David Kessler's State of the Market
Some of you have asked about the fact-packed opening remarks from CohnReznick co-managing partner David Kessler (right, with Penzance co-founder Victor Tolkan) at our State of the Market event last week. By popular demand, here are a few of David's big points:
- Office vacancies in the District were up slightly in Q1 from Q4 at 13.8%, from 13.6%.
- DC unemployment remains at 8.6%, though there was a 3,300 net growth in jobs last quarter.
- Only four office buildings traded in Q1 compared to 39 in Q4.
- In the region, 38 office buildings are under construction, consisting of 7.5M new SF, of which 3.5M is pre-leased.
- Apartment vacancy finished 2012 at a "razor-thin" 3.9%, according to Reis--the tightest in over a decade.
- 10,000 units are delivering this year with another 16,000 delivering in 2014.
- REITs own 62,000 apartment units in the region, the highest concentration in any market.