The rapid construction of DC apartment buildings will reach its peak this quarter, with a record number of units expected to deliver throughout the DC Metro area. This has created an extremely competitive environment among landlords, especially in the most supply-heavy submarkets like Capitol Riverfront.
The second quarter is projected to have 6,914 rental units deliver throughout the DC Metro area, according to Delta Associates’ Q1 report. Of those, 3,440 will deliver in the District, 1,995 in suburban Maryland and 1,519 in NoVa.
Within the District, the deliveries are heavily concentrated in the Capitol Hill/Capitol Riverfront/Southwest submarket, with six projects expected to deliver 1,560 units to the neighborhoods this quarter.
“I think you’ll see zero to negative rent growth in the Capitol Hill submarket for the foreseeable future,” Jones said. “I think definitely you’ll see greater concessions because there will be an extremely competitive landscape.” Developers acknowledge the heightened competition in the submarket and are stepping up their game to meet their absorption goals.
Click here to read the rest of the article written by Jon Banister over at Bisnow