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Real Estate Bisnow (DC)

Multifamily Sigh of Relief?

Congratulations to Brandywine Realty Trust, named 2014 NAIOP Developer of the Year. Read all about it here.

For years, conventional wisdom has warned that the DC region was building multifamily too fast. (It falls on the regular warning spectrum somewhere between look both ways and wait to go swimming after eating.) But thanks to a tidal wave of young renters, it looks like like oversupply worries may soon be in the rear-view.

Delta Associates CEO Greg Leisch says despite the DC region's exuberant multifamily construction, the "tremendous migration of Millennials" is helping demand keep pace. Greg tells us that in the 12 months that ended this past Tuesday, the region absorbed over 13,000 units, compared to the 25-year historical average of about 5,300 per year. One theory, Greg tells us, is that since Baby Boomers are retiring, work-hungry Millennials are coming here to take their jobs. (Which also accounts for why job growth is meager in the region, but that's another story.)

CohnReznick (Field) MDCRE

Greg made these comments moments ago at Delta's annual multifamily awards, where he'll also report that we're not out of the woods completely. "This is the beginning of the end of our supply problem," he tells us, but even high-quality new product can fail if it's not in the right location or lacks the right amenities. Vacancy is still high, too, he says, and the region will still be a bit oversupplied for another two years or so. But the good news is that vacancy has flattened in the past year, compared to rising the last three-and-a-half years. (Here are the Justice Park apartments in Columbia Heights, which just delivered this week.)

Lerner (SmartSpaces3) RDCRE

There's even more good news out there, this time in the condo world. (Here's 3409 Wilson Blvd, a former extended-stay hotel that Goldstar Group and Finmarc Management have just turned into for-sale residential units.) New condo unit prices are up 11.9% in the past 12 months, Greg says, which is three times the rate for new townhomes and single-family homes. His other keys for residential developers, going forward: Selectively accumulate assets, refinance what you've already got, renovate Class-B and C holdings, develop selectively, and set yourself up for the next cycle.

  
  
Brandywine (NAIOP-2) DCRE
Boland (Benefits-Blue) DC
Fidelity National (Get-to-know) DC

Bethesda Booming!
Join Us This Thursday!

From Bethesda (note the symbolic blue skies) to similarly sunny Rockville and Silver Spring, there are big things happening in MoCo. Massive mixed-use projects are in the works, like Bethesda's Lot 31 and The Blairs in Silver Spring, while a county zoning rewrite is coming, as well as the long-awaited Purple Line. That's why we're holding our Bisnow Hot Topix in Montgomery County event next Thursday at the Bethesda North Marriott, where you'll hear from expert panelists like Montgomery County planning director Pam Dunn, Foulger-Pratt prez Brigg Bunker, and Federal Realty local COO Robin McBride, among many others, on where the county is headed. Click here for more info or to sign up.


Last Night at the Willard

We stopped by the long-running NAIOP Maryland/DC Awards of Excellence, where we snapped FOX Architects'—and ladies' man—Bob Fox with colleagues Laura Madge, Marie Moutsos, Melanie Robins, Casey Stewart, Amanda Merrow, and Suzanne Zecchin. FOX won five awards that night.

NAIOP Maryland/DC 2014 president Bob Schofield of Akridge (with Marsh's Susan Smith) tells us there was over 100 submissions for awards this year, close to a record for the ceremony.

Enjoying the night's great—and dry—weather: Gensler's Vaki Mawema, GMMB's Raelynn Olson and Will Taliaferro, Vornado/Charles E. Smith's Gordon Fraley, and Gensler's Erica Farhart.

VA Gold Cup (Oct25) DCRE
BMS (CitySpecific2) DC

Does the State Department's Deal Signal More?

Did the State Department not get the memo about freezing the footprint? Its 54k SF deal at Blake Real Estate's 1800 G St, which Blake announced earlier this week, is an anomaly: one of the bigger new deals in a world where few big deals, let alone government ones, are going down. Blake's Steve Lustgarten (right, who was the in-house landlord rep along with colleagues Neil Simon, Owen Billman, and Steve Solomon) tells us the deal doesn't necessarily signal an uptick in government demand, and that most new public sector deals will continue to be consolidations or tenants taking less space.

The State Department deal puts 1800 G at full occupancy—other tenants include the World Bank and various government agencies. Steve tells us the tenant was attracted to the 600k SF building's large floor plates and proximity to the White House. (Though it seems you can get much closer to the White House simply by hopping the fence.)


WRIT Picks Up Retail

Very few of the recent, headline-making investment sales have been in retail, until now. WRIT announced this week it's purchased the Spring Valley Shopping Center in Northwest DC for $40.5M, in a deal brokered by Transwestern's Joe Friedman and Julian Etches. (They began marketing the deal while still affiliated with Avison Young.) WRIT picks up a center with some of the best demographics in the city—it sits in the affluent Spring Valley neighborhood—as well as one of the highest traffic tenants in the area, anchor Crate & Barrel. WRIT has made three other purchases in 2013, and this one brings its total acquisition figure to about $300M.

Bisnow (Niche-White) HALF

Wanted: Chief DC
Real Estate Reporter

We have the best job in the world for someone interested in Washington commercial real estate and who likes to write. We're hiring a reporter for our DC real estate publication, where you'll get to learn a ton about every project, submarket, and trend; meet all the top players; and go to non-stop cool events. And we'd love to hear from you whether you want to stay forever or do it for at least two years. Our last two reporters took the latter approach, after which we were delighted that they were rewarded for their hard work by being plucked for great jobs in the DC real estate industry. So if you, too, want to work hard (and get some perks along the way), we want to hear from you! Write us.


Join Us for Bisnow's
Power Women of Tech
Evening Celebration!

This month, in a multi-part series in Tech Bisnow, we profiled our selections for the 40 Most Powerful women in tech, and now we're ready to celebrate them at an event on Oct. 15 in Crystal City. These women are the names you need to know from hottest DC-based companies, like Vox Media (here's honoree and VP Alexis Junega), newBrand Analystics, EverFi, SocialRadar, LiveSafe, Augaroo, and Optoro, among many others. Join us next month to recognize the great talent in the DC tech community, and meet the women who are making things happenSign up!


29 Days Until the Top Under 40 Developers / Investors Meet in Miami

The top developers and investors under the age of 40 descend on the Ritz Carlton in South Beach for Bisnow's first annual "Ascent" multi-day summit. See who's attending and apply to be considered for one of the few remaining spots here.


Have a great weekend, y'all. Email chris.baird@bisnow.com

 
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