In the past, there have been all kinds of truisms about real estate, and one by one they’ve been blown out of the water. “Buy real estate, cause god’s not making any more of it.”
Ha! Turned out that god wasn’t, but man was making it in spades, building homes in areas where nobody had thought to live before.
But another line of thinking was that DC real estate was particularly safe, because expansion of the Federal Government was a slam dunk. Well, not so much.
WaPo: The office vacancy rates in the District, Northern Virginia and suburban Maryland rose substantially in the second quarter, forcing building owners to push down rents to fill empty space, according to an analysis released yesterday.
The result is that the vacancy rate rose to 10.2 per cent in the second quarter from 8.5 per cent in the first quarter in the District, to 13.9 per cent from 12.9 per cent in Northern Virginia; and to 13.9 per cent from 13.1 per cent in suburban Maryland.
So once again, the truism was only half right. Yes, the government has grown like crazy, but it doesn’t mean that supply can’t grow even faster, or that businesses can flood into a market, but then not be able to take advantage of all these government dollars.
The good news is that this is probably the last myth to die.
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