Elizabeth Leigh
A Jones Lang LaSalle report has found stable leasing activity in Washington“™s commercial real estate market for the second quarter.
A total of $1.9 billion in investments came from abroad from January to June, an 84 percent increase from the same period last year, the report said.
“The second quarter was statistically one of the flattest ever for the office leasing market, but it“™s encouraging to see stability in the market given the ongoing challenges that remain within the federal government,“ said Scott Homa, vice president for research at Jones Lang LaSalle, referring to the effects of mandated budget cuts and rightsizing.
The report went on to forecast a steady market for the central business district and East End submarket in the near term, citing continued tenant interest on key assets.
“An approaching surge in lease expirations and concurrent slowdown in speculative construction will ensure balanced market conditions in 2014,“ Homa added.
Growth has been more modest for regional office buildings, with buyers shying away despite renovations and incentive packages, the report found..
