New apartment building foreshadows growth in downtown Olympia

The soon-to-open 123 4th Apartments may foreshadow the evolution of downtown Olympia as the city prepares for an influx of a projected 20,000 more residents in the next 20 years.

Today’s downtown residential rates average less than $1.50 per square foot, according to a recent market analysis, but certain units at 123 4th Apartments cost more than $2 per square foot, with monthly rents as high as $2,691.

“If you see lights on in that building, you’ll see you’re in a new threshold, at least for that kind of development,” said John Owen of Makers Architecture, which finished the downtown market analysis in March. “It’s a point of transition.”

Owen cited the 138-unit building while reviewing the analysis Tuesday at the Olympia City Council meeting as part of an update on the city’s still-in-the-works Downtown Strategy.

Olympia has reached the halfway point in forming its Downtown Strategy, which involves implementation of goals in the city’s comprehensive plan. The latter is a blueprint that outlines the city’s planning and policy vision for the next 20 years.

The plan anticipates about 5,000 more residents will be living downtown in the next two decades — about 25 percent of the estimated citywide population growth of 20,000. Less than 2,000 residents currently live downtown, according to estimates.

That growth will generate demand for more housing, businesses, parking and even lodging, according to the analysis.

“The strategy is going to continue to evolve as we move on with more public input,” city senior planner Amy Buckler said Tuesday.

Another goal of the Downtown Strategy includes protecting scenic views of landmarks such as Mount Rainier, the State Capitol Dome, Puget Sound and the Olympic mountains. Buckler said the plan is to recommend better standards by analyzing these views and relating them to economic, housing and urban design goals.

Among the more notable points in the market analysis of downtown Olympia:

▪ State employment represents 34 percent of jobs in Thurston County, for a total of nearly 25,000 full- and part-time employees as of 2014. About 52 percent of those workers live in Olympia.

▪ The fastest-growing segments of the job market in Olympia in the next 25 years are projected to be in the construction, service and retail sectors. The largest business sectors in downtown Olympia are restaurants and retail.

▪ In the future, downtown retail will focus on a “lifestyle center” where residents can access food service, clothing, entertainment and other goods.

▪ The downtown business community can expect to see a 100 percent increase in sales during the next 20 years. There is potential to increase the amount of retail space by about 650,000 square feet during that time period. That equates to about 7.5 city blocks, according to the analysis.

▪ The influx of new residents will generate a demand for about 2,500 to 3,500 new housing units in downtown Olympia, including a mix of townhomes and low-rise and mid-rise developments.

▪ The analysis suggests improving the perception of security and parking in downtown Olympia.

▪ Demand for lodging is expected to increase, along with the local population. The analysis predicts a potential for as many as 311 new hotel rooms in the next 20 years, including at least one new full-service hotel.

This story was originally published May 11, 2016 at 2:02 PM with the headline "New apartment building foreshadows growth in downtown Olympia."