WASHINGTON, DC - Cassidy Turley, a leading commercial real estate services provider in the U.S., announced today in its 2012 State of the Capital Markets Report that the Washington, DC metro area’s office sales volume totaled $7.2 billion in 2011 – an increase of 68 percent over 2010 and far exceeding the $5.4 billion historical average. The average price per square foot for office property in the region was $400 in 2011 – the second highest price per square foot on record. The region saw 73 transactions completed over the year and ranked second, behind Manhattan, in sales volume among all office markets for 2011. The average cap rate in the DC region was 6.8 percent, shrinking by 10 basis points from 6.9 percent in 2010. Cap rates in the District averaged 6 percent in 2011.
“Washington, DC continues to be a strong market for investors. Over the next 12 – 24 months, the bulk of the sales activity will stay in core to core plus properties,” commented Bill Collins, Executive Managing Director with Cassidy Turley. “But those investors willing to stray from the safest bets and assume future leasing exposure will be rewarded three years from now as the economy turns the corner and demand for space turns robust,” he continued.
“The debt market will be fundamental to the success of the real estate market, but it will be very much dependent on the return of a healthier CMBS market,” Mr. Collins added.
Cassidy Turley’s Capital Markets Group completed $4.5 billion in transaction volume in 2011. Click here to view the full 2012 State of the Capital Markets Report.
About Cassidy Turley
Cassidy Turley is a leading commercial real estate services provider with more than 3,400 professionals in more than 60 offices nationwide. The company represents a wide range of clients—from small businesses to Fortune 500 companies, from local non-profits to major institutions. The firm completed transactions valued at $18 billion in 2010, manages 455 million square feet on behalf of private, institutional and corporate clients and supports more than 25,000 domestic corporate services locations. Cassidy Turley serves owners, investors and occupiers with a full spectrum of integrated commercial real estate services—including capital markets, tenant representation, corporate services, project leasing, property management, project and development services, and research and consulting. In 2010, the firm enhanced its global service delivery outside of North America through its partnership with GVA. Please visit www.cassidyturley.com for more information about Cassidy Turley.