washington metropolitan area class b apartment market report

82 Pages·2012·4.96 MB·English

WASHI NGTON ME TR OPOLITAN ARE A
CLASS B APAR TME NT MARKET REPORT
THIRD QUARTER 2012
S P O N S O R E D B Y :

By Subscription Only
WASHI NGTON ME TR OPOLITAN ARE A
CLASS B APAR TME NT MARKET REPO RT
THIRD QUARTER 2012
Prepared For Exclusive Use of Subscribers
On September 30, 2012
© Delta Associates, 2012. All rights reserved.
You may neither copy nor disseminate this report. If quoted, proper attribution is required.
Delta Associates publishes reports on commercial real estate markets in the following metro areas:
Baltimore, Chicago, Dallas/Ft. Worth, Denver, Houston, and Washington, DC.
Please see www.DeltaAssociates.com for more information.
S P O N S O R E D B Y :

TABLE OF CONTENTS
1. STATE OF THE NATIONAL AND REGIONAL ECONOMIES

The National Economy .................................................................................. 3
The Washington Area Economy ......................................................................... 13
2. STATE OF THE WASHINGTON METROPOLITAN AREA
CLASS B APARTMENT MARKET

A Snapshot of the Class B Apartment Market ............................................................ 24.
State of the Washington Metropolitan Area Class B Apartment Market .................................... 25
Online Marketing Basics for Multifamily ................................................................ 31
3. WASHINGTON STATISTICAL REPORT

LOW-RISE MARKET INDICATORS
Table 1: Estimated Effective Rent and Stabilized Vacancy Rate for Washington Metro ....................... 35
Table 2: Washington Metro Area ....................................................................... 36.
Table 3: Northern Virginia ............................................................................. 37.

Table 4.: Suburban Maryland ........................................................................... 38.
MID- & HIGH-RISE MARKET INDICATORS
Table 5: Prince George’s County, MD .................................................................... 39
Table 6: Washington Metro Area . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 40.

Table 7: Northern Virginia . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 41.
Table 8: Suburban Maryland and District of Columbia . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 42
4. RENOVATION REPORT

Table 9: Summary of Major Class B Apartment Renovations .............................................. 4.5
5. TRANSACTION REPORT

Table 10: 2011 Apartment Building Sales ............................................................... 53
Table 11: 2012 Apartment Building Sales ............................................................... 55
6. EXPLANATION OF GEOGRAPHIC COVERAGE AND METHODOLOGY

Class B Apartments ................................................................................... 59
Apartment Submarket Maps ........................................................................... 6.1
Photography Credits .................................................................................. 6.2
WASHINGTON METROPOLITAN AREA CLASS B APARTMENT MARKET REPORT | THIRD QUARTER 2012
TEAM
MULTIFAMILY PRACTICE TEAM
CONDOMINIUM PRACTICE:
Senior Vice President, Condominium Practice Leader William E. L. Rich 7.03-535-354.5
Senior Associate Steven Reilly
APARTMENT PRACTICE:
Senior Vice President, Apartment Practice Leader A. Grant Montgomery 7.03-535-354.2
Senior Vice President Alyson Bode
Senior Associate Maeve Gallagher
Senior Associate Steven Reilly
EDITOR AND CHIEF EXECUTIVE:
Gregory H. Leisch, CRE 7.03-8.36.-57.00
OF COUNSEL, ECONOMICS:
Dr. Stephen S. Fuller 7.03-993-318.6.
MID-ATLANTIC MULTIFAMILY TEAM
MULTIFAMILY SALES:
Senior Vice President, Director Dean Sigmon 301-8.96.-908.9
Senior Vice President, Director Robin Williams 301-8.96.-907.0
Senior Associate Justin Shay 301-8.96.-908.2
MID-ATLANTIC LEADERSHIP:
President Eric Mockler 202-7.7.5-7.020
Senior Vice President David Popp 301-8.96.-904.8.
Managing Senior Vice President Ray Hite 301-8.96.-9023
Although the information contained herein is based on sources which Delta Associates (DA) and Transwestern (TW) believe to be reliable, DA
and TW make no representation or warranty that such information is accurate or complete. All prices, yields, analyses, computations, and
opinions expressed are subject to change without notice. Under no circumstances should any such information be considered representations
or warranties of DA or TW of any kind. Any such information may be based on assumptions which may or may not be accurate, and any such
assumption may differ from actual results. This report should not be considered investment advice.
WASHINGTON METROPOLITAN AREA CLASS B APARTMENT MARKET REPORT | THIRD QUARTER 2012
QUARTERLY REPORTS AVAILABLE
MULTIFAMILY MARKET
MID-ATLANTIC CLASS A APARTMENT MARKET REPORT
Market Coverage: Washington Metro, Baltimore Metro, Philadelphia Metro
A comprehensive report on apartment market conditions, focusing on the following indicators:
• Analysis of the national and regional economies • For the Washington and Baltimore Metros additional data
• Regional condo market summary include:
• Key market statistics for 47 submarkets and • Pipeline of planned projects and those under construction
regional totals for: • Class A multifamily building and land sales
• Current rents and rent change
• Vacancy
• Concessions
Additional indicators analyzed in the First Quarter and Mid-Year reports:
• First Quarter Report: Market-maker survey on capitalization • Mid-Year Report: Comparison of median revenue, expense, and
rates, hard & soft development costs, investment posture, net operating income data for the USA and Washington MSA.
thoughts on the economy, and more.
WASHINGTON METROPOLITAN AREA CLASS B APARTMENT MARKET REPORT
A comprehensive report on apartment market conditions, focusing on the following indicators:
• Analysis of the national and regional economies • Concessions
• Key market statistics for 30 submarkets and regional • Renovation information including budget and timetable
totals for:
• Class B apartment building sales
• Current rents and rent change
• Vacancy
Additional indicators analyzed in the Year-End report:
• Year-End Report: Market-maker survey on capitalization rates, investment posture, thoughts on the economy,
and more.
WASHINGTON/BALTIMORE CONDOMINIUM MARKET REPORT
Market Coverage: Washington Metro and Baltimore Metro
A comprehensive report on condominium market conditions, focusing on the following indicators:
• Analysis of the national & regional economies • Additional data include:
• Regional apartment market summary • Absorption pace
• Key market statistics for 12 submarkets and regional totals • Multifamily building and land sales
for:
• Sales trends for new and resale condos
• Historic condo price changes
• Pipeline trends
Additional indicators analyzed in the Mid-Year and Year-End reports:
• Mid-Year Report: Comparison of median condo expenses in • Year-End Report: Market-maker survey on capitalization
the USA and Mid-Atlantic region rates, investment posture, thoughts on the economy, and
more.
WASHINGTON METROPOLITAN AREA CLASS B APARTMENT MARKET REPORT | THIRD QUARTER 2012
QUARTERLY REPORTS AVAILABLE
COMMERCIAL MARKET
WASHINGTON/BALTIMORE OFFICE MARKET REPORT
Market Coverage: Washington Metro and Baltimore Metro
A comprehensive quarterly report on office market conditions, focusing on the following indicators:
• Analysis of the national and regional economies • Additional data include:
• Metro-level and substate area (Northern Virginia, Suburban • Supply/demand analysis
Maryland, District of Columbia) office market summaries • Rental rate and tenant improvement data
• Key market statistics (All Space and Class A Space) for 4.9 • Gross leasing activity
submarkets and regional totals for:
• Deliveries
• Inventory
• Building and land sales
• Net absorption
• Investment returns
• Vacancy
• Cap rate trends
• Construction/renovation
Additional indicators analyzed in the Year-End report:
• Market-maker survey on capitalization rates, hard & soft • Development economics
development costs, investment posture, thoughts on the
• Operating expenses
economy, and more
Special supplements to the report have included:
• Analysis of Federal bailout/stimulus spending
• Impact of stimulus spending on office leasing
• Office rent equilibrium zone study
WASHINGTON/BALTIMORE FLEX/INDUSTRIAL REPORT
Market Coverage: Washington Metro and Baltimore Metro; data is separated into flex/R&D, flex/warehouse, and bulk warehouse product types.
A comprehensive semi-annual report on flex/industrial market conditions, focusing on the
following indicators:
• Analysis of the national and regional economies • Additional data include:
• Regional, metro-level and substate area (Northern Virginia, • Supply/demand analysis
Suburban Maryland, Suburban Baltimore, Center Cities)
• Rental rate data
flex/industrial market summaries
• Gross leasing activity
• Key market statistics (All Space and Newer Space, separated
• Deliveries
by product type) for 19 submarkets and regional totals for:
• Building and land sales
• Inventory
• Net absorption
• Vacancy
• Construction/renovation
Additional indicators analyzed in the Year-End reports:
• Market-maker survey on capitalization rates, investment posture, thoughts on the economy, and more
WASHINGTON METROPOLITAN AREA CLASS B APARTMENT MARKET REPORT | THIRD QUARTER 2012
QUARTERLY REPORTS AVAILABLE
OUTLOOKS
Delta Associates’ Outlook reports contain the following information:
• Economic overview of the regional economy including data on job growth, unemployment, core industry performance and job
growth projections.
• Office market overview including narrative analysis and data on absorption, vacancy, construction, rents, and investment
sales synopses.
• Some reports include analysis of the flex, industrial, and retail markets. See below for details
A sample of each Outlook is available via our website. If you would like to receive each issue via e-mail as it becomes available,
please subscribe to the report at Delta’s website.
PUBLICATIONS
• Chicago Metro Office and Industrial Outlooks
• Dallas/Ft. Worth Metroplex Office and Industrial Outlook
• Denver Metro Office and Flex Outlook
• Houston Metro Office, Retail, and Industrial Outlook
• Washington Metro Housing Outlook
• Washington Metro Retail Outlook
WASHINGTON METROPOLITAN AREA CLASS B APARTMENT MARKET REPORT | THIRD QUARTER 2012