X

Thank you for sharing!

Your article was successfully shared with the contacts you provided.

WASHINGTON, DC-Both nationwide and locally, multifamily housing has been seen as a safe haven for real estate investing. And generally, real estate experts have said that the District’s real estate market remains healthy and protected from the fallout of the September 11 terrorist attacks. However, a recent report by Transwestern Commercial Services and its research subsidiary, Delta Associates of Alexandria VA, indicates the class B multifamily market in Washington may taper off slightly.

In a research report, Delta Associates said that before the terrorist attacks, class B apartment real estate was expected to maintain low vacancy rates and have rent increases at or near 5% each year for the next two years. However, the report notes that tenants in this submarket tend to be the very people that had jobs in tourism, hospitality and transportation that were affected or eliminated after the attacks. Thousands of people in the District have filed for unemployment from positions they formerly held at one of the more than 100 hotels in the city, or at Ronald Reagan National Airport just across the Potomac River in Alexandria. Since folks in these types of positions tend to occupy class B apartments, the firms said, they both expected a flattening of rents over the next six months. The report expected vacancy rates to inch up further.

Delta Associates said it surveyed 31 class B apartment submarkets in the Washington metropolitan area. The firm defines class B product as well maintained, older product, generally built in the 1960s or 1970s, does not offer a separate clubhouse nor decorated model unit nor two bedroom/two bathroom floor plans. The firm said class B communities typically offer limited project amenities, and the landlord tends to pay gas and or electric for common areas and individual units.

Want to continue reading?
Become a Free ALM Digital Reader.

Once you are an ALM digital member, you’ll receive:

  • Unlimited access to GlobeSt and other free ALM publications
  • Access to 15 years of GlobeSt archives
  • Your choice of GlobeSt digital newsletters and over 70 others from popular sister publications
  • 3 free articles* across the ALM subscription network every 30 days
  • Exclusive discounts on ALM events and publications

*May exclude premium content
Already have an account?

Dig Deeper

GlobeSt. Apartments 2020Event

Join 1000+ of the industry's top owners, investors, developers, brokers & financiers at THE MULTIFAMILY EVENT OF THE YEAR!

Get More Information
 

GlobeSt

Join GlobeSt

Don't miss crucial news and insights you need to make informed commercial real estate decisions. Join GlobeSt.com now!

  • Free unlimited access to GlobeSt.com's trusted and independent team of experts who provide commercial real estate owners, investors, developers, brokers and finance professionals with comprehensive coverage, analysis and best practices necessary to innovate and build business.
  • Exclusive discounts on ALM and GlobeSt events.
  • Access to other award-winning ALM websites including ThinkAdvisor.com and Law.com.

Already have an account? Sign In Now
Join GlobeSt

Copyright © 2020 ALM Media Properties, LLC. All Rights Reserved.