Search
 

District Office Market Leads the Country

WASHINGTON, DC-The District weathers the economic storm--and other problems--to emerge as one of 2001's highest performing commercial real estate markets in the country, according to Cushman & Wakefield's year-end MarketBeat series.

By Barbra Murray | Updated on January 09, 2002

WASHINGTON, DC-In an advance version of its year-end 2001 MarketBeat series, Cushman & Wakefield has concluded that the Washington, DC office market stood head and shoulders above most other regions despite the economic downturn and the emotional hurdles caused by the terror attacks in September. The area’s office market had a strong performance that is expected to continue well into 2003.

Speaking to GlobeSt.com, Cushman & Wakefield Senior Associate Scott Keeton says “the report certainly shows that, without a doubt, DC has proven itself to be one of the strongest markets in the country this year.” Most notable among the area’s commercial real estate achievements is its standing as the metropolitan area with the lowest Commercial Business District vacancy rate, 5.7%, in the entire country as of the end of the third quarter 2001. Cushman expects the District to hold first place in this category for the next 18-24 months.

Also, despite decreases in demand, absorption rates and leasing activity, average Class A rental rates increased by 3% to $34.46 per-sf. “We’ve heard [the DC market] is recession-proof,” Keeton notes. “While that may or may not be true, it certainly weathers the storm better than any other market for several reasons: primarily because of federal spending in the area, and the diversified business sectors.” The report also notes two significant occurrences that effected the market: a resurgence of interest in the District after rapid growth of the high-tech industry in the outlying suburbs; and Vornado Realty trust’s acquisition of Charles E. Smith Commercial Realty, which makes the company the area’s largest commercial property owner.

Want to continue reading?
Become a Free ALM Digital Reader.

Once you are an ALM digital member, you’ll receive:

  • Unlimited access to GlobeSt and other free ALM publications
  • Access to 15 years of GlobeSt archives
  • Your choice of GlobeSt digital newsletters and over 70 others from popular sister publications
  • 1 free article* every 30 days across the ALM subscription network
  • Exclusive discounts on ALM events and publications

*May exclude premium content
Already have an account?

NOT FOR REPRINT

© 2024 ALM Global, LLC, All Rights Reserved. Request academic re-use from www.copyright.com. All other uses, submit a request to [email protected]. For more information visit Asset & Logo Licensing.

GlobeSt

Join GlobeSt

Don't miss crucial news and insights you need to make informed commercial real estate decisions. Join GlobeSt.com now!

  • Free unlimited access to GlobeSt.com's trusted and independent team of experts who provide commercial real estate owners, investors, developers, brokers and finance professionals with comprehensive coverage, analysis and best practices necessary to innovate and build business.
  • Exclusive discounts on ALM and GlobeSt events.
  • Access to other award-winning ALM websites including ThinkAdvisor.com and Law.com.

Already have an account? Sign In Now
Join GlobeSt

Copyright © 2024 ALM Global, LLC. All Rights Reserved.