Search
 

DC Feels Pinch, Withstands Headwinds

WASHINGTON, DC-Panelists confirm that, yes, DC is struggling with lower investment sales and a tight credit market, but fundamentals are strong enough to bear the pressure.

By Erika Morphy | Updated on February 27, 2008

WASHINGTON, DC-Panelists at yesterday’s RealShare provided ample anecdotal evidence that the District and surrounding submarkets are feeling the pinch. They noted–not surprisingly–that investment sales are slowing–dramatically in some areas–and credit markets are ever-more stringent in their requirements to finance deals. Still, the group of local industry luminaries maintained that the District’s unique fundamentals, such as its status as a global capital city and home to the federal government, leave it well-positioned to ride out the storm. The RealShare Conference Series is produced by Real Estate Media, publisher of GlobeSt.com and Real Estate Forum.

“DC is not in a recession,” said Mitchell Schear, president of Vornado/Charles E. Smith. “We are lucky to be in such a vibrant economy” even though it may not be as robust as it has been in previous years, he added.

The signs of a slowdown here, though, have been unmistakable with panelists across many different sessions–10 were held all together–offering opinions based on their own experiences with the market. For instance, Bruce Baschuk, president and founding partner of J Street Development, said he does not believe by year-end 2008 the District will reach even 50% of the investment sales registered in 2007. Dek Potts, senior managing director of HFF, as another example, noted that, according to his reckoning, 31 office sales closed in January 2007. This January, that number was eight.

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.