District of Columbia

Jefferson Apartment Group, Fortis Top Out 12-Story Multifamily Development in D.C.

by John Nelson March 20, 2023

WASHINGTON, D.C. — A joint venture between Jefferson Apartment Group and The Fortis Co. has topped out J Coopers Row, a 12-story multifamily project located at 1319 S. Capitol St. SW in Washington, D.C. Upon completion, the development will comprise 312 apartments in one-, two- and three-bedroom layouts. Ranging in size from 474 to 1,260 square feet, the units will feature stainless steel appliances, nine-foot ceilings, plank flooring and in-unit washers and dryers. Amenities at the community will include a rooftop swimming pool, gaming area, fitness center, yoga studio, coworking space, a maker’s studio, dog run, pet spa and 24-hour concierge service. The development is situated one block from the Navy Yard-Nationals Stadium Metro Station and will offer views of the Potomac River. Jefferson Apartment Group and Fortis plan to deliver J Coopers Row in the fourth quarter.

March 20, 2023

District of Columbia Southeast

US Economy Added 311,000 Jobs in February, Exceeding Estimates from Economists

by John Nelson March 10, 2023

WASHINGTON, D.C. — Nonfarm employment in the United States rose by 311,000 jobs in February, according to the U.S. Bureau of Labor Statistics (BLS). This number marks a slowdown from January, in which 504,000 jobs were added to the economy, but surpassed expectations from Dow Jones economists who estimated that the economy would add 225,000 jobs in February, according to CNBC. (The January jobs total was revised down by 13,000 jobs, from 517,000 to 504,000.) The unemployment rate also experienced a slight elevation in February, reaching 3.6 percent, a 20-basis-point increase. Long-term joblessness accounted for 17.6 percent of overall unemployment, remaining relatively unchanged from previous months. Leisure and hospitality, retail, government and healthcare experienced notable job gains. Leisure and hospitality — though still below its pre-pandemic level of employment by 2.4 percent — added 105,000 jobs. Retail and government added 50,000 and 46,000 jobs, respectively. Declines in employment were observed in the information and transportation and warehousing industries, which saw a collective loss of 47,000 jobs. Carlos Vaz of CONTI Capital projects that the strong jobs reports thus far in 2023 may portend further interest rate hikes by the Federal Reserve. “Despite the decrease in job growth from the previous …

March 10, 2023

Company News District of Columbia Maryland Multifamily Southeast Virginia

KLNB Acquires Edge Commercial Real Estate Brokerage Firm

by John Nelson February 23, 2023

WASHINGTON, D.C., AND ROCKLEDGE, MD. — KLNB has acquired Edge Commercial Real Estate, a Rockledge-based brokerage with offices in Maryland, Virginia and Washington, D.C. The move increases the size of the Washington, D.C.-based commercial real estate brokerage firm by 20 percent and serves as KLNB’s entry into the multifamily brokerage arena. KLNB is adding 32 total employees, 18 of which are brokers who specialize in multiple facets of office, industrial, tenant representation and multifamily investment sales. Six of the brokers will be immediately installed as principal partners at KLNB. “The acquisition of Edge fits perfectly in our timeline for smart and disciplined progression,” says Marc Menick, president of KLNB. “By acquiring Edge, we will be able to do virtually everything we’re already known for, but at an even higher level and a wider reach. And in the case of multifamily, this opportunity brings the KLNB customer experience to a whole new sector that we have wanted to approach for some time.” Additionally, KLNB will fold Edge’s property management division, which oversees a 1 million-square-foot portfolio, into its KLNB Asset Services platform, a joint venture between KLNB and Divaris Real Estate. Terms of the transaction were not disclosed.

February 23, 2023

District of Columbia Southeast

US Economy Added 517,000 Jobs in January, Nearly Tripling Expectations From Economists

by John Nelson February 3, 2023

WASHINGTON, D.C. — Total U.S. nonfarm payroll employment increased by 517,000 in January, while the unemployment rate fell to 3.4 percent, according to the U.S. Bureau of Labor Statistics (BLS). The monthly figure nearly triples the estimate from Dow Jones economists of 187,000 jobs, according to CNBC. Additionally, the outlet reports that the January unemployment rate is the lowest jobless level for the U.S. economy since May 1969. Just like the December report, the leisure and hospitality sector was the leading job creator in January with 128,000 new jobs. This surpasses the monthly average for the sector in 2022 of 89,000 jobs. Despite the recent gains, the leisure and hospitality industry still falls below its pre-pandemic employment level by 2.9 percent, or 495,000 jobs, according to the BLS. Government added 74,000 jobs in January, led by state government education with 35,000 new jobs. The BLS attributes the increase to the return of University of California workers after their strike ended in December. Other notable gains were seen in professional and business services (+82,000 jobs), healthcare (+58,000), retail trade (+30,000), construction (+25,000) and transportation and warehousing (+23,000). The BLS also revised its November and December jobs report summaries to the tune …

February 3, 2023

Affordable Housing District of Columbia Market Reports Maryland Multifamily Southeast Southeast Market Reports Virginia

More Affordable Housing Options Needed in Greater D.C. Region, Says Fossi of Enterprise Community Development

by John Nelson February 1, 2023

WASHINGTON, D.C. — In 2019, the Metropolitan Washington Council of Governments issued a report stating that the D.C. region — comprising the city, Northern Virginia and suburban Maryland — needed to add 320,000 more housing units between 2020 and 2030, and that at least 75 percent of this new housing should be affordable to low- and medium-income households. Rob Fossi, senior vice president of real estate development at Enterprise Community Development, says the figure has only climbed in recent years due to macroeconomic and local challenges. “In the three years since that report was issued, this demand has only intensified while supply chain interruptions, interest rate spikes and competing resource challenges precipitated by the COVID-19 pandemic have all been challenges to maintain pace,” says Fossi. Enterprise Community Development, an affiliate of Enterprise Community Partners, is the top nonprofit owner and developer of affordable homes in the Mid-Atlantic with a portfolio spanning about 13,000 apartments that house more than 22,000 residents. The firm is actively developing and preserving affordable housing across the region in order to address the demand, which Fossi says shows no signs of abating anytime soon. “There is little doubt that the demand for quality affordable housing will …

February 1, 2023

Development District of Columbia Multifamily Southeast

Crescent Communities Breaks Ground on 197-Unit Apartment Community in D.C.

by John Nelson January 20, 2023

WASHINGTON, D.C. — Crescent Communities has broken ground on NOVEL 14th Street, a multifamily development located at 2601 14th Street NW in Washington, D.C. Upon completion, the project will feature 197 units in studio, one- and two-bedroom layouts. Amenities at the property will include a Land of a Thousand Hills Coffee & Social location, rooftop pool and clubhouse, ground-level courtyard, fitness center, coworking space and a library. The first residences are scheduled for completion in early 2025. Hord Coplan Macht is serving as architect on the project, with Streetsense providing interior design. Vika Capitol is delivering civil engineering services, Lee and Associates Inc. is providing landscape architecture and J. Moriarty & Associates is acting as general contractor.

January 20, 2023

District of Columbia Restaurant Retail Southeast

NRF: Holiday Retail Sales Rose 5.3 Percent to $936.3B in 2022

by John Nelson January 19, 2023

WASHINGTON, D.C. — The National Retail Federation (NRF) has reported that retail sales during 2022’s November-December holiday season rose 5.3 percent year-over-year, reaching $936.3 billion. Though the number fell short of NRF’s predictions, which anticipated an increase of 6 to 8 percent, it represents an improvement compared with the 4.9 percent average annual holiday sales growth over the previous 10 years. The calculation, based on data from the U.S. Census Bureau, excludes automobiles, gasoline and restaurant sales and defines the holiday season as Nov. 1 through Dec. 31, 2022. “We knew it could be touch-and-go for final holiday sales given early shopping in October that likely pulled some sales forward plus price pressures and cold, stormy weather,” says Jack Kleinhenz, NRF’s chief economist. “The pace of spending was choppy, and consumers may have pulled back more than we had hoped, but these numbers show that they navigated a challenging, inflation-driven environment reasonably well.” According to the Washington, D.C.-based organization, retail sales were down 0.6 percent in December relative to November, but up 5 percent year-over-year. Overall growth for the year met NRF’s forecast, reaching 7 percent. On Wednesday, the United States Department of Commerce reported that retail sales, including automobile, …

January 19, 2023

District of Columbia Market Reports Multifamily Southeast Southeast Market Reports

D.C. Multifamily Remains a Safe Haven for Investment Amid Economic Uncertainty

by John Nelson January 16, 2023

Across the country, investors are facing some difficult hurdles. Rising interest rates, impending economic recession and rising construction costs are making it increasingly difficult for proposed deals to penicl out for investors. These issues, coupled with a swath of non-performing loans that are nearing maturity, have been the first indications we have seen of a bear market in the real estate world, and there are no signs of improvement in the near future. In times of uncertainty, we often see investors adhere to a conservative approach to investment, which normally means increased focus on core markets and assets. One area of focus in which investors have remained bullish is Washington, D.C.’s multifamily market as it continues to thrive, despite turmoil in the larger U.S. economy. Developers broke ground on new multifamily product in excess of 4,000 units for the fourth consecutive quarter, a first for the D.C. market. Multifamily sales volume has not quite matched the bull market of 2021; however, sales in 2022 still outpace most years in the metro’s history. Whether it’s construction on ground-up development of multifamily product, or the purchase of existing multifamily product, the D.C market has not shown any signs of slowing down. For …

January 16, 2023

District of Columbia Industrial Market Reports Southeast Southeast Market Reports Virginia

Industrial, Warehouse Product Remains Tight Throughout Northern Virginia

by John Nelson January 9, 2023

Sustained leasing velocity for industrial/warehouse space in the Northern Virginia market, combined with the nearly insatiable demand for data center product, is contributing to developers repurposing existing business communities with this asset class to support demand, as well as companies expanding their geographic footprints into suburban Maryland and Central Virginia to secure space. This trend could be pivoting slightly due to the recent slowdown in leasing activity both locally and nationally as it relates to rising interest rates, the prospects for a looming recession and the possible end of a prolonged real estate cycle. The vacancy rate for industrial/warehouse space in the region currently stands at just over 2 percent. In the last quarter, the Northern Virginia industrial market experienced the largest pipeline in its history with more than 1 million square feet of space delivered, with nearly 5 million square feet of space in the development pipeline. The largest projects are contained within Stafford County as land in Loudoun and Fairfax counties has become unaffordable, or simply unattainable. Triple-net asking rents reached another all-time high of $12.45 per square foot in the third quarter, aided in part by these new deliveries. New space remains scarce and commands a premium, …

January 9, 2023

District of Columbia Southeast

US Economy Added 223,000 Jobs in December With Leisure and Hospitality Sector Leading the Way

by Jeff Shaw January 6, 2023

WASHINGTON, D.C. — Total U.S. nonfarm payroll employment increased by 223,000 in December, while the unemployment rate fell to 3.5 percent, according to the U.S. Bureau of Labor Statistics (BLS). The leisure and hospitality industry added 67,000 jobs, leading all employment sectors. The latest employment figures released this morning beat expectations. Economists surveyed by Dow Jones had estimated the U.S. labor market grew by 200,000 jobs in December. Meanwhile, average hourly earnings for all employees on private nonfarm payrolls rose by 0.3 percent in December. Over the past 12 months, average hourly earnings have increased by 4.6 percent, coming in below the 5 percent estimate, an indication that inflation pressures could be easing. In 2022, the leisure and hospitality sector added an average of 79,000 jobs per month, substantially less than the average gain of 196,000 jobs per month in 2021. Employment in the industry remains below its pre-pandemic February 2020 level by 932,000, or 5.5 percent. Healthcare employment increased by 55,000 in December, with gains in ambulatory health care services (+30,000), hospitals (+16,000), and nursing and residential care facilities (+9,000). Job growth in healthcare averaged 49,000 per month in 2022, considerably above the 2021 average monthly gain of 9,000. …

January 6, 2023

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