Mid-Atlantic Real Estate Investment Market Report: November 2020
Can you guess the volume of construction waste generated annually by construction projects worldwide? What about the U.S. alone? According to a report from Construction and Demolition Recycling in 2018, the world’s yearly volume of solid waste will nearly double to 2.2 billion tons by the end of 2025. Construction waste makes up more than half of the overall waste generated annually. This includes materials such as wood, shingles, asphalt, concrete, and metal.
Keep readingMarket Activity
Richmond’s office vacancy rates stayed below 7.0 percent for the 15th consecutive quarter. Overall rent increased by 6.1 percent from the same time last year and by 1.2 percent from last quarter. The Central Business Districts’ office rental rates have jumped 6.6 percent, Class A rates increasing by 5.4 percent from last year.
Market Activity
After Philadelphia’s Central Business District saw positive rent growth and absorption for office space in the first quarter, it’s beginning to see activity slow. According to JLL, office vacancy has increased by 90 basis points since the start of 2020 due to roughly 300,000 square feet of negative absorption. The softening market is not only impacted by COVID-19 – some of the planned vacancies happened prior to the pandemic. One example is the Department of Labor’s move to 1835 Market Street.
Market Activity
More people working remotely helps multifamily properties but challenges some retailers. The ability to work from home for many professional and business service employees’ has ultimately helped support multifamily rental demand. However, the shift to working from home is having a profound impact on retail stores near office hubs where foot traffic has dropped significantly. Single-tenant and suburban retailers are faring better, but ongoing performance will vary depending on reopenings in the D.C. metro area.
