Peoples Bank Is Expanding Into The DMV. What Potential Does It See In The Area?

The area of Washington, D.C., Maryland and Virginia, known as the DMV, has always been a major commercial real estate development hub. From massive megaprojects in D.C. to major mixed-use developments in Prince George’s County, Maryland, this year is shaping up to be no different. 

“I have been a part of the DMV economy for 23 years, through the recession of 2008 to Covid and beyond, and I have seen tremendous growth,” said Shafiul Alam, Peoples Bank managing director of commercial and industrial banking for D.C., Maryland and Virginia. “It is, in my opinion, pretty much recession-resistant.” 

Alam’s belief in the strength of the DMV economy is shared by many of his colleagues at Peoples Bank. Established in 1902, Peoples Bank, which has more than $400M in loans in the mid-Atlantic, broke into the DMV in 2021 and is eager to expand its business throughout the region. 

Bisnow spoke with Ala, Phil Heldrich, senior vice president of commercial real estate banking, and Jared Harrell, vice president of commercial real estate banking, to get their thoughts on some of the hottest topics impacting DMV CRE, from affordable housing and industrial development to the core challenges facing the industry today. 

Bisnow: Where are the strengths and opportunities in the DMV economy today? 

Alam: It is heavily driven by three industries: construction, government contracting and not-for-profits. Across the board, the economy is growing right along with the local population. Inflation and tariffs hindered that growth somewhat on the commercial and industrial side, but if you compare the DMV to other parts of the U.S., you can clearly see its strength. 

Heldrich: As Shafiul said, the area is uniquely recession-resistant. Because this is the seat of government, there are always, to a certain degree, jobs and opportunities in the area, and we are in an excellent position to take advantage of them as they arise. 

Bisnow: Affordable housing is a major topic across the country and particularly in the DMV. What are you seeing in the market right now? Are steps being taken to close the continued housing gap? 

Harrell: At Peoples Bank, we’re committed to giving back to the community, and one of the ways we're doing that is through working with developers and investors who are bringing more affordable housing to the area. D.C. proper has done a lot to close the gap, but they still have approximately 40,000 people on the waitlist for vouchers. 

One challenge for smaller developers is that while they may receive private or government funding, they still need to secure bank loans. This is where we can step in to help them secure financing. 

Heldrich: One of the biggest issues surrounding affordable housing is the underlying cost of real estate. Incentive programs, like what D.C. offers with vouchers, are definitely necessary to make affordable housing work. We feel very strongly that as an institutional lender in this market, it’s important for us to be involved in affordable housing, and we are always looking for those opportunities.

Bisnow: What are some of the most popular CRE asset classes in development right now, and what is driving their demand?

Heldrich: Right now, the highest demand is for housing. This is why we’re doing a lot of land development work in the area, with a focus on renovation, rehabilitation and repositioning of multifamily projects.

Harrell: We’ve also seen a demand for refinancing for commercial retail, including shopping centers and mixed-use developments. 

Bisnow: What are you seeing in terms of demand in the industrial sector? 

Harrell: We’re seeing a lot of activity, some of which is fueled by the increased data center demand, particularly in Northern Virginia. Maryland also has a strong industrial market near the airport and in Prince George's County, where there's still more available land. D.C. may have some industrial development challenges just due to where it is located, transitwise, as opposed to areas of Richmond and Virginia that might have a little easier ingress and egress to I-95.

Industrial vacancy rates vary depending on where in the DMV you’re looking, but overall, we’re seeing a lot of competition for local industrial deals. 

Bisnow: How is Peoples Bank working to support the DMV CRE industry in 2026? 

Heldrich: We’re very bullish on this market, and while we’re seeing some $100M projects, we’re also seeing a lot of $15M projects, and that’s perfect for us. The big-money center banks tend to focus on larger projects and don’t always serve noninstitutional developers. This is where community banks like Peoples can come in and bring these projects to life. 

Alam: We’re building a strong footing in this economy. When we acquired Premier Bank, it had virtually no commercial or industrial exposure. We grew Peoples Bank mid-Atlantic portfolio to $400M, driven by our leverage within the community. We have a deep respect for the local businesses that drive this economy and look forward to partnering with them and supporting their goals. As we deepen our roots across the mid-Atlantic, we're looking to work with middle-market and mid-corporate companies who believe banking is about more than transactions — it's about relationships.

This article was produced in collaboration between Peoples Bank and Studio B. Bisnow news staff was not involved in the production of this content.

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