As reported to you in the “Apartment Update”, published on this site on February 27, 2001, the forecast for our local market was, and remains today, extremely positive.

Demand for apartment units in Spokane and Kootenai County remains extremely strong, and as a consequence, values have increased noticeably during the course of 2001. Permit numbers have bumped up over last years’ totals (I will update you on the exact numbers in January 2002.), but not dramatically. Therefore, the vacancy picture is still very healthy and largely unchanged from my February 27th update.

Active, knowledgeable investors are capitalizing on the current low interest rates to lock in the financing on keeper buildings only. Those buildings that are not a good long term hold (location, condition, obsolescence, etc.) are being sold off at a substantially higher price as compared to prices as of February 27, 2001.

I’ve noticed a dramatic, renewed interest in income property as a vehicle for retirement planning, especially since September 11, 2001.

Until next time,

Glenn Sather