The Pandemic Hit Cities Hard And Then There's Washington, DC

[Anonymous]

Anonymous wrote:The data is coming in about downtown DC commercial real estate values.

https://www.bizjournals.com/washington/news/2021/10/07/office-value-drop-downtown-dc-bid.html

https://wtop.com/business-finance/2021/10/dc-office-vacancy-rate-hits-record-high-18-2/

https://wtop.com/business-finance/2021/10/dc-region-near-the-top-for-shedding-office-space/

Wow. The biggest concern for DC is in that it stands somewhat alone from other cities.

[Anonymous]

Anonymous wrote:

Anonymous wrote:The data is coming in about downtown DC commercial real estate values.

https://www.bizjournals.com/washington/news/2021/10/07/office-value-drop-downtown-dc-bid.html

https://wtop.com/business-finance/2021/10/dc-office-vacancy-rate-hits-record-high-18-2/

https://wtop.com/business-finance/2021/10/dc-region-near-the-top-for-shedding-office-space/

Wow. The biggest concern for DC is in that it stands somewhat alone from other cities.

Ouch. But DC is so cool and where all the smart educated people want to live.

“The great office give back is not universal. Among large cities, Austin, Salt Lake City, Miami and San Antonio have all seen a rise in office space being leased in the last year, and office rents are up on a year-over-year basis in 365 out of 380 metro areas tracked by CoStar, mostly secondary and tertiary markets.”

[Anonymous]

Anonymous wrote:

Anonymous wrote:

Anonymous wrote:The data is coming in about downtown DC commercial real estate values.

https://www.bizjournals.com/washington/news/2021/10/07/office-value-drop-downtown-dc-bid.html

https://wtop.com/business-finance/2021/10/dc-office-vacancy-rate-hits-record-high-18-2/

https://wtop.com/business-finance/2021/10/dc-region-near-the-top-for-shedding-office-space/

Wow. The biggest concern for DC is in that it stands somewhat alone from other cities.

Ouch. But DC is so cool and where all the smart educated people want to live.

“The great office give back is not universal. Among large cities, Austin, Salt Lake City, Miami and San Antonio have all seen a rise in office space being leased in the last year, and office rents are up on a year-over-year basis in 365 out of 380 metro areas tracked by CoStar, mostly secondary and tertiary markets.”

I was reading a different article a few days ago that went into market dynamics a little. The conclusion was that mid-block Class B office space in DC is screwed. Class A is doing fine. Corner buildings that are Class B are being upgraded to Class A. There are great deals to be had in Class A space and it has the amenities that people are now demanding, like advanced air filtration systems, outdoor space, etc.

So what is being left behind is a glut of mid-block Class B space that used to be important because it provided affordability. But organizations are now shrinking their office foot prints for hybrid and moving to Class A space so their costs stay the same.

Mid-block Class B offices are an even bigger problem because they are not practical to convert to residential due to a lack of windows (all residential spaces need to be within 30 ft of a window) and large floor plates. Even with the downturn, office rents are still higher than residential so the financial incentives are also not there.
But there is now a ton of Class

[Anonymous]

Anonymous wrote:

Anonymous wrote:

Anonymous wrote:

Anonymous wrote:The data is coming in about downtown DC commercial real estate values.

https://www.bizjournals.com/washington/news/2021/10/07/office-value-drop-downtown-dc-bid.html

https://wtop.com/business-finance/2021/10/dc-office-vacancy-rate-hits-record-high-18-2/

https://wtop.com/business-finance/2021/10/dc-region-near-the-top-for-shedding-office-space/

Wow. The biggest concern for DC is in that it stands somewhat alone from other cities.

Ouch. But DC is so cool and where all the smart educated people want to live.

“The great office give back is not universal. Among large cities, Austin, Salt Lake City, Miami and San Antonio have all seen a rise in office space being leased in the last year, and office rents are up on a year-over-year basis in 365 out of 380 metro areas tracked by CoStar, mostly secondary and tertiary markets.”

I was reading a different article a few days ago that went into market dynamics a little. The conclusion was that mid-block Class B office space in DC is screwed. Class A is doing fine. Corner buildings that are Class B are being upgraded to Class A. There are great deals to be had in Class A space and it has the amenities that people are now demanding, like advanced air filtration systems, outdoor space, etc.

So what is being left behind is a glut of mid-block Class B space that used to be important because it provided affordability. But organizations are now shrinking their office foot prints for hybrid and moving to Class A space so their costs stay the same.

Mid-block Class B offices are an even bigger problem because they are not practical to convert to residential due to a lack of windows (all residential spaces need to be within 30 ft of a window) and large floor plates. Even with the downturn, office rents are still higher than residential so the financial incentives are also not there.

Just to finish saying that the conclusion is that the only way out is that these real estate owners are going to need to accept significant losses and there will probably also need to be some public subsidies as well. We are a long way from there.

[Anonymous]

Anonymous wrote:

Anonymous wrote:

Anonymous wrote:I’m one who moved. Our very high income family was sick of being taxed like crazy, having no school, and (most of all) being surrounded by loons who think looting is a form of free speech and that encampments of human poo/drugs are appropriate near schools.

We are enjoying our lower tax rate, and REALLY enjoying living with people who have common sense!

Thanks for confirming that most of the posters on this thread get off on the city's problems.

Oh, and I'll bey your "very high income family" makes less than mine. Otherwise you would have gone private.

I definitely left because of people like PP. one of many reasons. DC doesnt even have that many wealthy residents. The wealthy residents are poor compared to the wealthy in LA, NY etc. I mean it’s one thing to be living in some fancy apartment in a world class city with kids in fancy prep schools. But someone from NW DC talking about their very high income? It’s laughable.

In contrast to NYC and LA, DC is not burdened with the mega rich. We have Ted Leonsis and Steve Case vs. uncountable hedge fund tycoons and fashion and entertainment celebrities. That is DC 's charm.

[Anonymous]

Anonymous wrote:

Anonymous wrote:

Anonymous wrote:

Anonymous wrote:I’m one who moved. Our very high income family was sick of being taxed like crazy, having no school, and (most of all) being surrounded by loons who think looting is a form of free speech and that encampments of human poo/drugs are appropriate near schools.

We are enjoying our lower tax rate, and REALLY enjoying living with people who have common sense!

Thanks for confirming that most of the posters on this thread get off on the city's problems.

Oh, and I'll bey your "very high income family" makes less than mine. Otherwise you would have gone private.

I definitely left because of people like PP. one of many reasons. DC doesnt even have that many wealthy residents. The wealthy residents are poor compared to the wealthy in LA, NY etc. I mean it’s one thing to be living in some fancy apartment in a world class city with kids in fancy prep schools. But someone from NW DC talking about their very high income? It’s laughable.

In contrast to NYC and LA, DC is not burdened with the mega rich. We have Ted Leonsis and Steve Case vs. uncountable hedge fund tycoons and fashion and entertainment celebrities. That is DC 's charm.

The real rich people in NYC and LA are foreign nationals. Russian oligarchs. Persian construction magnates. Turkish banking family. Chinese real estate owners.

[Anonymous]

I would think the reduction in travel such as tourism and business travel/conventions would be more of a hit than commuters buying Starbucks, happy hour and riding metro.

[Anonymous]

Anonymous wrote:I would think the reduction in travel such as tourism and business travel/conventions would be more of a hit than commuters buying Starbucks, happy hour and riding metro.

Why not both?

[Anonymous]

Anonymous wrote:

Anonymous wrote:

Anonymous wrote:The data is coming in about downtown DC commercial real estate values.

https://www.bizjournals.com/washington/news/2021/10/07/office-value-drop-downtown-dc-bid.html

https://wtop.com/business-finance/2021/10/dc-office-vacancy-rate-hits-record-high-18-2/

https://wtop.com/business-finance/2021/10/dc-region-near-the-top-for-shedding-office-space/

Wow. The biggest concern for DC is in that it stands somewhat alone from other cities.

Ouch. But DC is so cool and where all the smart educated people want to live.

“The great office give back is not universal. Among large cities, Austin, Salt Lake City, Miami and San Antonio have all seen a rise in office space being leased in the last year, and office rents are up on a year-over-year basis in 365 out of 380 metro areas tracked by CoStar, mostly secondary and tertiary markets.”

On the other hand, this is at least positive.

“The ‘flight from the city’ that occurred in the second half of 2020 (and was well-publicized) has been reversed in 2Q and 3Q 2021, as shown by the strong rent and low vacancy numbers,” the BID wrote.

[Anonymous]

Another one. https://www.washingtonpost.com/dc-md-va/2021/10/08/less-than-25-percent-office-workers-have-returned-downtown-dc-new-report-says/

At some point this will bleed into residential property values.

[Anonymous]

Anonymous wrote:Another one. https://www.washingtonpost.com/dc-md-va/2021/10/08/less-than-25-percent-office-workers-have-returned-downtown-dc-new-report-says/

At some point this will bleed into residential property values.

Always somebody out there rooting for DC to fail. The article says downtown residential rents are at an all-time high.

[Anonymous]

Anonymous wrote:

Anonymous wrote:Another one. https://www.washingtonpost.com/dc-md-va/2021/10/08/less-than-25-percent-office-workers-have-returned-downtown-dc-new-report-says/

At some point this will bleed into residential property values.

Always somebody out there rooting for DC to fail. The article says downtown residential rents are at an all-time high.

You think the Washington Post is rooting for DC to fail?

[Anonymous]

Anonymous wrote:

Anonymous wrote:Another one. https://www.washingtonpost.com/dc-md-va/2021/10/08/less-than-25-percent-office-workers-have-returned-downtown-dc-new-report-says/

At some point this will bleed into residential property values.

Always somebody out there rooting for DC to fail. The article says downtown residential rents are at an all-time high.

I posted that article and I am certainly not rooting for DC to fail.

[Anonymous]

Anonymous wrote:I remember this very well. https://twitter.com/TomLynch_/status/1267281828060282887

Soon after the "protestors" lit St. John's on fire too. The next day was when Trump forcibly moved the protestors and did that disgusting photo op in front of St. John's. And then only a few months later we had the Capitol Hill riot. Possibly the most shameful day for America I've witnessed in my life.

Different groups, obviously. But that makes it more dangerous, as now you have the real possibility of violent riots from several parts of the political spectrum. This could very well happen in DC again in 2024, if not sooner. The pandemic hit DC hard, but social unrest is a looming threat for DC too.

I think we're probably looking at President Nikki Haley in Jan. 2025. Not sure whether this will lead to protests on either side, or social unrest.

[Anonymous]

Anonymous wrote:

Anonymous wrote:I remember this very well. https://twitter.com/TomLynch_/status/1267281828060282887

Soon after the "protestors" lit St. John's on fire too. The next day was when Trump forcibly moved the protestors and did that disgusting photo op in front of St. John's. And then only a few months later we had the Capitol Hill riot. Possibly the most shameful day for America I've witnessed in my life.

Different groups, obviously. But that makes it more dangerous, as now you have the real possibility of violent riots from several parts of the political spectrum. This could very well happen in DC again in 2024, if not sooner. The pandemic hit DC hard, but social unrest is a looming threat for DC too.

I think we're probably looking at President Nikki Haley in Jan. 2025. Not sure whether this will lead to protests on either side, or social unrest.

No one is going to vote for a fake jat sikh.

Trumpets won’t vote for her and Punjabis won’t vote for her either.