 Survey 5 year average

Vacancy Rate 9.4% 13.9%

Vacant Square Feet 610,698 893,892

12 Month Absorption (s.f.) 136,214 45,162

Gross Rent/s.f. $27.01 $25.21

Sales Price/s.f. $349 $274

Sales Volume (million) Past Year

$426 $188

0 20 40 60 80 100 120 140 160

Law/Consulting

Restaurant/Café/Bar

Retail

R&D/Programming/Software/Tech

Art

Non-Profit/Advocacy

Engineering/Architecture/Design

Services

Advertising/PR/Marketing

Auto related/Parking

Real Estate Related

Insurance/Financial Services

Businesses in Pioneer Square

• Research and Development in Biotechnology

• Software Publishers

• Internet Publishing and Broadcasting and Web Search Portals

• Advertising Agencies

• Professional and Management Development Training

• Industrial Design Services

• Graphic Design Services

• Mortgage and Nonmortgage Loan Brokers

• Employment Placement Agencies

$0

$20,000

$40,000

$60,000

$80,000

$100,000

Capitol Hill First Hill Uptown South LakeUnion /Denny

Triangle

Belltown PioneerSquare /

InternationalDistrict

CBD

Average Household Income

$0

$10,000

$20,000

$30,000

$40,000

$50,000

$60,000

$70,000

Median Household Income

0%

10%

20%

30%

40%

50%

60%

70%

80%

Capitol Hill First Hill Uptown South LakeUnion /Denny

Triangle

Belltown PioneerSquare /

InternationalDistrict

CBD

Associates Degree or Higher

For Pioneer Square/ID to reach the Average number of people with degrees of the next lowest educational attainment neighborhood (First Hill) you would have to add 1916 people ALL with associate

degrees or higher.

0%

10%

20%

30%

40%

50%

60%

70%

80%

Change in median HH income 2000 - 2013

20

25

30

35

40

45

50

Capitol Hill First Hill Uptown South LakeUnion /Denny

Triangle

Belltown PioneerSquare /

InternationalDistrict

CBD

Median Age

Intentional ignoring of criminal activity

Discouragement of reporting crime

“Nothing we can do” response

Policing Problem

* as long as you keep them down in Pioneer Square

ESPECIALLY the poor, the addicted, the mentally ill, the homeless.

Share the Square should mean

that the rest of the

neighborhoods in Seattle

should share the social

responsibility of housing the

~2500 poor and homeless and

addicted and mentally ill now

warehoused in Pioneer

Square.

Pioneer Square:Dumping Ground for Busses

• “It’s fixed now”

• Success based on person, not organization

• Sudden “crash” as restaurant hot spot

• No resolution on

public safety/civility issues

• Not paying attention to

the little details

Residential Office Difference

Food at home $3,750 $625 $3,125

Food away from home $2,437 $1,044 $1,393

Alcoholic beverages $482 $542 -$60

Household operations & supplies $2,021 $171 $1,850

Household furnishings & equipment $1,462 $627 $835

Apparel $1,467 $588 $879

Health care $897 $508 $389

Entertainment $2,379 $900 $1,479

Personal services & other $1,899 $763 $1,136

TOTAL $16,794 $5,768 $11,026

The Frye

• 141,500 s.f.• 234 apartments• $10,650,000

Appraised Value• Rents $585-$945• Taxes $1,987.07

(actual)• Taxes $110,050

This should be the landmark entry building to Pioneer Square

“Property rights” does not give the right to diminish the value of adjacent properties by extended periods of vacancy, lack of maintenance, and building deterioration

Thank you very

much

© Donovan D. Rypkema, 2014PlaceEconomics

PO Box 7529Washington, DC 20044

202-588-6258DRypkema@PlaceEconomics.com

www.PlaceEconomics.com