The DC multifamily market is setting a record for absorption every single quarter these days. Despite apartments opening at a breakneck pace, absorption has climbed even higher in every sector.
Bisnow attended Delta Associates’ 19th annual Awards for Excellence last week and learned all about it. Delta Associates CEO David Weisel, in his first awards appearance as CEO since founder Greg Leisch left in February, told the crowd that DC gained 72,300 jobs in the past 12 months, a 75% increase over its historical average.
Over the next five years, the region should add 47,300 new jobs per year, well over its typical rate of growth. Those factors should help apartment absorption keep pace with deliveries over the next few years.
The most encouraging sign for the apartment industry—not necessarily for apartment renters—is rent growth. For years, rents have been flat as the recovery has stayed slow and more apartments have come on line.
But in Q2, rents increased 3.6% over Q2 2014, an encouraging sign. But the rate of construction won’t slow down: more than 10,000 units will start construction by the end of this year, and 14,200 more will deliver in the next 12 months. 15,000 more apartments are undergoing renovations.
Delta Associates SVP and director of the multifamily practice William Rich says “the 36-month development pipeline has mercifully plateaued.” Thank goodness, because Delta projects absorption to go in the tank in 2018, when many forecasters think the economy takes a downturn.
But we were also there for the awards. Here’s the full list of DC winners:
Most innovative multifamily developer: Greystar
Best lease-up pace for a suburban MD apartment: Mallory Square (Woodfield Investments, Bozzuto)
Best lease-up pace for a NoVa apartment: Virginia Square Towers (Dittmar Co)
Best lease-up pace for a DC apartment: Elevation at Washington Gateway (MRP Realty, Bozzuto)
Best Interior Design: The Shelby, Alexandria (Insight Property Group, RD Jones & Associates)
Best apartment renovation: Delray Tower, Alexandria (UDR, Lessard Design)
Best adaptive reuse: The Mission, DC (Alturas Real Estate Interests, Adler Financial Group, Eric Colbert & Associates, Vantage Management)
Best neighborhood impact apartment: Persei at Pike & Rose, North Bethesda (Federal Realty Investment Trust, Design Collective, Street Works Studio, Greystar)
Best low-rise apartment: Avalon Falls Church (AvalonBay, The Preston Partnership)
Best high-rise apartment: Vita Tysons Corner Center (Macerich, Kettler, Shalom Baranes Associates)
Best apartment community: The Woodley (above), DC JBG, Cooper Carry, VOA, David M. Schwarz Architects, Bozzuto, TIAA-CREF, JPMorgan)
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