WASHINGTON, D.C. — Office-using employment in the Washington, D.C., metro will continue to expand in 2008, but at a more modest rate than in recent years, easing space demand, according to the 2008 National Office Repo
rt by Marcus & Millichap, the nation’s largest real estate investment services firm. Rent growth will remain strong due to limited space availability, asking and effective rents are each projected to surge 8 percent. (Photo of College Park, MD Metro Rail Station at left)
Also included in the report is the firm’s annual National Office Index (NOI), a snapshot analysis that ranks 43 office markets based on a series of 12-month forward-looking supply and demand indicators. Washington, D.C., moves down four places this year to No. 6.
“Properties in close-in suburbs become more valuable every year, and the redevelopment of old assets in areas such as College Park and Falls Church could provide significant returns for patient investors,” says Ramon Kochavi, regional manager of Marcus & Millichap’s Washington, D.C., office.
Following are some of the most significant aspects of the Washington, D.C. Office Research Report:
· Employers will create 25,000 new positions in 2008 for a 0.8 percent growth.
· The marketwide stock of competitive office space will expand by 6.8 million square feet.
· Vacancy is forecast to end the year at 9.9 percent.
· Asking rents are expected to increase 5.1 percent to $37.10 per square foot, while effective rents advance 4.8 percent to $32.73 per square foot.
· Class B and Class C assets may be well-positioned to benefit from the next wave of new business startups that is likely to transpire when economic growth begins to pick back up again.
In the 2008 NOI, Seattle moved up three places to secure the No. 1 spot, surpassing last year’s leader New York City, which slipped to No. 2. Boston moved up two spots to No. 3, while San Francisco jumped 12 place
s to the No. 4 position. Los Angeles slipped two spots, coming in at No. 5.
· The marketwide stock of competitive office space will expand by 6.8 million square feet.
· Vacancy is forecast to end the year at 9.9 percent.
· Asking rents are expected to increase 5.1 percent to $37.10 per square foot, while effective rents advance 4.8 percent to $32.73 per square foot.
· Class B and Class C assets may be well-positioned to benefit from the next wave of new business startups that is likely to transpire when economic growth begins to pick back up again.
In the 2008 NOI, Seattle moved up three places to secure the No. 1 spot, surpassing last year’s leader New York City, which slipped to No. 2. Boston moved up two spots to No. 3, while San Francisco jumped 12 place
s to the No. 4 position. Los Angeles slipped two spots, coming in at No. 5. For a copy of Marcus & Millichap’s National Office Report and the complete NOI rankings, visit http://www.marcusmillichap.com/.
CONTACT:
Stacey Corso
Public Relations Manager
Marcus & Millichap
2999 Oak Road
Suite 210
Walnut Creek, CA 94597
Office: 925.953.1716
Mobile: 415.672.6460
Fax: 925.953.1710
http://www.marcusmillichap.com/
Stacey Corso
Public Relations Manager
Marcus & Millichap
2999 Oak Road
Suite 210
Walnut Creek, CA 94597
Office: 925.953.1716
Mobile: 415.672.6460
Fax: 925.953.1710
http://www.marcusmillichap.com/
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