Connect with us

Washington, D.C

DC Office Landlords Want Help For Distressed Office Market

Published

on

DC Office Landlords Want Help For Distressed Office Market


A few of Washington, D.C.’s most notable workplace landlords have reached out to metropolis officers requesting intervention within the District’s distressed workplace market, given the dangers it may pose to its fiscal well being. 

In a letter despatched by the Federal Metropolis Council to Glen Lee, D.C.’s new chief monetary officer, the financial growth group requested that Lee’s workplace higher clarify how it’s accounting for the extent of misery going through town’s workplace market, significantly because the newest D.C. finances included elevated tax charges for business properties.

Firms that signed the letter embrace Hines, Boston Properties, Brookfield, Trammell Crow, JBG Smith, Carr Properties, PRP, Akridge and Hoffman & Associates.

Particularly, the letter asks for extra readability on how the District determines key variables like cap charges for workplace buildings, and the way it takes under consideration gross sales of distressed properties.

Advertisement

Whereas the letter doesn’t criticize District officers, it does unequivocally present the businesses concerned fear that D.C. policymakers don’t totally perceive how distressed the workplace market actually is, and it urges officers to satisfy with them to handle the approaching finances hole. 

The letter states that the workplace market in downtown D.C. is experiencing vital setbacks ensuing from the dramatic and chronic decline in commuter exercise mixed with the uptick in distant work. 

“To be clear, the years main as much as the pandemic noticed deteriorating situations within the D.C. workplace market,” the letter states. “The pandemic and do business from home have additional eroded fundamentals, and all indicators of the well being of the District’s workplace market level to elevated systemic threat and misery.”

Citing emptiness charges, the letter factors out that, of the 733 massive workplace buildings within the District with a heavy workplace presence, 137 are actually greater than 25 p.c vacant. General, the workplace emptiness fee within the Central Enterprise District is at 20.3 p.c, a rise from 10.6 p.c within the final quarter of 2019. Sinking workplace demand is one thing being skilled throughout the nation. 

The letter additionally factors to lackluster leasing exercise, noting non-public firms and the federal authorities have each pulled again not too long ago. The year-to-date internet absorption within the CBD and East Finish submarkets was -174,763 and -391,485, respectively.

Advertisement

Moreover, there have been only a few gross sales in 2022, which the letter notes is a “troubling signal,” and it’s anticipated that there can be extra frequent distressed gross sales. And whereas some gross sales contain office-to-residential conversions, which is nice information for Downtown, it’s unhealthy information for workplace market valuations, the letter reads.

“D.C. is doing many promising issues to convey vitality and vitality again Downtown, like pursuing office-to-residential conversions and redoubling its tourism promotion efforts,” Kevin Clinton, chief program officer for the Federal Metropolis Council, informed Business Observer. “In the end, we expect that the way forward for downtown goes to have a higher mixture of makes use of, and workplace, residential, arts, leisure and parks will all be a part of the answer.” 

So, at the same time as many firms pursue telework extra, there’s a must deal with company attraction for these firms that do need to be in dynamic locations, to switch some companies who downsize or vacate their house. 

“Our curiosity on this matter isn’t about being overtaxed,” the letter states. “We’re primarily involved in regards to the future fiscal well being of town. For each decline of $100 million in business property tax assessments, annual property tax income falls by $2 million. It’s vitally essential for metropolis officers to completely comprehend the tough setting business workplace buildings are working underneath and the dangers to the longer term tax income.”

Paul C. Dougherty, president of PRP, informed CO it’s essential to take a look at how the D.C. market has arrived at its present state of affairs. A part of it has been by means of tenants resizing over the past cycle mixed with an increase in these working from house, he mentioned.

Advertisement

“A whole lot of this began earlier than the COVID interval — most likely 5 to 10 years in the past — however on the similar time, we have been introducing new markets into D.C., such because the ballpark, waterfront and Mount Vernon Sq.,” Dougherty mentioned. “Folks have been flocking to newer product, and people markets stuffed with older product — just like the CBD and the East Finish — have suffered.”

However past that, town has had a tough time attracting new firms and has misplaced quite a lot of firms, he added, and the pandemic simply added to those issues. 

“What we mentioned to Glen Lee is we would like you to do very nicely, however this finances is proposing quite a lot of blue skies and excellent news revenues that we don’t assume are going to be there,” Dougherty mentioned. “The letter was written to say, ‘Look, it’s essential to step again and take a look at what’s occurring, and it’s essential to present for what we expect goes to be an prolonged down interval in downtown workplace. You must be conservative in the way you take a look at issues.’”

Keith Loria will be reached at Kloria@commercialobserver.com.

Advertisement



Source link

Continue Reading
Advertisement
Click to comment

Leave a Reply

Your email address will not be published. Required fields are marked *

This site uses Akismet to reduce spam. Learn how your comment data is processed.

Washington, D.C

No charges in case of man who died after fight outside DC restaurant

Published

on

No charges in case of man who died after fight outside DC restaurant


D.C.’s top prosecutor has declined to press charges in a death investigation involving two men who got into a fight outside of a restaurant.

Advertisement

They say the evidence wasn’t there but the family of the man who died disagrees and is continuing their search for justice.

It was 2 a.m. on Feb. 2 when a fight broke out between a man and 41-year-old Virginia Tech Executive Vivek Taneja. It was all caught on camera,

Prosecutors say it’s unclear whether it was a punch or him falling to the ground but Taneja would later die from his injuries.

Advertisement

FOX 5 obtained video of the fight through the U.S. Attorney’s Office. In it, Tanaja is seen sitting in a courtyard with two women.

Then, a man in gray, who the Washington Post is reporting was a former Arlington police officer, is walking and then stops and starts talking to the three of them.

Advertisement

It appears a verbal altercation begins, with the two women trying to separate the men. Then, punches are thrown. Taneja winds up unconscious on the ground, unconscious.

PREVIOUS COVERAGE: Victim dies after assault in Northwest, death ruled as a homicide: police

In a letter announcing that they’re declining to press charges, the U.S. Attorney’s Office, who called this death tragic, indicated they believe it was Taneja who threw the first punch in the scuffle and didn’t think charges applied, adding that they’d have to prove beyond a reasonable doubt that the other man was not acting in self-defense.

Advertisement

While the U.S. Attorney says they investigated this thoroughly, family, and attorneys representing Vivek Taneja have requested a different team of prosecutors review the case. 

They also challenge the conclusion that Taneja threw the first punch, and think more investigating needs to be done to add additional context to what happened leading up to the video.

The U.S. Attorney’s office declined further comment beyond the letter notifying that they weren’t pressing charges.

Advertisement

FOX 5’s David Kaplan will have more at 10 p.m. and 11 p.m.



Source link

Continue Reading

Washington, D.C

Woman stabbed in Northeast DC

Published

on

Woman stabbed in Northeast DC


WASHINGTON (DC News Now) — The Metropolitan Police Department (MPD) said a woman was stabbed in Northeast D.C. early Sunday morning.

Police said that at about 1:40 a.m., they were dispatched to the 4000 block of Minnesota Avenue for the report of a stabbing.

Police said she had non-life-threatening injuries and was conscious and breathing. 

MPD said the victim chose not to be taken to a hospital for further treatment.

Advertisement



Source link

Continue Reading

Washington, D.C

Sponsored: Collaboration wins: Community leaders unify in Washington, D.C.

Published

on

Sponsored: Collaboration wins: Community leaders unify in Washington, D.C.


Community leaders stand in front of the U.S. Capitol for a photo during a trip to Washington, D.C., earlier this month. Representatives from the Cedar Rapids Metro Economic Alliance and Think Iowa City Inc. spent two days advocating for policies and projects to benefit the region, its businesses and its residents. (Submitted)

Each day we lead efforts to champion and promote the projects, products and people in our communities and throughout the region to support economic resiliency and growth.

We are a region rich with stories, like our aviation history that began with the Wright Brothers living here, to world-renowned education institutes producing great authors and athletes, to welcoming immigrants who’ve been at the foundation of many of our communities.

There is no shortage of stories that allow us to champion and promote the region.

Advertisement

Our stories came in handy earlier this month when we brought a regional delegation of business and community leaders to Washington, D.C., to advocate and promote our region and the communities within.

Some ask, “Why do you do this together?” or “Why stand behind another’s priorities that don’t directly impact your particular business or community?”

The simple fact is that the business community faces many common challenges, and, more importantly, has the same goals. We all want to see our communities thrive, our businesses grow and our workers and future workers succeed.

In public policy advocacy, there is power in numbers.

Together, we are represented by four federally elected officials, who are members of 11 powerful congressional committees, including Finance, Small Business, Appropriations, and Energy and Commerce.

Advertisement

Together, the Cedar Rapids Metro Economic Alliance and Greater Iowa City Inc. represent more than 4,000 business members that collectively employ over 100,000 workers.

We went to Washington with one unified bipartisan voice and message: championing each other’s projects and priorities to uplift our entire region.

As a group, we advocated for policies that will allow our region to attract and retain a skilled workforce and our businesses to remain competitive, including pushing to increase Pell Grant funding so more students have access to high-demand post-secondary degrees and training, including the trades.

Community leaders pause for a photo during a trip to Washington, D.C., earlier this month. Representatives from the Cedar Rapids Metro Economic Alliance and Think Iowa City Inc. spent two days advocating for policies and projects to benefit the region, its businesses and its residents. (Submitted)

Community leaders pause for a photo during a trip to Washington, D.C., earlier this month. Representatives from the Cedar Rapids Metro Economic Alliance and Think Iowa City Inc. spent two days advocating for policies and projects to benefit the region, its businesses and its residents. (Submitted)

We sought support for a joint grant application between the Eastern Iowa Airport (CID), Kirkwood Community College and Coe College to further their innovative efforts to build the aviation workforce pipeline.

We shared stories of how Collins Aerospace, as well as their local small business suppliers, will benefit from visa reform that will increase the number of high-skilled workers coming to our region.

Our region has proven that strong public-private partnerships have contributed to the growth of our communities, including new investments to plan for increasing our populations.

Advertisement

We urged continued support for crucial Eastern Iowa infrastructure projects that spur economic development and further our ability to remain competitive, including Forevergreen Road expansion, the Burlington Street Bridge replacement and completing Tower Terrace Road.

The return on investment of this trip goes beyond financial or monetary outcomes to the rich relationships we continue to build. We spent considerable time talking with our diligent and dedicated federal staff, hosted a reception promoting our region to 75 D.C.-based professionals with a connection to Eastern Iowa, and built stronger connections with each other.

Time is your friend when you travel as a group. Normally, you don’t have the chance to spend so much “off-time” with the mayor of a neighboring town, or see a small businessperson share a conversation with a university official at the Congressional Baseball Game for Charity or meet a recently retired Marine who attended our celebratory reception and is interested in returning home to Iowa.

Two quick days in our nation’s capital brought all that and more. We welcome all who wish to join our efforts. By showcasing our region as cohesive and collaborative, we will continue to achieve great things and have even more stories to tell.

Nancy Bird is president and CEO of Greater Iowa City Inc. Doug Neumann is the executive director of the Cedar Rapids Metro Economic Alliance.

Advertisement

Opinion content represents the viewpoint of the author or The Gazette editorial board. You can join the conversation by submitting a letter to the editor or guest column or by suggesting a topic for an editorial to editorial@thegazette.com





Source link

Continue Reading

Trending