Washington DC November 2021 Key Take Aways
- DEREK FORD / Washington DC Economic Partnership: ICSC “Here We Go” anticipates around 6,400 attendees. $9 million in grants for 8 restaurants in ward 7 and 8. You must have prior restaurant experience and must build 12-18 month after grant is awarded. Awards will go out December 6 Awards .
- MARC TASKER / NAI KLNB: On track to break records through the retail and industrial portions of the portfolio. There is too much money in the market and too little product. Land supply is strained in Prince Georges County and around Dulles.
- HARRY DEMATATIS / NAI KLNB: Larger firms have been slower to return to their spaces. Though there is a push to $12-14 and even $15 triple net rents.
- CHRIS LEBARTON / CoStar Group: What happens to Class B+C spaces? These spaces are maintaining use through public + private partnerships. Affordability will be a large challenge in the market otherwise with full demolition and ground up projects on the market. CoStar has a new Covid-safe pizza lounge, certainly an amenity guests should check out!
- RICK SCHNEIDER / Cherry Bekaert: Best year in 20 years. Cherry Bekaert invested and grew their consultancy arm greatly this year. Taxes have been hard to follow this year with the two bills in Congress. The turbulence in writing the Build Back Better legislation has made advising clients harder . In 2025 the Estate Tax Exemption will likely sunset and not be renewed. Landlords of smaller residential units are suffering from poor cash flow. Many are seeking retention credits program. This will likely continue for another year.
- ANITRA ANDROH / Nelson Mullins: Southeastern USA was a wild market this year. This was due in part to open government, policy and legal restrictions in the region being conducive to investment, leading to closing of deals almost every day. The year was phenomenal, however, how long can this growth be sustained is the question.
- JOHN FARRELL / Cushman & Wakefield: Real volume is up however leasing is challenging. Valuations is very busy. Disputes regarding tax appeals have increased. Some DC tax assessments have been reduced by 25%. There is a lot of office product in dispute. Not much is given in concessions when leasing a space. Deferred maintenance costs are also only considered for one fiscal year.
- EMILIANO MORALES FLORES / Edge: Edge is Small local firm with an office in Pittsburgh. Rent has not gone down even with a drop in leasing. However, there are leases with other concessions which is accumulating a net loss in some cases.
- WILLIAM SULLIVAN: The City of College Park has a new quantum computing company IONQ which IPO’ed in October with a current market cap of $5 billion. Part of the initiatives by the state and private industry to generate tech corridor in Maryland. $20 million given by the University of Maryland to the building of a National Quantum research Center. . . there will be data center needs for scaling the cloud computing. Large data sets from diverse sectors of Industry will also be needed to scale applications. Mapping Company PLANET, an ESRI Partner, will be acquired soon by same technology group that brought IONQ to market, DMY technology group.
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