Marcus & Millichap

Washington DC Local Apartment Report

Second Quarter 2019

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Amazon HQ2 Boosts Rental Outlook in Arlington; Construction Continues to Transform Navy Yard

An expanding construction pipeline minimally impacts vacancy. A growing and diversifying workforce sustains apartment demand in Washington, D.C., which has kept the vacancy rate under 5 percent since 2014 despite ongoing construction. That trend will continue this year. After a brief slowdown in late 2018, annual openings will achieve their highest level in half a decade in 2019. Developers are most active in the Navy Yard/Capitol South submarket, where more than 3,000 units are expected to arrive by December, a 20-year record. The development pipeline is also accelerating in North Arlington with about 1,200 openings. Both areas began the year with below-market vacancy, limiting the construction’s effect on the metro’s overall availability.

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