The dance of dollars: Exploring investment volume by property type in the DC Metro Region

Bar graph comparing the 10 year average investment volume of office, industrial, retail, multifamily, and other service lines
Investment sales by property type and year

The DC Metro Region, echoing a similar national trend, has seen heavily suppressed investment volume as we approach the halfway point of 2023. Despite structural shifts, the region saw near-record levels of investment in both 2021 and 2022, however, upon a closer look, the underlying fundamentals shifted heavily, with investors deviating from more traditional product types such as office and pivoting into more alternative product types such as industrial and multifamily. What is particularly noteworthy is the resurgence of retail as an investment vehicle, which reached a near-high in 2022 with over $2.6B in investment volume.  

While rising interest rates have virtually derailed investment efforts in 2023, (reflected in severely limited transactional activity in 2023) signs of hope are beginning to emerge such as record levels of dry powder. The question mark remains, how do investors approach office? Over the past decade, office has captured an overwhelming percent of regional investment dollar, and with structural shifts as it relates to the way we work seemingly here to stay, investors will likely refocus their efforts to be more in line with broader macroeconomic trends. Somebody will be the beneficiary of this, but who? That is the question.

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