Mid-Year Checkup: Vacancy Rates Tumbling, Prices Rising
Wooo numbers! Delta Associates is out with its mid-year reports, providing a pretty in-depth picture of the area office, condo, and apartment markets. Overall, things continue to steadily improve–unless you're looking to buy a home, of course. Here are some highlights:
- New unit sales were up 62 percent over the last year.
- Condo sales prices sank 6.0 percent over the whole metro area, but went up 1.3 percent in the District.
- 4,624 unsold units are actively being marketed in the metro area–the lowest level since 2003.
- The average purchase price per square foot in the District is $465–$550 in the Central area, $435 in Mideast, $595 in upper northwest, $385 in Capitol East (see map at right).
- The overall office vacancy rate is 12.8 percent, up from 12.1 percent a year ago, and projected to continue rising.
- There's 4.6 million square feet in the pipeline, compared to 10.5 million a year ago.
- The pre-lease rate for square footage in the pipeline is 51 percent, up from 32 percent last year.
- Rents were down 4.2 percent during 1st half of 2010.
- Housing prices were up 11.7 percent in the last year.
- The report projects "widespread shortages in late 2011 into early 2012."
- The vacancy rate for investment-grade apartments is 3.1 percent, down from 4.3 percent a year ago. The national rate at 8.2 percent, making D.C. the lowest in the country.
- Rents went up 3.6 percent over the last 12 months.
- The pipeline is 17,309, down from a high of 36,951 units in December 2007.
- Construction starts are still slow, at about 900 units breaking ground in each of the the first and second quarters, less than half the long-term average.