A recent CB Richard Ellis Group’s 2009 report on the office market in the Washington, DC area is off to a good start as the new year begins. According to the report, Washington area’s office market by the end of 2010 has attained the total net absorption, a record high 4.3 million square feet, but office vacancy rate has declined to 9.8% from 12.0% during the first quarter of 2010.
The figure for office vacancy rates represents the second-largest decline of any office market in the U.S behind Manhattan. The recent report by CB Richard Ellis show that office building sales in Washington’s office market soared considerably in 2010.
About 175 percent increase or about $4.8 billion in the overall transaction in the office market in terms of invest sales is recorded in 2010 from 2009, as prices for premium properties in the area exceeds $800 per square foot, while 55 percent of the total activity in the office market occurred in Washington’s business district.
The CB Richard Ellis report has particularly stressed out Washington DC as one of the most striking international real estate markets, while its would-be-supply will be constrained in 2012, 2013 and beyond, with investors competes for premium assets.
An Association of Foreign Investors in Real Estate member’s annual survey shows that Washington DC is rated no.2, behind New York City, as the best United States and global capital for foreign investor in 2011.
CBRE’s managing director for Washington office, Ernie Jarvis said, Washington DC ranks along with Tokyo and Japan for the overall real estate and office market’s activity and desirability