Washington DC December 2020 – Key-Take Aways

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    • Seeing business from people in serious need of recapitalization and restructuring. 
    • Lending activity is on both ends of the spectrum – not just “straight down the fairway” as in the past. 
    • Lots of money on the sidelines waiting to jump – likely about a year out. 
    • Industrial world continues to be “red” hot” with increased pricing as there is no land available. 
    • Not seeing much activity on the 95 corridor, which is unusual. 
    • In the office market B and older buildings are going to get hurt because it is so easy for a tenant to pick up and move out in a newer building. 
    • Everyone is very interested in childcare and safety when returning to a traditional office space. 
    • A lot of activity of people getting out of DC and looking to MD and VA, if possible. 
    • Uncertainty with regard to tax law changes due to the administration change is causing a lot of activity and year end planning. 
    • This uncertainty is prompting client to ask if they should accelerate income this year as they are worried about tax rates going up. 
    • Some clients are working hard to close by year end due to the potential changes to the capital gains tax rate. 
    • Office vacancy rates are pretty high about 14%.  Leasing activity if way down as well and this will continue into 2021. 
    • Seeing some growth in the CBD industry. 
    • Everyone still needs a home for their companies – Zoom has been great, but, the culture of companies is taking a huge hit.
    • Tenants have more leverage than ever before if they are solid financially.