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AcquisitionsDistrict of ColumbiaMixed-UseMultifamilyRestaurantRetailSoutheastVirginia

Jamestown Unloads Stake in Georgetown Renaissance Portfolio in DC to Acadia Realty Trust

by John Nelson

WASHINGTON, D.C. AND ALEXANDRIA, VA. — Atlanta-based Jamestown has sold its stake in The Georgetown Renaissance Portfolio, a collection of 22 boutique retail and residential buildings in Washington, D.C.’s Georgetown neighborhood and a lone property in nearby Alexandria, Va. New York-based Acadia Realty Trust, already a minor owner of the portfolio, purchased Jamestown’s stake for an undisclosed price. Eastdil Secured represented Jamestown in the transaction. Jamestown originally acquired its interest in The Georgetown Renaissance Portfolio in 2011. The firm had previously sold off a portion of its interest to EastBanc, which used acquisition funds from Acadia Realty Trust, back in 2016. The portfolio is now home to several retail and design brands such as B&B Italia, Poliform, Molteni, Lululemon, Patagonia and Design Within Reach.

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District of ColumbiaMarket ReportsRetailSoutheastSoutheast Market Reports

No Boogeyman in Sight for DC’s Retail Market, Yet

by John Nelson

In the summer of 2012, fresh out of college and starting my career in retail brokerage at KLNB, a seasoned retail broker-turned-developer warned me to consider other careers.  “Retail is dying,” he said. “Why would people go to stores when it’s so easy to order online?” Well, it’s been 12 years since that moment, and I’m still waiting for the retail boogeyman to appear. As I write this, I’m happy to report he hasn’t arrived — and the data suggests he’s nowhere in sight. The Washington, D.C., metropolitan statistical area (MSA) is now in its tightest fundamental position on record due to limited new supply and continued demand from national, regional and franchised concepts.  In the Washington, D.C. market, we have the second-lowest retail square footage per capita among major MSAs, with new retail supply representing just 0.4 percent of total inventory. This places the Capital Region in the bottom quartile of retail real estate inventory growth among national MSAs that have more than 100 million square feet of existing inventory. The result? Retail availability in the D.C. metro has decreased to 4.8 percent (compared to the national average of 4.7 percent), down from 5.1 percent year-over-year and 5.3 percent …

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District of ColumbiaMarket ReportsOfficeSoutheastSoutheast Market Reports

DC Office Market Presents an Opportunity for Reclassification and Innovation

by John Nelson

The Washington, D.C., office market is facing challenging times, marked by unprecedented vacancy rates, dwindling demand and a significant supply-demand imbalance. Within these constraints, the flight to quality trend is reshaping how investors and lenders view office assets and should lead to an inventory reclassification.  The divide between high-quality assets and lesser properties widens almost daily, creating a bifurcated market with fierce competition for quality space. Meanwhile, older, less desirable properties languish, accumulating vacancies as they fail to meet current occupier expectations.  Without intervention, the less desirable properties will continue to drag down the market’s perception, obscuring the success of top-tier spaces with a headline vacancy rate. To contribute to the stabilization of the market, office participants must acknowledge this divide and assess distressed assets not as liabilities, but as opportunities to reset and reclassify properties based on realistic usage and demand. Lenders are central to this process as they control a substantial portion of distressed office stock. After years of extending loans to stave off foreclosure during uncertain times, many are now realizing that relief is unlikely to materialize organically. As a result, foreclosures are already up 121 percent in 2024 year-to-date over 2023 in Washington, D.C. On average, …

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DevelopmentDistrict of ColumbiaMultifamilySoutheast

Akridge, National Development Welcome First Residents to 384-Unit Byron Apartment Community in DC

by John Nelson

WASHINGTON, D.C. — Akridge and National Real Estate Development have begun welcoming residents to The Byron, a 384-unit apartment community in southwest Washington, D.C. The Byron is Phase I of The Stacks, a six-acre mixed-use campus. Upon completion, The Stacks will include 2 million square feet of space, including a hotel, offices, apartments, shops and restaurants. The development team for The Stacks includes Akridge, National Development, Bridge Investment Group, Blue Coastal Capital and institutional funds managed by National Real Estate Advisors. Amenities at The Byron include a 10,000-square-foot Flex gym that features a sauna, recovery room and outdoor workout space, a multi-sport simulator, two rooftop pools, pet spa, serenity garden, TV lounge with an adjoined terrace, chef’s catering kitchen and gathering spaces. Additional conveniences include Capital Bikeshare and bike maintenance stations and an onsite resident market that is scheduled to open this summer, as well as The Passage, a pedestrian-only cobblestone street. According to Apartments.com, the 14-story building offers studios, one-, two- and three-bedroom units ranging in size from 432 to 1,565 square feet. Monthly rents start at approximately $2,230.

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AcquisitionsDistrict of ColumbiaMultifamilySoutheast

Clear Investment Group Acquires 681-Unit Marbury Plaza Apartments in Southeast DC

by John Nelson

WASHINGTON, D.C. — Clear Investment Group has purchased Marbury Plaza, a 681-unit apartment community located in southeast Washington, D.C. The Chicago-based investment firm plans to rebrand the property to Langston Views and upgrade the amenity package to include a new fitness center, onsite convenience store and renovated pools and locker rooms. This is the fifth investment for the buyer’s Clear Opportunities Fund I. The seller and sales price were not disclosed.

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District of ColumbiaSoutheast

US Economy Surpasses Expectations With 256,000 Jobs Added in December

by John Nelson

WASHINGTON, D.C. — The U.S. economy added 256,000 nonfarm payroll jobs in December, according to the U.S. Bureau of Labor Statistics (BLS). This figure exceeds the 155,000 jobs that Dow Jones economists forecasted for the month, according to CNBC. The total caps a year in which U.S. employment grew every month, with a monthly average of 186,000, according to the BLS. The December total surpasses the 212,000 jobs added in November, which the BLS revised down from 227,000. The BLS also revised the October jobs total up from 36,000 to now 43,000. Additionally, the U.S. unemployment rate dipped slightly to 4.1 percent. According to the BLS, the unemployment rate has either been 4.1 percent or 4.2 percent for the past seven months. December’s job creation was concentrated in healthcare (+46,000), leisure and hospitality (+43,000) and government (+33,000). Retail trade added 43,000 new jobs in December, a month after the sector saw net job loss. Employment changed little in other major industries, including construction, manufacturing, wholesale trade, professional and business services and transportation and warehousing.

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District of ColumbiaIndustrialMarket ReportsSoutheastSoutheast Market Reports

Resilient DC Industrial Market Is Growing But Softening as Vacancy Rates Creep Higher

by John Nelson

The U.S. industrial real estate market continues to sustain, with national vacancy rates steadily creeping toward 7 percent (6.8 percent at the time of this writing). Over the past three years, the industrial real estate market continued to set records and became known as the darling asset class within the commercial real estate community. However, the market is showing signs of reversion to historical velocity and vacancy rates. The industrial vacancy rate is steadily climbing in the Washington, D.C., metro area as demand softens for third-party logistics in second-quarter 2024. Vacancies are up to 6.5 percent after reaching an all-time low of 3.8 percent at the end of 2022.  The market remains tight by historical measures. However, normalized leasing velocity, a few large tenant moveouts and reduced demand is expected to provide upward pressure on the vacancy rate in 2025. Subleasing activity trended upward in the past six to 12 months to over 1.3 million square feet. A few examples of large sublets include 393,000 square feet put on the market at Capital Gateway in Brandywine; Builders First Source moved out of 135,000 square feet at Plaza 500 in Alexandria; and in the second quarter, Western Express vacated 102,000 square …

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Affordable HousingCompany NewsDistrict of ColumbiaMultifamilySoutheast

US Justice Department Adds Six Landlords to Rental Price-Fixing Lawsuit

by John Nelson

WASHINGTON, D.C. — The U.S. Justice Department (DOJ), along with 10 state attorneys general, has filed an amended complaint in its antitrust lawsuit against RealPage. The complaint targets six of the nation’s largest property managers, alleging that the companies used RealPage’s pricing algorithms to share sensitive data and coordinate pricing strategies, which the DOJ states resulted in artificially inflated rents. The DOJ stated that the landlords had colluded with one another by directly communicating with competitors’ senior managers about sensitive topics such as rents and occupancy; conducting “call arounds” to discuss sensitive information and pricing strategies; and participating in “user groups” hosted by RealPage, where landlords would allegedly discuss how to modify the software’s pricing methodology as well as their own pricing strategies. The DOJ’s co-plaintiffs are the Attorneys General of California, Colorado, Connecticut, Illinois, Massachusetts, Minnesota, North Carolina, Oregon, Tennessee and Washington. The six landlords included in the amended complaint are Greystar Real Estate Partners LLC; Blackstone’s LivCor LLC; Camden Property Trust; Cushman & Wakefield Inc. (formerly operating independently as Pinnacle); Willow Bridge Property Co. (formerly Lincoln Residential); and Cortland Management LLC (Cortland). Altogether, the six companies manage approximately 1.3 million apartment units across 43 states and Washington, D.C., …

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AcquisitionsDevelopmentDistrict of ColumbiaLeasing ActivityOfficeSoutheast

BXP Purchases 12-Story Office Building in DC, Plans Major Redevelopment

by John Nelson

WASHINGTON, D.C. — BXP, a publicly traded office REIT that was previously known as Boston Properties Inc., has closed on its purchase of 725 12th Street, a 12-story office building in Washington, D.C.’s East End. The Boston-based firm acquired the 300,000-square-foot property for $34 million. The seller was not disclosed. BXP plans to demolish the office building and redevelop the site to make way for a new 320,000-square-foot, Class A office property. The REIT recently signed law firm McDermott Will & Emery to occupy approximately 150,000 square feet across the top five levels of the new office development. Lou Christopher, Jordan Brainard, Rob Copito and Clay Hammerstein of CBRE represented McDermott Will & Emery in the lease negotiations. Evan Behr of JLL represented the landlord. BXP expects to deliver the new office building in late 2028.

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District of ColumbiaMarket ReportsMultifamilySoutheastSoutheast Market Reports

Strong Investment, Rent Growth Signal Strength for DC Multifamily Market

by John Nelson

The multifamily market in the Washington, D.C., metro area has experienced meaningful shifts in 2024, marked by moderate demand, consistent construction and evolving investment patterns. As a major urban hub, D.C. continues to attract both local and out-of-state investors eager to tap into its growing potential.  Out-of-state capital A key trend in the D.C. multifamily market is the strong influx of out-of-state capital. This year, 44 percent of buyers in our DMV (D.C., Maryland and Virginia) listings came from outside the region, drawn by the area’s stability and long-term growth potential. These out-of-market investors often pay a premium over local buyers, keeping deal volume and pricing competitive even amid rising interest rates. This steady inflow of external capital has reinforced the market’s resilience, underscoring the perceived value of D.C. multifamily assets. The demand from out-of-state investors has also provided stability to the market, helping to sustain price levels and liquidity despite macroeconomic headwinds. By bolstering interest in multifamily properties, this capital flow supports continued growth and positions D.C. as a desirable destination for long-term investment.  As this trend persists, the D.C. metro area is likely to remain a focal point for diverse capital sources, ensuring strength and adaptability in its …

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