The strategy does not differ too much from last year's. In fact, in 2005, the company built one million sf of commercial space contained in 21structures in the region.
St. John's decision to make this large addition to the stable of metroplex office assets is based on demand. The company's 11-million-sf portfolio of flex, warehouse, office and retail space boasted an aggregate occupancy level of 97% by the end of the fourth quarter of 2005.
General market statistics paint a similar picture. According to Cushman & Wakefield, the office vacancy rate in the District was 6%, while Northern Virginia reported 8.9%. In Baltimore, as per Delta Associates, the Q3 vacancy rate was 10.7%.
"Leasing activity in all sectors of the commercial real estate market remains brisk, and we're building new product to keep pace with the unrelenting demand," says Edward A. St. John, president and founder of St. John. "We see no let-up in this demand on the horizon, due to a combination of factors including relatively low interest rates, the growth of the defense contracting industry in the local area and the rapid creation of new businesses."
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