Recently, there have been conflicting reports on the health and state of the multi-family real estate market in the Washington, D.C. region.
According to data from Kettler, one of the largest land developers in the nation and a major commercial real estate player in the D.C. Metro area, rent growth barely topped the 1 percent mark this year. In 2013, the Class A market actually showed a 3 percent decline in rent growth. So, although we are expecting 19,000 new units over the next 12 months, the fact that we have been able to display rent growth in 2014 has been positive nonetheless.
While rent growth is always positive news, the flow of new product currently in the pipeline points to challenging times ahead, at least in the near term. For example, there were 12,000 new units brought to market in 2013, compared to the 19,000 highlighted above. This is a tremendous increase, which is putting further pressure on rent growth and occupancy trends.
One submarket in the D.C. area that will remain an optimistic bright spot is Tysons Corner, which we have highlighted in panel discussions already this year. A main driver of this development is the Tysons Corner Comprehensive Plan Amendment, which aims to make the region home to 100,000 residents and 200,000 jobs.
These are some key insights from the first edition of our new and exclusive quarterly real estate series with Ross Litkenhous, a Principal with SC&H Group. John Lawler, Marketing Research Manager and Pricing Manager at Kettler, joins Ross in this dynamic discussion about key multi-family real estate trends.
Be sure to listen to the podcast below.
For our next quarterly real estate podcast, we are welcoming ideas from our readers or listeners. Please contact us here and leave a note about what you would like to hear in our next podcast.