Q2 2012 District of Columbia, District of Columbia Apartment Submarket Trends

CRE Resources

View our District of Columbia, District of Columbia Submarket Map

Q2 2012 District of Columbia, District of Columbia Apartment Submarket Trends

The strongest residential submarkets in the District, those that remained prosperous even when the District as a whole was in decline, are located to the west and northwest of the Central Business District (CBD). With the District generally doing well however, much of the real estate action is picking up elsewhere as formerly depressed submarkets are revitalized or redeveloped with new uses.

Northwest D.C./Georgetown

  • The 10,058-unit Northwest D.C./Georgetown submarket has a second quarter 2012 vacancy rate of 4.1%, and an average asking rent of $1,762 per month, according to Reis.
  • The vacancy rate decreased 10 basis points during the quarter and is down 100 from a year earlier. The average asking rent increased 1.0% and the average effective rent rose 1.1% to $1,719 per month over the quarter. The year-over-year gains are 3.0% and 3.7%, respectively.
  • Marcus & Millichap reports a 3.9% vacancy rate, down 120 basis points year-over-year, and an effective rent of $1,649 per month, up 3.7%.

Woodley Park/Cleveland Circle/Van Ness

  • In the 10,162-unit Woodley Park/Cleveland Circle/Van Ness submarket, also in the Northwest, Reis reports the vacancy rate is 2.5%, unchanged from the prior quarter, and the average asking rent is $1,983 per month, the highest among nine submarkets.
  • The vacancy rate decreased 30 basis points from a year earlier. The average asking rent and the average effective rent increased 0.5% and 0.7% during the quarter, the latter $1,962 per month. Year-over-year gains were 3.9% and 5.0%.
  • Marcus & Millichap reports an effective rent of $1,889 per month up 5.3% year-over-year, for Woodley Park.

Foggy Bottom

  • For this 5,487-unit submarket, Reis reports a second quarter 2012 vacancy rate of 5.0% and an average asking rent of $1,876 per month, up 0.7% over the quarter. The asking rent is the second highest citywide.
  • The vacancy rate decreased 50 basis points from the previous quarter and is down 190 year-over-year. The average effective rent increased 0.9% in the second quarter to $1,870 per month. Asking and effective rents are up 0.6% and 1.1% from a year earlier.

Dupont Circle/Adams Morgan

  • The 11,716-unit Dupont Circle/Adams Morgan submarket has a vacancy rate of 1.7%, lowest among the nine submarkets, and an average asking rent of $1,654 per month.
  • The vacancy rate is down 20 basis points from the first quarter. The average asking rent rose 1.2%, and the average effective rent increased 1.5% to $1,653 per month. The asking and effective averages are up 3.4% and 4.3% from a year earlier.
  • Marcus & Millichap reports an effective rent of $1,580 per month, up 3.9% year-over year.
  • Another affluent submarket in the Northwest section of the city, this one known for the presence of embassies, this area has few, if any, development sites and no projects under construction.

Downtown/Logan Circle

  • In the 10,075-unit Downtown/Logan Circle submarket, the vacancy rate is 2.8% and the average asking rent is $1,780 per month.
  • The vacancy rate fell 20 basis points during the second quarter, and it is down 100 from a year earlier. The average asking rent and the average effective rent increased 1.7% and 2.0% during the quarter, the latter to $1,698 per month. The year-over-year gains are 4.5% and 5.4%.
  • Marcus & Millichap reports an average asking rent of $1,615 per month for Downtown/Logan Circle, up 4.5% year-over year.
  • The 390-unit Meridian at Mount Vernon Square is under construction for completion in August 2012. The 215-unit 360 Degrees is under construction for completion in January 2013, and the Sky House, at 266 units, is under construction as well.
  • Reis predicts 390 units will complete here in 2012, followed by more than 838 in 2013.

Howard University/Mt. Pleasant/Brightwood

  • Reis reports a vacancy rate of 4.7% for this 8,686-unit submarket, and an average asking rent of $1,317 per month.
  • The vacancy rate increased 10 basis points in the second quarter as the average asking rent increased 1.6% and the average effective rent increased 1.8% to $1,299 per month. The vacancy rate is down 90 basis points year-over-year, while rents are up 3.9% and 4.7%, asking and effective.
  • Reis reports three projects under construction with 2012 completion dates here. The Jefferson at 14W, with 212 market rate units, is under construction for completion in October 2012. The District, with 125 units, is set for completion in November 2012. The second Phase of Highland Park, at 144 units, is on tap to complete in December 2012.

Anacostia/Northeast D.C.

  • For the 20,218-unit Anacostia/Northeast D.C. submarket, Reis reports a vacancy rate of 6.0%, highest among the submarkets, and an average asking rent of $964 per month, the lowest in the District.
  • The vacancy rate fell 40 basis points in the second quarter, as the average asking rent and the average effective rent increased 0.5% and 0.7%, respectively, the latter to $936 per month. The year-over-year rent gains are 2.8% and 3.8%, respectively.
  • For Anacostia/Northeast D.C., Marcus & Millichap report vacancy at 6.1% and an average effective rent of $902 per month, up 4.2% year-over-year.
  • The Flats at Atlas, with 257 units, and Archstone NoMa, with 469 units are both due to complete construction in 2012.