Bad News: Tenants delay decisions, sit on sidelines.Good News: Metro DC economy adds 44,600 jobs in the 12 months ending August 2008.
WASHINGTON, DC--Jones Lang LaSalle reports that a lame duck Administration, coupled with uncertainties regarding the upcoming presidential and congressional elections and the worst financial and economic crisis in a generation, clouded market conditions throughout the metropolitan Washington region at the end of the third quarter of 2008.
John Sikaitis, (top left photo) senior vice president, communications, Jones Lang LaSalle, notes tenants delayed decisions and sat on the sidelines, leading to slower leasing activity, tepid tour volume, extended deal 
length and negotiations and a heightened incident of renewals.
While market conditions slowed to a standstill as conservatism swept through the office market, job growth in the region was resilient.
Although the country has lost 760,000 JOBS over the past nine months, job growth in the DC region has actually increased from several months ago as the cushion of the government and its contractor base allowed the Metro DC economy to add 44,600 jobs in the 12 months ending August 2008.
Additionally, unemployment remained two full percentage points below the national average at 4.1 percent.
length and negotiations and a heightened incident of renewals.While market conditions slowed to a standstill as conservatism swept through the office market, job growth in the region was resilient.
Although the country has lost 760,000 JOBS over the past nine months, job growth in the DC region has actually increased from several months ago as the cushion of the government and its contractor base allowed the Metro DC economy to add 44,600 jobs in the 12 months ending August 2008.
Additionally, unemployment remained two full percentage points below the national average at 4.1 percent.
Over the past six months, as the national economy slowed, Metro DC's job growth accelerated, nearly doubling the 22,000 jobs created in the twelve months ending March 2008 by reaching its current level of 44,600 jobs.
The job creation should fuel additional office sector requirements in the first half of 2009 even as most metropolitan areas around the country have recently experienced contracting payrolls and occupancy declines.
Despite significant job creation, an aggressive development cycle in all three jurisdictions coincided with the slowdown in demand, shifting leverage to tenants in the vast majority of product types and locations over the past few quarters, which will undoubtedly linger for the coming quarters into the latter part of 2009, at a minimum.
For more information, please contact:
The job creation should fuel additional office sector requirements in the first half of 2009 even as most metropolitan areas around the country have recently experienced contracting payrolls and occupancy declines.
Despite significant job creation, an aggressive development cycle in all three jurisdictions coincided with the slowdown in demand, shifting leverage to tenants in the vast majority of product types and locations over the past few quarters, which will undoubtedly linger for the coming quarters into the latter part of 2009, at a minimum.
For more information, please contact:
John Sikaitis, 202.719.5839, John.Sikaitis@am.jll.com
Scott Homa, 202.719.5732, Scott.Homa@am.jll.com
Scott Homa, 202.719.5732, Scott.Homa@am.jll.com
Contacts:
(Bottom right photo, Tianning Temple with pagoda behind it, in Changzhou.)
