Académique Documents
Professionnel Documents
Culture Documents
OFFICE SNAPSHOT
WASHINGTON, D.C.
A Cushman & Wakefield Research Publication
Q1 2013
ECONOMIC OVERVIEW
The Districts unemployment rate held steady at 8.6% from January to February and posted net growth of 3,300 jobs; 4,700 private sector jobs were added, while public sector payrolls were cut by 1,400. With sequestration currently taking effect, additional government job losses will hinder any significant growth over this year, yet signs point to a stabilizing private sector and increased economic clarity.
Government Pension Fund made its entrance into the U.S. market, purchasing a 49.9% interest stake in a portfolio of TIAA-CREF owned properties along the East Coast for $1.2 billion, two of which were in D.C. (the Evening Star Building and Franklin Square).
OUTLOOK
Vacancy is expected to increase further this year, but current concession levels coupled with a growing number of options in existing buildings will make it hard for tenants to resist taking advantage of a softer market, despite tepid first quarter demand. STATS ON THE GO
Q1 2012 Overall Vacancy Direct Asking Rents (psf/yr) YTD Leasing Activity (sf) 12.2% $50.76 1,266,873 Q1 2013 13.2% $51.65 878,579 Y-O-Y 12 MONTH CHANGE FORECAST 1.0pp 1.7% -30.6%
LEASING ACTIVITY
6.0 5.0 4.0 3.0 2.0 1.0 0.0
msf
4.5
5.8
4.8
5.2
2009
2010
2011
LEASING ACTIVITY
2012
2013 YTD
For more information, contact: Paula Munger, Regional Research Director 703 448 1200 paula.munger@cushwake.com
The market terms and definitions in this report are based on NAIOP standards. No warranty or representation, express or implied, is made to the accuracy or completeness of the information contained herein, and same is submitted subject to errors, omissions, change of price, rental or other conditions, withdrawal without notice, and to any special listing conditions imposed by our principals. 2013 Cushman & Wakefield, Inc. All rights reserved.
0.9
WASHINGTON, D.C.
SUBMARKET INVENTORY OVERALL VACANCY RATE 11.3% 11.7% 14.1% 11.2% 11.0% 17.8% 16.7% DIRECT VACANCY RATE 10.9% 10.6% 12.4% 9.5% 7.0% 17.3% 16.2% YTD LEASING UNDER ACTIVITY CONSTRUCTION/RE NOVATION 15,837 247,429 525,055 59,527 9,527 11,039 10,165 752,477 524,830 290,237 0 98,000 0 0 YTD CONSTRUCTION/ RENOVATION COMPLETIONS 0 67,906 196,181 0 0 0 0 YTD DIRECT NET ABSORPTION YTD OVERALL NET ABSORPTION OVERALL WTD. AVG ALL CLASSES GROSS RENTAL RATE* $47.52 $53.87 $51.97 $41.52 $35.90 $50.01 $44.08 DIRECT WTD. AVG. CLASS A GROSS RENTAL RATE* $58.12 $63.38 $65.29 $52.45 $48.91 $51.16 $47.51
Capitol Hill / NoMa East End CBD West End / Georgetown Uptown Southwest Capitol Riverfront
TOTALS
878,579
1,665,544
264,087
116,948
38,421
$50.58
$60.36
SUBMARKET West End / Georgetown CBD CBD Capitol Hill / NoMa Capitol Hill / NoMa Southwest East End East End CBD SUBMARKET East End East End East End SUBMARKET East End Capitol Hill / NoMa Capitol Hill / NoMa CBD SUBMARKET East End Capitol Hill / NoMa East End
TENANT Patton Boggs LLP Federal Reserve Board Pillsbury Winthrop Shaw Pittman LLP Van Scoyoc Associates GSA Federal Maritime Commission Lockheed Martin American Hospital Association Wells Fargo Analysis Group BUYER Lone Star Funds Jordache Enterprises Clarion Partners MAJOR TENANT Covington & Burling LLP N/A N/A Pillsbury Winthrop Shaw Pittman LLP MAJOR TENANT Arnold & Porter LLP N/A N/A
BUILDING CLASS B A A A B B A A A PURCHASE PRICE / $PSF $71,782,500/$377 $104,300,920/$607 $98,500,000/$733 COMPLETION DATE Q2 2013 Q3 2013 Q4 2013 Q1 2015 COMPLETION DATE Q4 2015 Q2 2014 Q3 2014
SQUARE FEET 206,000 201,468 105,687 84,888 62,438 52,227 42,000 35,628 30,954 SQUARE FEET 190,643 171,920 134,448 BUILDING SQUARE FEET 524,830 345,000 278,817 168,140 BUILDING SQUARE FEET 478,000 340,652 112,000
Significant Proposed Projects 601 Massachusetts Avenue NW 1150 1st Street NE 900 G Street NW
For more information, contact: Paula Munger, Regional Research Director 703 448 1200 paula.munger@cushwake.com
The market terms and definitions in this report are based on NAIOP standards. No warranty or representation, express or implied, is made to the accuracy or completeness of the information contained herein, and same is submitted subject to errors, omissions, change of price, rental or other conditions, withdrawal without notice, and to any special listing conditions imposed by our principals. 2013 Cushman & Wakefield, Inc. All rights reserved.