WASHINGTON, DC-While national average pricing for commercialreal estate properties has decreased 17.1%year-over-year, pricing in the Washington DC area has held steady,increasing 2.5% during the same period, accordingto Jones Lang LaSalle. In fact says JLL'sLucy Kitchin, "sales for federally-leased assetshave remained in a stable bandwidth over the past severalyears."
"Much of that has to do with the renewal rates for GSA leases,especially for first generation space, which is 95%," she tellsGlobeSt.com.
Despite the sequestration and recent clashes over the debtceiling, investors are still confident about government-leased realestate. It is not that investors have become inured to thetensions, Kitchin says, "but as of yet these political andfinancial issues haven't played out in the investment salesmarket."
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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.
