Real Estate Market Trends

Market Information: Washington DC
Delta Associates, a Transwestern Company

Economy: 3rd Quarter 2007
Prepared with the invaluable assistance of Dr. Stephen Fuller
Healthy Economic Conditions; Above-Average Job Growth;
Low Unemployment

The Washington metro area remains healthy despite softening conditions, as the economy continues to transition off the robust peak of the economic cycle. Regardless, the unemployment rate remains one of the lowest in the nation and jobs continue to expand at an above-average pace. Click here to read more.

Office: 3rd Quarter 2007
Leasing Activity Steady; Rents Edge Up; Vacancy Up Over the Past Year; Investment Sales Outpacing 2006 Levels

The Washington metro area experienced steady conditions during the 3rd quarter of 2007. Although vacancy is up over the past year, the metro area ranked 5th in lowest overall vacancy among large metros during the 3rd quarter. Click here to read more.

Flex/Industrial: Mid-Year 2007
Vacancy Down Over the Year; Healthy Rent Growth; Investment Sales On Pace To Match 2006 Levels

The Washington/Baltimore flex/industrial market gained traction during the 1st half of 2007, after a soft 2006. Annualized, net absorption is running above the long-term average due to both pre-leased deliveries and healthy leasing activity. Click here to read more.

Retail: Spring 2007
Washington Retail Market

As jobs continue to expand in the metro area, retail employment is expected to keep pace. In the 12 months ending March 2007 retail employment grew 1.2%. The above-average income of Washington metro area residents supports a vibrant retail market. Incomes in the Washington metro area grew by 17.3% from 2000 to 2006, compared to 16.3% nationally. Click here to read more.

Class A Apartments: 3rd Quarter 2007
Washington Remains Among Best in Nation.

Demand Remains Dampened by “Shadow” Market. Hope in Credit Crunch. Occupancy And Rents Challenged By Growing Pipeline.

Highlights of market performance as of 3rd Quarter 2007:

The region’s stabilized vacancy rate for investment grade (Class A and B) apartments increased to 2.7%. National rate = 5.8%. Click here to read more.

Condominium: 3rd Quarter 2007

Sales Take Annual August Holiday While Pipeline Declines Further in Washington. Contrary To Reports in The Popular Press, Prices Are Stable Region-Wide. As it always does, the third quarter brought summer to Washington, when sales activity usually slows down. This summer, though, the national Credit Crunch hit at the same time, which put a larger-than-usual dent in 3rd quarter sales. However, we consistently hear reports that both traffic and sales have rebounded after Labor Day, but too late to impact 3rd quarter totals. Click here to read more.

Class B Apartments: 3rd Quarter 2007
Rents Continue to Rise, Vacancy Edges Up.

Class B apartment rents and vacancy rates are up year-over-year: Average rent rates increased to $1,287, up 2.1% from a year ago. Vacancy increased by 160 basis points to 3.3% during the same period. Click here to read more.

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