News
High DC Office Prices Scare Investors Away To The NoVa, MD Suburbs
April 11, 2016
Soaring prices in the DC office market have caused business to cool off significantly in Q1 2016, as the suburban market has absorbed much of its office sales.
The region brought in $2.1B of Q1 investment sales, contrasted to $5.2B during the same quarter in 2015, according to research by Delta Associates, reported by GlobeSt. In 2016, DC clocked 10 trades in Q1 at $571 per SF for $699M.
Maryland saw 12 deals at $597 per SF for $179M, and Northern Virginia rung up 25 agreements at $201 per SF for $1B. That doesn't count the two NoVa porftolio deals, including Finmarc's purchase of 26 buildings from First Potomac Realty Trust.
The current 12-month cap rate is 5.8% for DC versus 6.4% for the 'burbs. [GS]
