District of Columbia

U.S. Economy Loses 701,000 Jobs in March Due to Efforts to Contain Spread of Coronavirus

by Alex Tostado April 3, 2020

WASHINGTON, D.C. — The U.S. economy lost 701,000 jobs in March due to the effects of the novel coronavirus and the efforts nationwide to slow the coronavirus pandemic. Additionally, the unemployment rate rose 90 basis points to 4.4 percent, the Bureau of Labor Statistics (BLS) reported. Employment in leisure and hospitality fell by 459,000, mainly in food services and drinking places (-417,000). The hospitality sector was hit hardest due to many states issuing stay-at-home orders, airlines canceling flights and conferences nationwide being canceled or postponed indefinitely. Notable declines also occurred in healthcare (-43,000), social assistance (-19,000), professional and business services (-52,000), retail trade (-46,000), and construction (-29,000). Employment in the federal government rose by 18,000 in March, including 17,000 temporary workers for the 2020 United States Census. The change in total nonfarm payroll employment for January was revised down by 59,000 from 273,000 to 214,000. The change for February was revised up by 2,000 from 273,000 to 275,000. As of this writing, Johns Hopkins University (JHU) reports there are 245,601 confirmed cases of COVID-19 in the U.S. and 6,058 deaths. The number of confirmed cases is up 30.5 percent from 188,200 as of Monday, March 30. The latest job figures …

April 3, 2020

First Step to Restoring Economy is Stopping Pandemic, Says NRF Chief Economist

by Alex Tostado April 2, 2020

WASHINGTON, D.C. — In the April issue of the National Retail Federation’s (NRF) Monthly Economic Review, NRF chief economist Jack Kleinhenz says in order to see the economy bounce back from the coronavirus pandemic, the country must first “get the virus under control.” The Associated Press reported Thursday morning that U.S. unemployment claims hit 6.6 million for the week ending March 28, doubling that of the 3.3 million claims filed in the week ending March 21. “How quickly the country gets a handle on containing the virus will determine the degree of the impact on the economy and how soon businesses can reopen,” Kleinhenz wrote in the report. The NRF report highlighted that leaving 2019, the gross domestic product (GDP) was growing at 2.1 percent clip year over year and that the U.S. economy benefits from sound fundamentals, unlike during the Great Recession. “Once the pandemic is over, we hope we will find that there is nothing structurally wrong with the economy and that any deficiencies were solved by monetary and fiscal policies,” Kleinhenz said. Washington, D.C.-based NRF has advocated for retailers and policies for more than 100 years.

April 2, 2020

Company News District of Columbia Hospitality Southeast

AHLA Launches ‘Hotels for Hope’ to Assist First Responders During COVID-19 Outbreak

by Alex Tostado March 26, 2020

WASHINGTON, D.C. — The American Hotel and Lodging Association (AHLA) has launched “Hotels for Hope,” a new initiative that aims to connect participating hotels with the health community struggling to find housing and support as the COVID-19 public health crisis grows. Washington, D.C.-based AHLA has identified more than 6,500 properties nationwide that are can work with the U.S. Department of Health, Human Services (HHS) and the U.S. Army CORPS of Engineers to provide access to hotel properties to support the health community and our nation’s first responders and local emergency management and public health agencies. Due to the COVID-19 outbreak, the hotel industry is seeing vacancy rates soar across the United States, with some markets, including Boston, Seattle and Austin, reporting more than 80 percent vacancy. Markets including Chicago are reporting single-digit occupancy rates. More than 4 million hotel jobs could be lost in the coming weeks, according to AHLA. In mid-March, the U.S. Travel Association and AHLA requested $150 billion from the federal government for economic relief as the travel sector is especially affected by the coronavirus. AHLA is working to establish a national database with the HHS so that local, state and federal officials will be able to …

March 26, 2020

Company News District of Columbia Loans Multifamily Seniors Housing Southeast Student Housing Top Stories

Freddie Mac, Fannie Mae Enact 90-Day Financial Relief Plan for Multifamily Borrowers, Tenants

by John Nelson March 24, 2020

WASHINGTON, D.C. — Freddie Mac and Fannie Mae have separately announced nationwide initiatives to provide financial relief for their multifamily borrowers and tenants affected by the outbreak of coronavirus disease of 2019 (COVID-19). The two government-sponsored enterprises are enacting programs that allow their borrowers to defer monthly payments for up to 90 days by showing hardship as a consequence of COVID-19 and by gaining lender approval. Additionally, participants in the program must agree to not evict their renters who are facing financial hardship due to the current health crisis. The agencies anticipate the initiatives could impact more than 54,000 apartment communities across the country. “This program is historic in its size, and it has the potential to provide relief to millions of families in multifamily rental homes financed through a Freddie Mac loan,” says Debby Jenkins, executive vice president and head of Freddie Mac Multifamily, which implemented a similar forbearance plan in 2017 following Hurricane Harvey in Houston. “Countless Americans are facing unimaginable hardships, and Freddie Mac is doing what we can to provide relief as our nation addresses this global pandemic,” says Jenkins. The outbreak of COVID-19 is likely to push the United States into a recession as the …

March 24, 2020

Company News District of Columbia Southeast

SIOR Launches Nationwide Outreach Program to Aid Nonprofits Impacted by Coronavirus

by Alex Tostado March 20, 2020

WASHINGTON, D.C. — The Society of Industrial and Office Realtors (SIOR) has launched a nationwide program to help nonprofit organizations remain open and operating in the midst of the worldwide COVID-19 outbreak. The Community Assistance and Relief in Emergencies (CARE) program will help get charities and nonprofits in touch with local SIOR members to share the organization’s contact information, circumstances and needs. The SIOR member can then provide real estate advice, contacts and, if applicable, direct the organization to a property owner(s) that can help accommodate the group’s needs. Through this initiative, SIOR hopes that organizations searching for a commercial real estate space can quickly get up and running. “Our organization was founded during World War II with the goal of assisting the United States government in fulfilling critical space needs,” says Mark Duclos, SIOR global president. “Today, we are in a new global crisis, one that calls upon all of us to do our part. There has never been a more important time to use our knowledge, resources and network to help our nation get through this together.” Organizations interested in getting in contact with CARE can do so at www.sior.com/care.

March 20, 2020

Development District of Columbia Office Southeast

Novel Coworking Opens 190,385 SF Office Building in D.C.’s Dupont Circle District

by Alex Tostado March 12, 2020

WASHINGTON, D.C. — Novel Coworking has opened Novel Coworking Dupont Circle, a 12-story, 190,385-square-foot office building in northwest Washington, D.C. The company acquired the building, situated at 1201 Connecticut Ave. NW, in July 2019. The space can accommodate one- to 200-person teams. Situated two blocks from Dupont Circle, the building was originally developed in 1940. Memberships start at $199 per month, private offices start at $575 per month and office suites start at $399 per employee a month. Chicago-based Novel Coworking operates 37 locations nationwide.

March 12, 2020

Acquisitions District of Columbia Office Southeast Top Stories

Paramount Group to Sell Pennsylvania Avenue Office Building for $115M

by Taylor Williams March 9, 2020

WASHINGTON, D.C. — Paramount Group Inc. has agreed to sell 1899 Pennsylvania Ave., a 191,000-square-foot office building in Washington, D.C., for $115 million. Originally built in 1915 and most recently renovated in 2002, the 11-story building is located just three blocks from The White House in the city’s central business district. The property features 18,200-square-foot floor plates and floor-to-ceiling glass façades, as well as amenities such as a fitness center, rooftop terrace and 64 covered parking spaces. In addition, four Metrorail lines serve the building. “With the sale of 1899 Pennsylvania Ave., we have now strategically sold all five of our wholly owned assets in Washington, D.C.,” says Albert Behler, chairman, CEO and president of Paramount Group. “This transaction demonstrates our determination to sell stabilized or non-core assets and redeploy that capital into higher-growth opportunities.” The transaction is expected to close during the fourth quarter. The buyer was not disclosed. The Washington Business Journal reported in 2010 that Paramount Group had acquired the asset for $149 million. Paramount Group is a New York City-based investment and management firm that specializes in owning and operating Class A office properties in the core markets of New York City, San Francisco and Washington, D.C. …

March 9, 2020

District of Columbia Southeast

U.S. Economy Adds 273,000 Jobs in February, Surging Past Economists’ Expectations

by Alex Tostado March 6, 2020

WASHINGTON, D.C. — The U.S. economy added 273,000 nonfarm payroll jobs in February, the Bureau of Labor Statistics (BLS) reported Friday. Economists surveyed by The Wall Street Journal had forecast an increase of 175,000 jobs. The unemployment rate remained unchanged from January at 3.5 percent. The BLS revised both January and December 2019 job totals up by a combined 85,000 jobs. The BLS now reports December added 37,000 jobs for a total of 184,000. January’s total stood at 273,000 jobs, up 48,000 from the original report. After revisions, job gains have averaged 243,000 per month over the past three months. Food services and drinking places added 53,000 jobs in February. Employment in the industry has increased by 252,000 over the past seven months, following a lull in job growth in the sector in the first half of 2019. The leisure and hospitality sector added 51,000 jobs, though it is worth noting that the BLS expects disruptions caused by the coronavirus to be reflected in the March jobs report. The healthcare sector added 32,000 jobs in February. Retail trade lost 7,000 jobs. Transportation and warehousing lost 4,000 for a net loss of 16,000 jobs in the early part of 2020. In February, average …

March 6, 2020

Washington and North Virginia Rent Occupancy Graph

Content Partner District of Columbia Features Lument Market Reports Multifamily RED Capital Group Southeast Southeast Market Reports Virginia

Washington’s Tech Boom Changes the Multifamily Investment Calculus

by Sarah Daniels March 3, 2020

Washington and Northern Virginia are among the nation’s most expensive places to rent an apartment, which in part explains the billions of dollars being spent on apartment construction there. But Capital Area asset returns in the post-recession era haven’t clearly supported these decisions. From 2013 to 2018, rents in Washington and NoVA increased at respective compound annual rates of 3.2 percent and 2.6 percent, tabulating Reis data, materially slower than the 4.7 percent average growth recorded by the 50 largest U.S. apartment markets. Likewise, occupancy trends were no better than average, muted by heavy supply, suggesting that Washington NOI growth in most cases was measurably slower than in alternative markets. But everything changed last year. Although Washington has been a technology player for decades, the region’s strengths fell primarily in telecom and defense, markets in which proximity to government was a competitive advantage. But the region’s growing prowess in private applications of digital technology reached critical mass in 2019 with Amazon’s decision to site its East Coast headquarters in Northern Virginia, specifically with a view toward tapping its deep reservoir of high-tech talent. The impact on economic growth in the capital is only beginning and seems likely to fundamentally alter …

March 3, 2020

Acquisitions Development District of Columbia Multifamily Office Southeast

Joint Venture Acquires Office Building in D.C. for $34.7M, Plans to Reposition as Apartments

by Alex Tostado February 24, 2020

WASHINGTON, D.C. — A joint venture between Lincoln Property Co. and Cadillac Fairview has acquired 1313 L Street, an 84,040-square-foot office building in downtown Washington, D.C., for $34.7 million. The property is situated less than a mile from The White House. The building was formerly the headquarters of the seller, the National Association for the Education of Young Children (NAEYC). The asset was originally built in 1984 and has served at NAEYC’s headquarters since 2006. Dek Potts, Susan Carras, Walter Coker and Brian Crivella of JLL represented the seller in the transaction. West, Lane & Schlager (WLS) is advising NAEYC on its relocation to a new headquarters. The buyers plan to redevelop the building into apartments, but provided few details.

February 24, 2020

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