Suburban markets have been more responsive to the falloff in tenant demand than the District, the report also finds. Over three quarters of all remaining development is concentrated Downtown, while Northern Virginia and Suburban Maryland are wrapping up their speculative construction cycle. The exception will be federal government requirements in suburban Maryland and Arlington County, VA, which are expected to generate a few groundbreakings in the near term.
Still, though, a handful of projects have done well by inking pre-leases. These include 2200 Pennsylvania Ave., NW; 1000 Connecticut Ave., NW; 800 17th St., NW; and 1275 1st St., NE. For the most part, Homa concludes, the new construction's primary impact is going to be on second-generation buildings as tenants trade up for more efficient space.
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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.
