Multifamily Cliff Drop
Commercial Observer
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There are a lot of apartments going up in the United States. That’s a good thing for a country suffering from a housing shortage. But that pipeline of new apartments is about to run dramatically dry. That’s a good thing for owners and investors in the multifamily space. Read about the dynamics of the looming multifamily cliff drop. Also for today: A major federal office lease in the Washington, D.C., area.
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— Tom Acitelli, Deputy Editor
Overbuilding in Multifamily Today Means a Lack of New Units Tomorrow
We’ve all seen the famous Warner Brothers cartoon and know the outcome by now: Wile E. Coyote, supplied with overconfidence, inches closer and closer to catching the elusive Road Runner, who is always just one step ahead of his grasp, and just when he’s about to grab him … The bottom drops out, the cliff opens, and the coyote plummets down into confusion and chaos. Don’t laugh yet, because this proverbial cliff in Looney Toons could be a good metaphor for the nation’s supply of multifamily housing. A July report from Yardi Matrix, a commercial real estate data firm, found that new unit deliveries of multifamily apartments nationwide will drop from 560,000 units in 2024 to 350,000 in 2026, and fall even further to 328,000 in 2027.
NIH Renews 124K SF Lease in Bethesda, Md.
The office of the National Institutes of Health is settling in for the long haul at its home in Bethesda, Md. The NIH, through the General Services Administration, has signed a 10-year lease renewal for its 123,750-square-foot office at 6555 Rock Spring Drive, a largely glass-covered complex dubbed The Atrium at Rock Spring Park. The asking rent was not disclosed. The complex is about three miles northwest of NIH’s main campus at 9000 Rockville Pike in Bethesda. MC Real Estate Partners is the landlord, represented by Merrill Turnbull, Brent Prossner, Jae Lee and Will Ruppe at Lincoln Property Company, while Gerrit Voogt and Joe Judge at JLL and Joe Callahan at GUV Commercial Real Estate represented the GSA/NIH.
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