District of Columbia

Marriott International President, CEO Arne Sorenson Dies at Age 62

by Julia Sanders February 17, 2021

BETHESDA, MD. — Arne Sorenson, president and CEO of Marriott International (NASDAQ: MAR), died on February 15 due to complications from pancreatic cancer. Sorenson was 62. Sorenson became the third CEO in Marriott’s history in 2021. Over his time at Marriott, Sorenson put the company on a strong growth track that included the $13 billion acquisition of Starwood Hotels & Resorts. “Arne was an exceptional executive — but more than that — he was an exceptional human being,” said J.W. Marriott, Jr., executive chairman and chairman of the board. “Arne loved every aspect of this business and relished time spent touring our hotels and meeting associates around the world. He had an uncanny ability to anticipate where the hospitality industry was headed and position Marriott for growth. But the roles he relished the most were as husband, father, brother and friend.” Sorenson was passionate about national and global issues, as he steered Marriott to make significant progress on diversity, equity and inclusion, environmental sustainability and human trafficking awareness. He had to reduce his schedule at the beginning of February to continue his cancer treatments. Stephanie Linnartz and Tony Capuano will continue to oversee day-to-day operations and corporate functions until Marriott’s …

February 17, 2021

Development District of Columbia Office Southeast

Nuveen, Norges Bank Complete $18M Renovation of Franklin Square Office Building in D.C.

by John Nelson February 15, 2021

WASHINGTON, D.C — Nuveen and joint venture partner Norges Bank Investment Management have completed the $18 million renovation of the Franklin Square office building at 1300 Eye St. NW in Washington, D.C. Will Stern, Eli Barnes, Lauryn Harris and Alston Offutt of Avison Young have been the leasing representatives for the 485,000-square-foot building for over 15 years. Washington, D.C.-based architecture firm Hickok Cole designed the renovation, which began in 2020. Some of the new features to the building involve the three-story glass entrance and include contemporary lighting and glass, soft-seating collaboration areas, new modern artwork, an in-lobby barista-operated café and lounge, additional modern security measures, new elevator cabs and elevator mechanical systems. Additional renovations include a 10,000-square-foot conference facility, six conference rooms, breakout areas, a catering kitchen, a 5,000-square-foot fitness facility, an onsite fitness trainer providing classes for building tenants and a bicycle room with bike maintenance stations, lockers, towel service and changing rooms. The building is LEED Gold-certified and features advanced air filtration via the building’s VAV HVAC system using MERV 15 air filters. An events/hospitality manager will be onsite to oversee the new facilities and help coordinate tenant events. The building also features a new mobile app that …

February 15, 2021

District of Columbia Industrial Market Reports Southeast Southeast Market Reports

D.C. Area’s Industrial Market Reports Strong Health Despite Pandemic

by John Nelson February 15, 2021

Nearly three full quarters into the COVID-19 pandemic, no real estate asset class in the Washington, D.C., metro area has shown less macro-level distress than the industrial market. In fact, the industrial market may have actually benefited from the pandemic. Despite the immediate drop in demand and activity that resulted in the second quarter, the metro industrial market has bounced back and posted positive gains in both leasing activity and new construction. No other asset class can claim that in the D.C. area. Much of the industrial activity is centered in Northern Virginia, but Suburban Maryland has remained healthy as well. At the end of the third quarter, the overall vacancy rate for warehouse/logistics space, flex and service center industrial buildings stood at 6.2 percent. Unlike many industrial markets, the Washington, D.C., MSA is a service economy with more than 260 million square feet of space. Early industrial development around the Capital Beltway/Interstate 495 served to support an ever-growing population base driven by the federal government and its contractors. This, however, has changed in the past decade, with high-tech companies entering and dominating the market. Fueling D.C.’s healthy market is its high barrier to entry. Much of the development that …

February 15, 2021

District of Columbia Southeast

Another 793,000 Americans File for First-Time Unemployment Assistance

by John Nelson February 11, 2021

WASHINGTON, D.C. — A total of 793,000 Americans have filed for unemployment assistance through the week ending Feb. 6, the U.S. Department of Labor reported Thursday. The amount of initial jobless claims exceeded the 760,000 figure that economists surveyed by Dow Jones predicted but is a decrease from last week’s revised amount of 812,000. The four-week moving average declined to 823,000 claims, a 33,000 difference from the revised average for the previous four weeks. Continuing claims, for which data lags a week, fell to approximately 4.5 million, which CNBC reports is the lowest total since March 2020.

February 11, 2021

District of Columbia Healthcare Hospitality Industrial Loans Multifamily Office Retail Southeast

MBA: Commercial, Multifamily Borrowing Falls 18 Percent in Fourth-Quarter 2020

by John Nelson February 9, 2021

WASHINGTON, D.C. — Commercial and multifamily mortgage loan originations were 18 percent lower in the fourth quarter of 2020 compared to a year ago, and increased 76 percent from the third quarter of 2020, according to the Mortgage Bankers Association’s (MBA) Quarterly Survey of Commercial/Multifamily Mortgage Bankers Originations. A decrease in originations for hotel, retail, office and healthcare properties led the overall decline in lending volumes when compared to the fourth quarter of 2019. There was a 79 percent year-over-year decrease in the dollar volume of loans for hotel properties, 72 percent dip for retail properties, 6 percent decline for office properties and a 12 percent decrease for healthcare properties. Industrial property loan originations increased 15 percent, while multifamily property lending rose 14 percent. Jamie Woodwell, MBA’s vice president of commercial research, says that unsurprisingly the data shows that the property types most affected by the pandemic struggled to transact. “Borrowing and lending remain weakest for the property types most impacted by the pandemic — particularly hotel and retail buildings,” says Woodwell. “Multifamily, led by government-backed financing from FHA, Freddie Mac and Fannie Mae, continued to see the strongest commercial mortgage activity.” Among investor types, the dollar volume of loans …

February 9, 2021

District of Columbia Market Reports Multifamily Southeast Southeast Market Reports

D.C.’s Multifamily Market is Poised for a Quicker Than Average Bounce Back in 2021

by John Nelson February 8, 2021

Like many other markets across the country, the Washington, D.C., multifamily market was hit hard by the COVID-19 pandemic. Vacancy is up and asking rents are down. However, Washington’s unique renter class, made up heavily of students and young professionals, and the region’s main economic drivers will fuel a quick post-COVID-19 recovery. As we close out 2020, multifamily investors have reason to remain confident in a quick bounceback in 2021. Once the virus hit, many offices switched to a remote work environment, and many of the local universities switched to remote learning. We know that this fueled an exodus of renters from the city to their parents’ basements, to greener pastures in the suburbs or to areas with a lower cost of living. At one of our market-rate listings in a core neighborhood of Northwest D.C., property managers reported an immediate 10-basis-point increase in vacancies the day that George Washington University closed its campus for the fall 2020 semester. Entering the fourth quarter, the Washington MSA recorded the highest vacancy rate on record, breaking 6 percent for the first time, according to research from CoStar Group. Average asking rents are down approximately 3 percent this year, and the pain is …

February 8, 2021

District of Columbia Southeast

US Economy Adds 49,000 Jobs in January, Unemployment Rate Drops to 6.3 Percent

by John Nelson February 5, 2021

WASHINGTON, D.C. — The U.S. economy added 49,000 jobs in January, the U.S. Bureau of Labor Statistics (BLS) reported Friday. Economists surveyed by Dow Jones had expected the report to show a gain of 50,000 jobs, which is a muted expectation compared to Citigroup’s forecast of 250,000 new jobs, according to CNBC. The unemployment rate fell by 40 basis points to 6.3 percent in January. There were notable job gains in professional and business services, as well as public and private education in January. However, these gains were offset by losses in leisure and hospitality, health care, transportation, warehousing and in retail trade. The leisure and hospitality sector took a big hit, losing 61,000 jobs this month, following 536,000 jobs in December. A majority of the losses came in amusements, gambling and recreation (negative 27,000). Employment in food services and drinking places continued to trend down by 19,000 jobs. Since February 2020, employment in leisure and hospitality is down by 3.9 million jobs, or 22.9 percent. Employment in local government education increased by 49,000, state government education increased by 36,000 and private education increased by 34,000 in January. According to the BLS, pandemic-related employment declines in 2020 in public and …

February 5, 2021

District of Columbia Southeast

Another 779,000 Americans File for First-Time Unemployment Assistance, Lowest Level Since November

by John Nelson February 4, 2021

WASHINGTON, D.C. — An additional 779,000 Americans have filed for first-time unemployment assistance for the week ending Jan. 30, the Labor Department reported Thursday. Economists surveyed by Dow Jones expected the number of claims for the week to total 830,000. The number of weekly claims is at its lowest level since late November 2020, according to CNBC. The most recent figure was a slight decrease from the previous week’s revised number of 812,000, but still remains significantly higher than pre-pandemic levels. The four-week moving average was revised down by 1,250 to 848,250. The continuing claims, data for which trails a week, totaled nearly 4.6 million claims for the week ending Jan. 23, a decrease of 193,000 from the previous week’s revised level.

February 4, 2021

Affordable Housing Development District of Columbia Loans Multifamily Southeast

DCHFA Finances 112-Unit Affordable Housing Development in D.C.

by John Nelson January 29, 2021

WASHINGTON, D.C. — The District of Columbia Housing Finance Agency (DCHFA) has financed a 112-unit affordable housing development in Washington, D.C.’s Anacostia neighborhood on the city’s southeast side. Mid-Atlantic Realty Partners and Taylor Adams Associates are the borrowers and co-developers of the $52.6 million development. DCHFA financed the project with a $27 million in tax-exempt bond financing and the underwriting of $20.6 million in 4 percent low income housing tax credits (LIHTC). Additionally, the DC Department of Housing and Community Development is providing a $16.5 million loan from its Housing Production Trust Fund for the property. The new community will be located at 2442 Martin Luther King Ave SE, just 500 feet from the Anacostia Metro Station. The apartments will be priced at 30 to 50 percent of area median income relative to Ward 8’s Anacostia neighborhood. The property will consist of 24 one-bedroom, 57 two-bedroom and 31 three-bedroom apartments. Six units will be designated Permanent Supportive Housing (PSH) units and will be supported by the Local Rent Supplement Program. Community Connections of DC will provide supportive services for the residents of the PSH units. The community’s planned amenities include a business center, community room and a parking garage with …

January 29, 2021

District of Columbia Southeast

Another 847,000 Americans File for Unemployment, GDP Grew 4 Percent in Fourth-Quarter 2020

by John Nelson January 28, 2021

WASHINGTON, D.C. — An additional 847,000 Americans have filed for first-time unemployment assistance for the week ending Jan. 23. Economists surveyed by Dow Jones expected the total number of claims to reach 875,000. The most recent figure was a slight decrease from the previous week’s revised number of 914,000, but still remains significantly higher than pre-pandemic levels. The four-week moving average was revised up by 16,250 to 868,000. The continuing claims, data for which trails a week, totaled 4.7 million claims for the week ending Jan. 16, a decrease of 203,000 from the previous week’s revised level. Separately, the Bureau of Economic Analysis reported the U.S. gross domestic product (GDP) grew at an annualized rate of 4 percent in the fourth quarter of 2020, which came 30 basis points below estimates from economists surveyed by Dow Jones. The GDP grew at an annualized rate of 33.4 percent in the third quarter of 2020. Overall in 2020, real GDP declined by 3.5 percent, compared with a 2.2 percent increase in 2019.

January 28, 2021

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