In the News
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Annual Real Estate Review Presents a Serious, Yet Hopeful, Outlook for Arlington
In the midst of one of the worst economies many have seen, over two hundred real estate professionals: developers, brokers and analysts, gathered on March 6th at the Kettler Capitals Iceplex for Arlington’s Annual Real Estate Review and Showcase. Presented by Arlington Economic Development and the Arlington Real Estate Group, AED Director, Terry Holzheimer reviewed Arlington’s current economic condition and its future outlook.
The good news: Arlington is likely to be “last in, first out” when it comes to the recession. Although prevailing wisdom indicates that those who are “first in” tend to be first for recovery, Arlington’s unique mix of proximity, business diversity, government contracting, transit-oriented development and a relatively strong housing market, coupled with a highly-educated, high-earning population will allow it to remain according to Business Week magazine, “one of the best places to weather the recession.”
Other findings presented include:
- Although Arlington has seen some limited employer downsizing, we will likely not witness the major losses of past years and certainly nothing like the dot.com bomb.
- Arlington’s office market looks better than expected, with 1.2 million square feet in new starts expected this year. Notable projects include Founders Square and 800/900 N. Glebe in Ballston.
- There has not been much degradation in the housing market. Some 1,500 new units are projected to start in 2009. Sales may be soft, but prices look to remain relatively stable.
- Retail sales will probably decline somewhat, however unemployment will still be modest at less than half the national level and incomes will remain high, keeping demand strong among the “Metro Renters” that populate the urban villages.
- Two hotels containing 318 rooms will deliver in 2009, with another 625 rooms under construction and scheduled for a 2010 opening. This is good news, yet the visitor industry may still have some stress ahead with pressures on both occupancy rates and prices. Government and business austerity measures are likely to remain in place for some time, restricting travel. Interest in the new Obama administration may drive more visitors to the region. Occupancy rates are relatively high and are likely to remain well above national levels.
The findings are clear – Arlington continues to be one of the best places to live, work and do business in the United States. Much of Arlington’s infrastructure: its development, transit, proximity and well-educated population which have been responsible for Arlington’s success, will continue to provide stability during down economic times, and will position it for future growth when recovery arrives.
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