On April 13th, a panel of local developers gave their insight
on the current and future state of the DC Real Estate Market.
Esteemed Panelists included Tim Helmig of Monday Properties, Toby
Bozzuto of Bozzuto Development, Rob Ward of Skanska and Michael
Darby of Monument Realty. Moderated by Sherry Cushman of CBRE,
the panel provided honest answers and opinions of speculative
development and the supply & demand that shapes the DC Market
unlike any other.
Sherry Cushman kicked off the panel discussion by asking the
panelists “If the DC market and all markets in general need
to be cautious?” All of the panelists concurred with Michael
Darby adding, “It feels like 2007 more and more everyday
with construction costs rising just like three years ago.”
Another question posed to the panel, “With 111 million square
feet occupied in Washington DC, do they see a potential shift
out of DC to places like Rosslyn? Silver Spring”? A resounding
yes echoed across the panel.
Sherry asked the panel one question that gave them all a chuckle,
“Do you think tenants in this market are spoiled?”
Renewal options, tenant improvements (TI’s) and concessions
– are a big reason tenants are spoiled. Michael Darby simply
asked “Why?” He believes his firm should just say
no to irresponsible tenant improvement options. “It’s
silly. It not money well spent and to be honest, the rent will
just be raised to cover the TI’s and concessions
”What are some dramatic changes to come?”
Toby Bozzuto said , “It’ll be one heck of a ride
in the next 24 months. And over the next 36 months a lot of inventory
will be delivered. And then in 2014 we will talk about the bust
all over again. We should be cautious.” Rob Ward chimed
in, “In 12-24 months, we will see a reduction in vacancy.
2014 and 2015 could be interesting. But, let’s be honest,
we are not good at moderation.”
Michael Darby asked a pointed question to Sherry Cushman: “How
has our industry evolved for women?” She replied, “It
has been a really rough road. The boys network is still going
strong. Less than 5% of the brokers nationwide are women. Good
women mentors are golden!”
The panel wrapped up the discussion with a couple of questions
from the audience.
Again, another insightful and though provoking panel discussion
for CREW DC.
Click here to view
attendees.
