Joe Friedman of Edge Capital Markets Group predicts record-setting activity in greater Washington, D.C. region with focus on industrial, flex and neighborhood services retail
Favorable economic, financial and job-creation conditions makes the current environment ideal for both buyers and sellers of commercial real estate, especially in the industrial, flex office and neighborhood services retail categories in 2020, explains Joe Friedman, Partner and head of the Edge Capital Markets Group based in Washington, D.C. Interest rates hovering below the 4% range for ten-year fixed money, combined with the availability of ready capital, both equity and debt,continues to motivate sellers and buyers to transact and make deals that result in above-average pricing and favorable returns for equity investors.
“These positive fundamentals have fueled an extremely brisk capital markets environment over the past six months, and with discussions about a national recession now abated, we fully expect strong activity particularly in the Northern Virginia where job growth continues to lead the region,” explained Joe Friedman of Edge. “There continues to be strong pressure among both private and institutional investors to invest in real estate across all product classes. Interest in the industrial/warehouse sector is the most prolific, as well as ‘covered land-play’ opportunities in well-located sections of the city and county. Suburban office remains a case-by-case and market-by-market situation, with investors able to acquire product at a significant discount to replacement cost. At these pricing levels, investors are able to justify investing capital to repurpose and re-invent of the modern day suburban office product. We expect a record-setting year in 2020.”
Friedman adds that neighborhood services retail with emphasis on conveniently-located food service, fitness, medical care, and self-care businesses remains a highly attractive investment category. Population growth, discretionary consumer spending, and the trend towards health and wellness will continue to drive leasing demand at these properties that are strategically positioned close to neighborhoods, either within walking distance or a short drive.
Edge Commercial is a commercial real estate firm providing a full complement of advisory, leasing, investment sales, management, construction, property management and engineering services to clients throughout the Washington, D.C., Maryland, Northern Virginia, and Pennsylvania marketplaces. Founded in 2007, the company currently leases and manages more than 8.5 million square feet of commercial office, flex/office, industrial/warehouse, retail and mixed-use space. Visit www.edgecre.com