As a result no one is building on spec anymore, MacIntosh says."It is all build-to-suit or with significant preleases already inhand."
Washington, DC, though, bucks the national trend as usual, JohnKevill of Jones Lang LaSalle Washington Capital Market's team tellsGlobleSt.com. "We are seeing positive absorption across the board.Of course, there are some exceptions, probably for the same reasonsthat they are occurring on a national level: tenants move to newbuildings and it takes time to back fill old space."
According to Kevill, in the large DC submarkets vacancies areall dropping. In the CBD, rates have dropped from 8% a year ago toa little more than 5% currently, he says. In the East End, thosefigures are 8.5% and 7%, respectively.
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Erika Morphy
Erika Morphy has been writing about commercial real estate at GlobeSt.com for more than ten years, covering the capital markets, the Mid-Atlantic region and national topics. She's a nerd so favorite examples of the former include accounting standards, Basel III and what Congress is brewing.
