AOL is illustrative of a growing--and for the most part unusual trend--in the DC area: rising unemployment. Northern Virginia specifically has traditionally had one of the lowest unemployment rates in the country, but recent figures show that is changing.
The Virginia Employment Commission just reported that unemployment in Northern Virginia hit 3.4% in November, compared to 2.3% a year earlier. Statewide unemployment in Virginia rose to 4.6% in November, up from 3% a year earlier.
As these numbers rise, so will the inevitable office vacancies. Standard office space requirements are about 180 to 250 square feet per person.
Still, though, it is important to remember that Northern Virginia is still experiencing positive job growth, Spencer Stouffer, managing director at Cassidy & Pinkard Colliers, tells GlobeSt.com. "I haven't seen a direct affect in the commercial real estate market in Northern Virginia related to layoffs yet. There have been no meaningful bankruptcies or a lot of shadow supply coming to market." The market slowdown, rather, is more an issue of confidence. "There are still real [leasing] deals out there looking to be done."
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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.
