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Pandemic Fallout Could Wipe Out Most of DC’s 2019 Job Gains
The Washington, D.C. region’s unemployment rate reached an historic low of 3.1% at the start of 2020, indicating a sturdy regional economy. However, NKF says the region’s GDP is likely to decline for the remainder of the year, due to fallout from the coronavirus pandemic.
The economic downturn resulting from the pandemic will likely wipe out most of the employment gains seen over the past 12 months, according to NKF. The region added 46,100 jobs in the 12 months ended Jan. 31, and is forecast to lose 36,000 positions during the balance of 2020.
From 2021 through 2024, job growth averaging 20,100 per annum is expected as the economy stabilizes.
In the interim, NKF says that office fundamentals in the region are likely to soften. A substantial pipeline of new deliveries will produce mixed results in terms of pre-leasing, which has been better lately in Maryland and Virginia than D.C.
For comments, questions or concerns, please contact Paul Bubny
- ◦Economy
