Washington DC March 2022 Key Take Aways
- BRIAN BALL – NAI KLNB: In the last several months in KLNB there has been an increase in all facets of activity. The office is one of them. Transactions are going very quickly and moving at a monthly rate. Increased activity in closed transactions. A lot of the activities prior to covid had speculative suits on the table. Now built out suites are seeing a lot of activity. Nothing has changed in the rental rate. The only movement is rental abatement. Improvement dollars are a negotiable item as construction pricing differential is near 40% higher.
- CHAD SHUSKEY – WASHINGTON DC ECONOMIC PARTNERSHIP: Next week there will be a city wide meeting for the public to discuss incentives for office based businesses. WED 3:00 reach out to chad.
- DEREK FORD – WASHINGTON DC ECONOMIC PARTNERSHIP: Neighborhood development is occurring in young families and retail in neighborhoods. Ward 3 rock creek will be having an affordable housing meeting. ( part of mayor initiative for new affordable housing in all wards). Capital Beltway had.a meeting for the imminent domain of the Walmart site. Looking to take over the 1.2 million dollar/ yr lease. Hotel tax is at 14.9% with conferences and conventions coming back looking to see this revenue back in.
- MATT GARCELL – CUSHMAN & WAKEFIELD: Brokers are starting to get out into the market. DC is on par with NYC @ 30% back in the office and is picking up from 25% a few weeks ago. A battle between Leadership and employees. Spec suites are flying off the shelves. Tenants just sat at home and let their leases expire. Now they Need a space to plug and play in. With construction costs and supply chains these are in High demand. These are 2-3 yr leases. Concessions. Free rent has double to 2 yrs free rent on a 10 yr lease. 150-160 rent per square foot, indicating Tenants are taking advantage of the soft market and playing with the landlords.
- SAM SHERWOOD – KROLL: Hiring and hard to get talent at middle JR. levels at prices that are super competitive. Hiring young staff is a greater cost than historically (even in the past year)
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