[D.C.] Development Spreads To Outlying City Districts

[seicer]

Development Spreads To Outlying City Districts

Notes --

1. Employers traditionally looked for structures and developments as close to Capitol Hill as possible. The land in the city's core, however, has become scarce, so office developments are springing up in less-desirable regions.

2. The region's strong economy has driven the development of urban submarkets -- throughout the city and in Virginia and Maryland suburbs. Last year alone, the Washington metro area added 10 million sq. ft. of office space in a region home to 5.3 million people -- the highest volume of the 54 major markets in the United States.

2a. This growth is expected to slow, but Washington's office market remains quite robust. The metro are had a 12 million sq. ft. net demand for office space -- the highest of the nation's metro areas.

3. Half of the new construction is in Washington D.C. Speculative construction in the suburbs is still going forward.

4. Last year, Washington developer Akridge purchased the air rights for 15 acres next to Union Station for $10 million. He is planning on a $1 billion mixed-use development project above the train tracks that would include three million sq. ft. of space that includes office, residential and retail -- called Burnham Place at Union Station. Projects on this scale, as noted by the developer, only occur when there is little space left to build.

5. Other developments have been infesting outward into previously industrial or blighted areas. One example was the development spurred by the construction of the $611 million Washington Nationals baseball stadium.

5a. As a result, a "surge of development" is occurring near the stadium.

6. Other tenants are considering the Southeast because office rents are much cheaper than the central business district.

7. Although rents overall are rising, the construction of new offices has pushed up the vacancies in some of the city's submarkets. A slowdown in the residential market has been forecasted to put a downer on retail sales -- and could push retail vacancies higher.

Article information: "Development Spreads To Outlying City Districts, By MAURA WEBBER SADOVI, May 9, 2007; Page B4, Wall-Street Journal"

[krazeeboi]

As a submarket, I read somewhere that NOVA is beginning to rival the District itself. I can believe it.

I think this is a positive benefit of the height restrictions in the District--it allows more of the surrounding areas to see some development they otherwise wouldn't have seen.

[Lowerdeck]

While DC itself may have the name recognition for all the government doings and power, NoVa is doing very well for itself in the business aspect. I was down in DC a few months ago, the area around Pentagon City Mall along with Rosslyn is a serious rival to DC itself. Combine that with Alexandria and Tysons and other major areas, it's a force.

[krazeeboi]

^Now if we could only get those areas to have just a fraction of DC's urbanity, they would REALLY be rolling!

[skylinefan]

^Now if we could only get those areas to have just a fraction of DC's urbanity, they would REALLY be rolling!

[rogue monchichi]

and as we become more a nodal city - a nodal form of transit system becomes that much more important.

that's right. i'm going to say it:

purple line.

but you people have a whole other convo about that up here somewhere. just thought i'd throw in the reminder.

[tombarnes]

and as we become more a nodal city - a nodal form of transit system becomes that much more important.

that's right. i'm going to say it:

purple line.

but you people have a whole other convo about that up here somewhere. just thought i'd throw in the reminder.

[krazeeboi]

Alot of those areas are developing thriving urban cores. Reston, Arlington (Ballston-Rosslyn Corridor), Shirlington etc.