CPN - February 2009 - (Page 11)

WASHINGTON, D.C., MARKET PROFILE MARKET INTELLIGENCE Washington’s New Times Obama Administration’s Arrival Raises Expectations for Government Growth By Suzann D. Silverman rdinarily, when a new presidential administration sweeps into town, it carries with it a phalanx of staff and others, adding residents and sometimes office demand to the Washington, D.C., market. In addition, a shift in political parties is generally considered to result in a transfer in strength between Maryland’s life sciences market and Northern Virginia’s defense sciences market.But with a new president’s initial measurement the first 100 days in office and fiscal budgets determined with an eye toward the future, rarely are the immediate changes to the local market significant. This time, though, things may be different, and it is not just because of President Barack Obama’s promises of change. The Base Realignment and Closure program is well under way, the United States is already decreasing its presence in O regional economy. Iraq and the GenerSofter Market Indeed, this combial Services Adminis(Washington, D.C., office-occupancy conditions) nation of activities has tration has been Rental Rate J Vacancy Rate resulted in a slew of intent on clear$70 14% government transacing up bottlenecks J J $60 12% tions, even while much caused by its extenJ J of the private sector sive holdover port$50 10% in Washington, D.C., folio. On top of all $40 J 8% J J as elsewhere, has rethat have been the J J J $30 6% leased space for submore urgent efforts $20 4% lease, held off on new to stem the bleedleases and hesitated to ing of the economy, $10 2% purchase properties. as the new admin$0 0% Among the biggest istration assumes 03 2004 2005 2006 2007 2008 2009 2010 2011 2012 20 leases last year, several direction of an Source: Cushman & Wakefield Inc. government deals vied already growing for top spots.The highTroubled Assets Relief Program. Speculation has it Richard Ellis Inc. senior vice presi- est-priced transaction was a lease that the program may take some dent William Prutting Jr., who noted that the GSA signed on behalf of the new directions, but market beliefs that a stimulus plan has never been in Department of Justice for 521,000 square feet at Two Constitution are that its local space needs will place and ready to be enacted when a president took office. He said that Square, which is under construcnonetheless continue to grow. tion at 145 N St., N.E., in the Capitol this will translate into new jobs that Already, the new administration’s approach seems to be more proac- will have a meaningful, near-term Hill/NoMa submarket. Developer StonebridgeCarras L.L.C. purportedimpact on net demand across the tive than previous ones,observed CB Rates per Square Foot Per Year THE ROCK OF GIBRALTAR HAS STOOD STRONG FOR MORE THAN 200 MILLION YEARS. DON’T YOU WISH YOUR LENDER HAD THAT KIND OF STRENGTH IN TODAY’S MARKET? There’s only one lender with the enduring strength of The Rock®. Prudential Mortgage Capital Company. For more than a century, The Rock has been the emblem of a company that stands strong, no matter what challenges or conditions we face. With seasoned veterans who have seen all kinds of markets, we have the experience you’re looking for today. Talk to us, and discover why now, more than ever, it ® makes sense to work with a lender that’s Rock Solid. PRUDENTIAL MORTGAGE CAPITAL COMPANY 1-888-263-6800 www.prumortgagecapital.com CAPITALIZE ON THE ROCK © 2008. Prudential Financial. www .cpnonline.com • Februar y 2009 • Commercial Property News 11 http://www.prumortgagecapital.com http://www.prumortgagecapital.com http://www.cpnonline.com

Table of Contents Feed for the Digital Edition of CPN - February 2009

CPN - February 2009 Contents Starting Line Buzzworthy Office Data/Analysis Washington, D.C., Market Profile Ranking: Mortgage Banks & Brokerage Firms Top Deals of 2008 Mortgage Banking Mexico Brokerage Sustainability CPN-Nielsen Claritas Special Report Resource Guide

CPN - February 2009

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