Once the proud backbone of Snohomish County’s manufacturing and aerospace sectors, Everett’s industrial buildings are experiencing a significant shift. As industry trends evolve, automation increases, and companies consolidate, large swaths of formerly bustling industrial spaces now sit vacant. At first glance, these buildings may seem like relics of a bygone era—but they’re playing a surprising and significant role in shaping the residential real estate market across Everett and surrounding areas such as Marysville, Lynnwood, and Mukilteo.

In this blog, we’ll explore how the presence of vacant industrial buildings is influencing home prices, buyer and investor interest, land use planning, and community identity. Whether you’re a prospective homeowner, investor, or long-time local, understanding the changing dynamic between industrial vacancies and housing trends offers a valuable lens into the future of real estate in this rapidly transforming region.

1. A Changing Economic Landscape in Everett

Everett has long been associated with heavy industry, most notably as home to Boeing’s massive manufacturing operations. But in recent years, shifting global supply chains, increased automation, and rising land values have led to a slowdown in industrial growth in the area. As certain operations have downsized or relocated, the result has been an increase in vacant industrial properties—often in centrally located areas with easy access to transportation corridors.

While these vacancies may seem like economic setbacks, they also signal opportunities. Everett’s city planners and real estate developers are now increasingly viewing these properties through a residential lens, asking: What else could we do with this space?

2. Opportunity for Redevelopment: From Factories to Housing

One of the most direct ways vacant industrial buildings impact the residential market is through adaptive reuse or total redevelopment. As demand for housing in Snohomish County continues to climb—driven by population growth and Seattle’s expanding commuter radius—developers are looking to these dormant industrial properties as prime sites for new residential construction.

Some of the benefits include:

• Zoning Flexibility: Many former industrial sites are located in zones already approved for mixed-use or high-density redevelopment, making it easier to get approval for housing.

• Size and Scale: Industrial lots are typically large, offering enough room for townhomes, multi-family units, or even mixed-use communities with retail and amenities.

• Infrastructure: Existing access to roads, utilities, and public transit makes redevelopment more practical and cost-effective.

Examples of redevelopment in Everett include the Port of Everett’s Waterfront Place project, which is transforming former industrial docklands into a mixed-use community with condos, apartments, shops, and public spaces. This kind of revitalization is setting the tone for what may happen with other underutilized industrial buildings in the area.

3. Increased Housing Supply—But Is It Affordable?

One of the most pressing issues in Everett and the surrounding areas is the lack of affordable housing. Redeveloping industrial sites into residential properties could help alleviate this pressure by adding inventory to the market. However, whether this new supply translates into affordable housing depends on several factors:

• Development Costs: Adaptive reuse of industrial buildings can be expensive due to required environmental cleanup (especially on brownfield sites), building retrofitting, and rezoning fees.

• Market Focus: Many developers prefer to build high-end or luxury housing to ensure a return on investment. This can price out the very residents who need housing the most.

• Public Policy: Incentives such as tax abatements, grants, or inclusionary zoning laws (which require a portion of new units to be affordable) can help steer redevelopment toward more equitable outcomes.

Overall, while new development helps with supply constraints, policymakers and local leaders must be proactive to ensure these projects serve a broad spectrum of residents.

4. Effects on Neighborhood Character and Appeal

Vacant industrial buildings can have a profound psychological and aesthetic impact on surrounding neighborhoods. In many cases, empty and deteriorating structures can deter potential homebuyers who fear crime, contamination, or future uncertainty. Once the process of redevelopment gets underway, these locations can undergo swift and dramatic changes.

For example, in neighborhoods bordering vacant industrial zones:

• Revitalization increases home values. When industrial sites are repurposed or beautified, surrounding property values often rise.

• Walkability and services improve. Mixed-use development brings retail, restaurants, and public amenities within walking distance, making the area more desirable.

• Community pride is restored. Once-neglected parts of the city begin to attract new residents and investment, improving overall perception.

Everett’s Delta, Riverside, and Lowell neighborhoods have already begun to see these positive changes as vacant spaces find new life. In many cases, these areas now appeal to young families, tech workers priced out of Seattle, and retirees seeking walkable, connected communities.

5. Investor and Developer Interest on the Rise

Real estate investors are particularly interested in industrial-to-residential conversions because they offer a rare combination of location, scale, and potential upside. Many of Everett’s industrial properties are near waterfronts, freeways, and commuter rail—prime real estate for residential demand.

Key drivers for investors include:

• Everett’s commuter convenience: With access to I-5, Highway 2, and the Sounder rail line, Everett is increasingly attractive to those working in Seattle or the Eastside but seeking lower housing costs.

• Job growth in non-industrial sectors: The healthcare, education, and tech sectors are growing in Snohomish County, creating demand for nearby housing.

• Zoning reforms: Everett and surrounding cities are updating zoning codes to encourage higher density development, particularly in and around transit hubs and commercial corridors.

This trend is further supported by Washington State’s broader push for middle housing—duplexes, triplexes, and other multi-family solutions—in previously single-family zones.

6. Environmental and Infrastructure Considerations

Before residential development can occur, there are often significant environmental issues to address. Former industrial sites may have contaminated soil or groundwater due to past manufacturing activity. These “brownfield” sites must undergo remediation before they’re safe for housing.

While this poses challenges, there are also funding mechanisms to support cleanup efforts, including:

• Federal and state brownfield grants

• Tax increment financing (TIF)

• Public-private partnerships

From an infrastructure standpoint, converting industrial buildings into homes also requires significant updates to roads, drainage systems, and utilities. But once in place, these upgrades benefit the broader community, potentially reducing traffic bottlenecks and improving quality of life.

7. Pressure on Adjacent Communities

As Everett repurposes its industrial base for residential uses, nearby communities such as Marysville, Mukilteo, and Lake Stevens are also feeling the ripple effects. These areas face:

• Increased housing demand: As more people consider moving north of Seattle, surrounding communities become desirable due to proximity and potential affordability.

• Speculative investment: Investors anticipating Everett’s transformation may purchase property in adjacent cities, driving prices higher.

• Planning pressure: Local governments must quickly adapt their comprehensive plans to account for changing land use patterns and population growth.

Marysville, for instance, is currently exploring ways to expand its urban growth area and increase housing density to accommodate regional spillover from Everett’s changes.

8. Future Outlook: What’s Next for Everett’s Housing Market?

Looking ahead, the residential impact of vacant industrial buildings in Everett will depend on a combination of market forces, public policy, and community engagement. Here are a few trends to watch:

• Increased public-private collaboration: As the need for housing intensifies, expect to see more joint efforts between developers and city governments to redevelop industrial properties.

• Push for sustainable housing: Green building standards and eco-conscious development will likely play a central role, especially for younger buyers and renters.

• Transit-oriented development (TOD): With Link Light Rail expected to reach Lynnwood and potentially Everett in the future, areas around stations are primed for higher-density residential projects.

• Community involvement: Residents will demand a say in how their neighborhoods evolve, leading to a rise in town halls, advisory boards, and public planning initiatives.
   

Conclusion: The Power of Transformation

The vacant industrial buildings in Everett and surrounding areas represent both a challenge and an opportunity. While these spaces symbolize economic shifts and changing industrial needs, they also hold the potential to address one of the region’s most urgent concerns: housing.

By thoughtfully repurposing these sites, Everett can simultaneously preserve its economic heritage and chart a path toward a more livable, inclusive, and dynamic future. Developers, residents, and policymakers alike have a chance to shape a new narrative—one where old buildings don’t just fade away but become the foundation for the next generation of housing.

Are You Curious About Everett’s Evolving Neighborhoods?

If you're thinking about buying, selling, or investing in Everett or nearby areas, it’s never been more important to understand the full picture. Reach out today to learn how shifting land use and development trends could impact your real estate goals.