Magazine article Journal of Property Management

Distinctive District: Washington, D.C., Motors along Nicely as New Developments in All Sectors Spur Optimism and Activity

Magazine article Journal of Property Management

Distinctive District: Washington, D.C., Motors along Nicely as New Developments in All Sectors Spur Optimism and Activity

Article excerpt

While Washington, D.C., is nowhere close to resolving its infamous beltway traffic snarls, the city's real estate sectors are cruising at comfortable speeds, experiencing positive growth and returns in all sectors, a scenario head and shoulders above most major U.S. cities.

Office prices have reached their highest levels ever, $60 per square foot, as land prices continue to dramatically increase due to the shrinking amount of available building space. While the market is expanding to encompass previously undiscovered neighborhoods such as NoMa and Buzzards Point, the lack of available land has caused a tightening in the vacancy market and sent many companies scurrying for space in the suburbs.

"The market will continue to improve in the coming months," said Reggie Mullins, CPM, of Cushman and Wakefield, AMO. "While it looks the same statistically, there have been tremendous streetwise improvements; deals are getting done faster."

"Overall absorption has increased and the sublease market is shrinking," Mullins said. "Property managers are seeing minimal rent concessions."

The residential market is experiencing growth at the same rate, with increased building within the city to accompany the continued suburban sprawl.

"Last year we had 3,000-4,000 units come online, but the strong housing market pushed nearly half of them to condominiums," said Cindy Clare, CPM, of The Mark Winkler Co. "The impact of the strong market is felt mostly in Class A, and the income levels of renters makes them easy candidates for buying." Clare said the transient nature of D.C.'s residents translates to turnover rates of 55-65 percent and 40-50 percent in Classes A and B, respectively.

[ILLUSTRATION OMITTED]

"Another trend within multifamily is putting 'for sale' touches in apartments, such as granite counter tops, new appliances and crown molding," Clare said. …

Search by... Author
Show... All Results Primary Sources Peer-reviewed

Oops!

An unknown error has occurred. Please click the button below to reload the page. If the problem persists, please try again in a little while.