Press Releases

Research Presented for 23rd Annual Delta Associates Multifamily Market Overview

October 29, 2019


Washington – Washington, D.C., continues to be the market leader in Class A apartment absorption and oncoming supply. In the 12-month period ending September 2019, 9,714 Class A apartment units were absorbed in the Washington metro area, and 35% of these units were in the District, according to research presented by Delta Associates at the 23rd Annual Delta Associates Washington/Baltimore Multifamily Market Overview and Awards for Excellence.

The event also included awards for apartment and condominium communities throughout Washington, D.C., suburban Maryland, Northern Virginia and Baltimore for factors such as lease-up, sales pace, design and innovation. The market overview report and list of apartment and condominium award winners are available for download at www.multifamilydc.com

“In the Washington metro, there are over 90 Census tracts designated as Opportunity Zones and apartment development is starting to ramp up in these areas,” said William Rich, President of Delta Associates. “As of September, more than 5,600 market-rate units under construction or in lease-up in the area are in Opportunity Zones, concentrated in the District, Prince George’s County, Montgomery County and Prince William County.”

The Washington condominium market remains supply-constrained, although there has been an upswing in new product coming online. Despite the lack of supply, price growth is expected to remain in the low-single digits in the short term.

In the Baltimore metro, absorption of Class A apartments has averaged about 2,100 units per year over the past 10 years. In the 12-month period ending September 2019, absorption reached nearly 2,400 units. Of that total, half of the absorption was in Baltimore City.

While wage growth has strengthened and major stock market indices are up significantly over the year, the national economy is showing some signs of softening after almost a decade of expansion.

“However, on the local front, Arlington won out over the other finalist cities for Amazon HQ2 in November 2018. Since then, Amazon has slowly started hiring and plans are advancing for their headquarters campus,” said Rich. “Amazon’s impact on National Landing and the region will be long-lasting, helping to diversify the job base, generate demand for commercial real estate and housing and additional spin-off benefits will result in more companies choosing to locate in Washington.”

ABOUT TRANSWESTERN

Transwestern is a privately held real estate firm of collaborative entrepreneurs who deliver a higher level of personalized service – the Transwestern Experience. Specializing in Agency Leasing, Asset Services, Occupier Solutions, Capital Markets and Research, our fully integrated global enterprise adds value for investors, owners and occupiers of all commercial property types. We leverage market insights and operational expertise from members of the Transwestern family of companies specializing in development, real estate investment management and research. Transwestern has 35 U.S. offices and assists clients from more than 221 offices in 37 countries through strategic alliances with France-based BNP Paribas Real Estate and Canada-based Devencore. Experience Extraordinary at transwestern.com and @Transwestern.

ABOUT delta associates

Delta Associates, the consulting affiliate of Transwestern, is a firm of experienced professionals providing services to the commercial real estate industry since 1980. Delta’s main practice areas are (1) consulting, research and advisory services for all property types through the United States, including market feasibility, highest and best use, market entry strategies, asset performance enhancement, market due diligence, white papers on special topics, valuation analysis, and litigation support; and (2) subscription publications for selected metro areas in the Mid-Atlantic for the apartment, condominium, office, retail, and housing markets. For more information, or to sign up for complimentary market information, visit www.deltaassociates.com or follow @DeltaAssociates.

Media Contact:

Hannah Krobock

301.896.9135

hannah.krobock@transwestern.com

twmediarelations@transwestern.com

William Rich

President Delta Associates - LL

Washington, District of Columbia

(202) 778-3121