THE NATIONAL ECONOMY THE NATIONAL ECONOMY Source: National - - PowerPoint PPT Presentation

THE NATIONAL ECONOMY

Source: National Association of Realtors, Delta Associates; October 2015.

THE NATIONAL ECONOMY

THE REGIONAL ECONOMY

PAYROLL JOB GROWTH

Selected Large Metro Areas | 12 Months Ending July 2015

T H O U S A N D S O F N E W PAY R O L L J O B S

Source: Bureau of Labor Statistics, Delta Associates; October 2015.

72.3 50 100 150 200 250 LA Basin NY SF Bay DFW Atl Was S Fla Chi Phx Hou Bos Den

0% 1% 2% 3% 4% 5% 6% 7% 8% 9% Den DFW SF Bay Bos Was Hou NY Phx S Fla Chi Atl LA Basin July 2014 July 2015

U N E M P L O Y M E N T R AT E *

National Rate* 6.5% 5.6%

YoY Basis Point Change

UNEMPLOYMENT RATE

Selected Large Metro Areas | July 2014 vs. July 2015

*Not seasonally adjusted.

• 140
• 150
• 140
• 90
• 60
• 120
• 70
• 70
• 100
• 120
• 130
• 100

Source: Bureau of Labor Statistics, Delta Associates; October 2015.

PROJECTED JOB GROWTH

Washington Metro Area

T H O U S A N D S O F N E W PAY R O L L J O B S

Source: Bureau of Labor Statistics, Dr. Stephen Fuller, Delta Associates; October 2015.

• 60
• 40
• 20

20 40 60 80 100 120 140 00 01 02 03 04 05 06 07 08 09 10 11 12 13 14 15 16 17 18 19 District of Columbia Suburban Maryland Northern Virginia

20-Year Annual Average = 41,700/Year 5-Year Projected Average = 47,300/Year

PROJECTED JOB GROWTH

Washington Metro Area

T H O U S A N D S O F N E W PAY R O L L J O B S

• 60
• 40
• 20

20 40 60 80 100 120 140 00 01 02 03 04 05 06 07 08 09 10 11 12 13 14 15 16 17 18 19 District of Columbia Suburban Maryland Northern Virginia More office jobs, higher wages Lower wages, more renters

Source: Bureau of Labor Statistics, Dr. Stephen Fuller, Delta Associates; October 2015.

(60) (40) (20) 20 40 60 80 Thousands 2008-2009 2010-2013

PAYROLL JOB CHANGE BY WAGE

Washington Metro Area

Higher-Wage Mid-Wage Lower-Wage J O B C H A N G E I N T H O U S A N D S

Source: Dr. Stephen Fuller, Delta Associates; October 2015

J O B C H A N G E

PAYROLL JOB GROWTH

Washington Metro Area | 12 Months Ending July 2015

Source: Bureau of Labor Statistics, Delta Associates; October 2015.

• 5,000

1,000 7,000 13,000 19,000 25,000 Financial Activities Manufacturing Wholesale Trade Information Federal Government Construction/Mining Transportation/Utilities Other Services Retail Trade Leisure/Hospitality State and Local Government Professional/Business Services Education/Health

76,700

• 2,900

• 5,000

1,000 7,000 13,000 19,000 25,000 Financial Activities Manufacturing Wholesale Trade Information Federal Government Construction/Mining Transportation/Utilities Other Services Retail Trade Leisure/Hospitality State and Local Government Professional/Business Services Education/Health

JOBS THAT SUPPORT CLASS A APARTMENTS AND CONDOMINIUMS

Washington Metro Area | 12 Months Ending July 2015

J O B C H A N G E

Source: Bureau of Labor Statistics, Delta Associates; October 2015.

• 5,000

1,000 7,000 13,000 19,000 25,000 Financial Activities Manufacturing Wholesale Trade Information Federal Government Construction/Mining Transportation/Utilities Other Services Retail Trade Leisure/Hospitality State and Local Government Professional/Business Services Education/Health

J O B C H A N G E

JOBS THAT SUPPORT CLASS B APARTMENTS

Washington Metro Area | 12 Months Ending July 2015

Source: Bureau of Labor Statistics, Delta Associates; October 2015.

DEMOGRAPHIC SHIFTS AND TENANT & BUYER PROFILE

RENTER PREFERENCE

Renter Households | Washington Metro vs. United States R E N T E R S A S A P E R C E N TA G E O F T O TA L H O U S E H O L D S 28% 29% 30% 31% 32% 33% 34% 35% 36% 37% 2006 2007 2008 2009 2010 2011 2012 2013 2014 U.S. WASHINGTON METRO Y E A R

Source: U.S. Census Bureau, Delta Associates; October 2015.

OWN vs. RENT RESIDENCE

United States 54% 20% 0% 10% 20% 30% 40% 50% 60% 70% 80% 90% 100% Millennials Baby Boomer

Own Rent

P E R C E N T O F G E N E R AT I O N

Source: 2013 ULI/BRS National Survey, Delta Associates; October 2015.

15.7% 11% 12% 13% 14% 15% 16%

P E R C E N T O F P O P U L AT I O N 2 5 - 3 4 Y E A R S O L D

SHARE OF POPULATION BETWEEN 25 – 34 YEARS OLD

Largest Metro Areas

Source: U.S. Census Bureau, Delta Associates; October 2015.

Arlington County: 28% City of Alexandria: 24% The District: 23%

CLASS A TENANT PROFILE

Washington Metro Area

Source: The Bozzuto Group, Delta Associates; October 2015.

NEW TENANT PROFILE

District of Columbia

Source: The Bozzuto Group, Delta Associates; October 2015.

51% 36% 27% 26% 10% 0% 20% 40% 60% District RB Corridor Bethesda Pentagon City Reston

S H A R E O F R E S I D E N T S W I T H O U T C A R S

CHANGING DEMAND PATTERNS

Residents Without Cars in Apartments

Source: Kettler, The Bozzuto Group, Delta Associates; October 2015.

AVERAGE UNIT SIZE

Newly Delivered Class A High-Rise Apartments – Selected Submarkets

AV E R A G E U N I T S I Z E ( S Q U A R E F E E T )

700 720 740 760 780 800 820 840 860 880 900 2000 2014-2015 RB Corridor District

Source: Delta Associates; October 2015.

APARTMENTS

Changing Nature of Space

CLASS B TENANT PROFILE

Washington Metro Area

Source: ROSS Companies, Delta Associates; October 2015.

Source: National Association of Realtors, Delta Associates; October 2015.

CONDO BUYER PROFILE

National

THE WASHINGTON METRO AREA APARTMENT MARKET

5,907 1,000 2,000 3,000 4,000 5,000 6,000 7,000 8,000 9,000 10,000 DFW Hou Was Atl LA Phx Balt Phil Chi Pgh L O N G T E R M A N N U A L A B S O R P T I O N O F A L L C L A S S E S O F U N I T S

Note: Excludes NY metro to conserve scale.

LONG TERM ANNUAL APARTMENT ABSORPTION

National Market Leaders

Source: REIS, Delta Associates; October 2015.

Past 12 Months: 14,775 Class A Only Past 12 Months: 14,137 Class B Only Past 12 Months: 638

CLASS B APARTMENT ABSORPTION

Washington Metro Area

• 6,000
• 4,000
• 2,000

2,000 4,000 6,000 Q1 2011 Q2 2011 Q3 2011 Q4 2011 Q1 2012 Q2 2012 Q3 2012 Q4 2012 Q1 2013 Q2 2013 Q3 2013 Q4 2013 Q1 2014 Q2 2014 Q3 2014 Q4 2014 Q1 2015 Q2 2015 Q3 2015 C L A S S B A PA R M E N T U N I T S

Source: Delta Associates; October 2015. Note: Each quarter shows absorption over the past 12 months.

CLASS A APARTMENT ABSORPTION

Washington Metro Area

2,000 4,000 6,000 8,000 10,000 12,000 14,000 16,000 05 06 07 08 09 10 11 12 13 14 15* 16 17 18 C L A S S A A PA R M E N T U N I T S

*12 months ending September 2015.

Long-Term Average = 6,595 Average Since 2008 = 7,920

Source: Delta Associates; October 2015.

Annual Average ~ 10,300

ABSORPTION PACE PER PROJECT PER MONTH

Class A Projects in Initial Lease-Up | Washington Metro Area

15 25 35 45 55 65 75 85 2 4 6 8 10 12 14 16 18 20 9/09 9/10 9/11 9/12 9/13 9/14 9/15 N U M B E R O F P R O J E C T S I N A C T I V E L E A S E U P M O N T H LY A B S O R P T I O N PA C E P E R P R O J E C T S I N C E M A R K E T I N G B E G A N

Source: Delta Associates; October 2015.

3.3% 0.0% 1.0% 2.0% 3.0% 4.0% 5.0% 6.0% 7.0% NY Wash LA Phi Chi Balt Phx DFW Hou Atl VA C A N C Y R AT E ( A L L C L A S S E S )

STABILIZED APARTMENT VACANCY RATES

Major Apartment Markets at Third Quarter 2015

National Rate 4.2%

Source: REIS, Delta Associates; October 2015.

Class A Only: 3.6% Class B Only: 2.8%

• 4%
• 2%

0% 2% 4% 6% 8% 10% 2008 2009 2010 2011 2012 2013 2014 2015* Q2 2015 E F F E C T I V E R E N T G R O W T H

Long Term Average Rent Growth = 4.2%

3.6%

*12 months ending September 2015.

ANNUAL EFFECTIVE RENT GROWTH

Class A Apartments | Washington Metro Area

0.5%

Source: Delta Associates; October 2015.

WA S H I N G T O N M E T R O U . S .

Combined Class A & B Rent Growth = 1.0%

EFFECTIVE RENT AND VACANCY RATE

Class B Apartments | Washington Metro Area $1,000 $1,100 $1,200 $1,300 $1,400 $1,500 $1,600 $1,700 1.5% 2.0% 2.5% 3.0% 3.5% 4.0% 4.5% 5.0% 5.5% 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015* Average Effective Base Rent Vacancy

AV E R A G E E F F E C T I V E B A S E R E N T VA C A N C Y R AT E

Source: Delta Associates; October 2015. * As of Third Quarter.

CLASS A APARTMENT UNIT STARTS

Washington Metro Area | 2013 - 2015

1,000 2,000 3,000 4,000 5,000 6,000 7,000 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 District Sub MD No VA

Class A Projected Quarterly Absorption ~ 2,600

N U M B E R O F C L A S S A M A R K E T R AT E U N I T S 2013 2014 2015

Source: Delta Associates; October 2015.

PROJECTS CURRENTLY UNDER CONSTRUCTION

District of Columbia

In Lease-up Not Yet Leasing Projects Under Construction

Source: Delta Associates; October 2015.

500 1,000 1,500 2,000 2,500 3,000 3,500 4,000 4,500

Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 District Sub MD No VA

PROJECTED DELIVERIES

36-Month Development Pipeline | Washington Metro Area | 2015 - 2018

N U M B E R O F C L A S S A M A R K E T R AT E U N I T S

Class A Projected Quarterly Absorption ~ 2,600

2 0 1 5 2 0 1 7 2 0 1 6 2 0 1 8

Source: Delta Associates; October 2015.

APARTMENT PROPERTIES UNDERGOING RENOVATION

Washington Metro Area 15,285 5,000 10,000 15,000 20,000 25,000 30,000 35,000 40,000

Source: Delta Associates; October 2015. * As of Third Quarter.

N U M B E R O F U N I T S

CURRENT RENOVATION ACTIVITY

Low-Rise Class B Apartment Submarkets

1,000 – 1,499 1,500+ # of Units Under Major Renovation 500 – 999 < 500

Source: Delta Associates; October 2015.

1,000 – 1,499 1,500+ # of Units Under Major Renovation 500 – 999 < 500

CURRENT RENOVATION ACTIVITY

High-Rise Class B Apartment Submarkets

Source: Delta Associates; October 2015.

36-MONTH APARTMENT DEVELOPMENT PIPELINE

Washington Metro Area

5,000 10,000 15,000 20,000 25,000 30,000 35,000 40,000 45,000 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015* M A R K E T R AT E U N I T S P L A N N E D A N D U N D E R C O N S T R U C T I O N

Source: Delta Associates; October 2015. * As of Third Quarter.

2 4 6 8 10 12 14 No VA Sub MD The District Net Absorption: 10,333/Year = 31,000

DEMAND SUPPLY

Planned and may deliver by 9/18: 5,579 units

1

Under construction: 29,044 units

2

Total = 34,623 units

1 Probable supply after projected attrition. 2 Includes unleased units at projects in lease-up.

3.6% 3.4% 4.1% Projected Stabilized Vacancy % at September 2018 Projected Stabilized Vacancy Rate at Sept. 2018: 3.6% Metro-Wide

MARKET RATE UNITS IN THOUSANDS

DEMAND AND SUPPLY PROJECTIONS

Washington Metro Area Class A Apartments 36 Months Ending September 2018

Source: Delta Associates; October 2015.

• 4%
• 2%

0% 2% 4% 6% 8% 10% 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015* 2016 2017 2018

ANNUAL CLASS A APARTMENT RENT GROWTH

Washington Metro Area P E R C E N T E F F E C T I V E R E N T G R O W T H

* Annual rent change at Third Quarter 2015 is 0.5%.

Long-Term Average = 4.2%

Source: Delta Associates; October 2015.

THE BALTIMORE METRO AREA APARTMENT MARKET

500 1,000 1,500 2,000 2007 2008 2009 2010 2011 2012 2013 2014 2015* 2016 2017 2018 979

C L A S S A A PA R T M E N T U N I T S

*12 Months Ending September 2015

CLASS A APARTMENT ABSORPTION

Baltimore Metro Area

Source: Delta Associates; October 2015.

Long Term Average = 812 Annual Average = 975

EFFECTIVE RENT AND VACANCY RATE

Class A Apartments | Baltimore Metro Area

$700 $800 $900 $1,000 $1,100 $1,200 $1,300 $1,400 $1,500 $1,600 $1,700 0% 1% 2% 3% 4% 5% 6% 7% Average Effective Base Rent Stabilized Vacancy

S TA B I L I Z E D VA C A N C Y R AT E AV E R A G E E F F E C T I V E B A S E R E N T

4 . 3 % / Y E A R L O N G - T E R M R E N T G R O W T H

* As of Third Quarter. Source: Delta Associates; October 2015.

1,000 2,000 3,000 4,000 5,000 6,000 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015*

36-MONTH APARTMENT DEVELOPMENT PIPELINE

Baltimore Metro Area

M A R K E T R AT E U N I T S P L A N N E D A N D U N D E R C O N S T R U C T I O N

Source: Delta Associates; October 2015. * As of Third Quarter.

1,000 2,000 3,000 4,000 5,000 6,000

DEMAND AND SUPPLY PROJECTIONS

Baltimore Metro Area Class A Apartments 36 Months Ending September 2018

Net Absorption: 975/Year = 2,925

D E M A N D S U P P LY

Planned and may deliver by 9/18: 1,768 units

1

Under construction: 3,196 units

2

Total = 4,964 units

Baltimore Metro Area

M A R K E T R AT E U N I T S

1 Probable supply after projected attrition. 2 Includes unleased units at projects in lease-up. Source: Delta Associates; October 2015.

Projected Stabilized Vacancy Rate at Sept. 2018: 4.0% Metro-Wide

0% 2% 4% 6% 8% 10% 12% Long-Term Average = 4.3%

* Annual rent growth at Third Quarter 2015 is 2.2%

ANNUAL CLASS A APARTMENT RENT GROWTH

Baltimore Metro Area P E R C E N T E F F E C T I V E R E N T G R O W T H

Source: Delta Associates; October 2015.

THE WASHINGTON/BALTIMORE AREA CAPITAL MARKETS

$0.0 $1.0 $2.0 $3.0 2011 2012 2013 2014 2015* Class A Class B

I N B I L L I O N S O F D O L L A R S

APARTMENT INVESTMENT SALES

Washington Metro Area | Class A and Class B

*Sales through September annualized. Source: Delta Associates; October 2015.

$0 $50 $100 $150 $200 $250 $300 $350 2011 2012 2013 2014 2015*

I N M I L L I O N S O F D O L L A R S

APARTMENT INVESTMENT SALES

Baltimore Metro Area | Class A

*Sales through September annualized. Source: Delta Associates; October 2015.

$0 $50 $100 $150 $200 $250 $300 $350 $400 2011 2012 2013 2014 2015* Thousands Wash Class A Balt Class A Wash Class B

*Sales through September

AVERAGE SALES PRICE PER UNIT

Washington and Baltimore Metro Areas | Class A and Class B

Source: Delta Associates; October 2015.

P R I C E P E R U N I T ( I N T H O U S A N D S )

THE WASHINGTON/BALTIMORE AREA APARTMENT MARKET OPPORTUNITIES

YEARS OF SUPPLY

Low-Rise Class A Submarkets | Washington Metro Area

Source: Delta Associates; October 2015.

1 – 1.9 Less than 1 2 – 2.9 3 – 3.9 Years of Supply

YEARS OF SUPPLY

High-Rise Class A Submarkets | Washington Metro Area

Source: Delta Associates; October 2015.

1 – 1.9 Less than 1 2 – 2.9 3 – 3.9 Years of Supply

UPGRADE WELL- LOCATED CLASS B ASSETS

OPPORTUNITIES DURING THIS CYCLE

Washington/Baltimore Area Apartment Market

Source: Delta Associates; October 2015.

REPURPOSE OR BUILD NEW ASSETS THAT APPEAL TO MILLENNIAL PREFERENCES

Source: Delta Associates; October 2015.

OPPORTUNITIES DURING THIS CYCLE

Washington/Baltimore Area Apartment Market

ACCOMMODATE WORK-AT-HOME TENANTS

Source: Delta Associates; October 2015.

OPPORTUNITIES DURING THIS CYCLE

Washington/Baltimore Area Apartment Market

BUILD NEW UNITS THAT APPEAL TO EMPTY- NESTERS/ BABY BOOMERS

Source: Delta Associates; October 2015.

OPPORTUNITIES DURING THIS CYCLE

Washington/Baltimore Area Apartment Market

RECOMMENDED DEVELOPMENT TIMING

Washington and Baltimore Metro Areas

2018 2017 2016 2015

A PA RT M E N T S

= Site Assembly = Construction = Delivery

Source: Delta Associates; October 2015.

THE WASHINGTON METRO AREA CONDOMINIUM MARKET

Source: U.S. Census Bureau, Delta Associates; October 2015.

100 200 300 400 500 600 700 NY S Fla Chi LA Basin Was Bos SF Bay TB

125

T H O U S A N D S O F U N I T S

LARGEST CONDOMINIUM MARKETS

Select Metro Areas

500 1,000 1,500 2,000 2,500 3,000 3,500 4,000 4,500 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 Suburbs District

N U M B E R O F U N I T S

ANNUAL NEW CONDOMINIUM SALES

Washington Metro Area

Source: Delta Associates; October 2015. Note: Sales are 12 months ending September of each year.

1,384 1,800

*Sales through August annualized.

ANNUAL CONDOMINIUM RESALES TREND

Washington Metro Area 8,000 10,000 12,000 14,000 16,000 2008 2009 2010 2011 2012 2013 2014 2015*

N U M B E R O F U N I T S S O L D

14,753

Source: Delta Associates; October 2015.

Average Since 2013 = 14,362 Average From 2008 - 2012 = 11,280

• 6%
• 4%
• 2%

0% 2% 4% 6% 8% 10% 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 * 2016

% CHANGE

5.0%

EFFECTIVE NEW CONDO SALES PRICE CHANGE

Washington Metro Area | 2005 - 2015

* 12 months ending September.

1.8%

Source: Delta Associates; October 2015.

EFFECTIVE NEW CONDO SALES PRICE CHANGE

Washington Metro Area | 2005 - 2016

$1,290 $835 $680 $600 $485 $475 $290 $285 $170 $0 $200 $400 $600 $800 $1,000 $1,200 $1,400 Upper NW DC Central DC Mideast DC Mont Cap East DC Arl/Alex Ffx/FC

• Pr. George's

Lou/PrWm

NEW CONDOMINIUM PRICES PER SF

Washington Metro Area | Third Quarter 2015

AVERAGE PRICE PER SF

Source: Delta Associates; October 2015.

$1,781 $1,340 $1,290 $835 $772 $749 $644 $425 $0 $300 $600 $900 $1,200 $1,500 $1,800 Manhattan San Francisco Upper NW DC Central DC L.A. Seattle San Diego Baltimore City

NEW CONDOMINIUM PRICES PER SF

Selected Downtown Areas in the U.S. | Third Quarter 2015

* Third Quarter 2015 except for Manhattan, which is as of Second Quarter 2015.. Source: The Mark Company, StreetEasy, Delta Associates, October 2015.

AVERAGE PRICE PER SF*

4.9%

• 10%
• 5%

0% 5% 10% 15% 20% 25% 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015*

% CHANGE

RESALE CONDO SALES PRICE CHANGE

Washington Metro Area | 2005 - 2015

* 12 months ending August. Source: Delta Associates; October 2015.

2,000 4,000 6,000 8,000 10,000 2008 2009 2010 2011 2012 2013 2014 2015

# O F U N I T S

3,834

Note: Number of units are for September of each year.

NEW CONDOS ACTIVELY MARKETING OR UNDER CONSTRUCTION

Washington Metro Area

Source: Delta Associates; October 2015.

15.5

10 20 30 40 50 60 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015*

MONTHS OF SUPPLY

MONTHS OF NEW CONDOMINIUM SUPPLY

Washington Metro Area | 2005 - 2015

Source: Delta Associates; October 2015.

MONTHS OF INVENTORY BY SUBMARKET

Washington Metro Area

Source: Delta Associates; October 2015.

500 1,000 1,500 2,000 2,500 3,000 3,500 4,000

The District No VA Sub MD

Net Sales: 2,200/Year = 6,600 units

D E M A N D SUPPLY

Planned and May Begin Marketing by 9/18: 2,436 units

1

Under Construction and/or Marketing: 3,834 units

2

Total = 6,270 units M A R K E T R AT E U N I T S

DEMAND AND SUPPLY PROJECTIONS

Washington Metro Area Condominiums 36 Months Ending September 2018

1 Probable supply after projected attrition. 2 Includes unleased units at projects in lease-up. Source: Delta Associates; October 2015.

THE BALTIMORE METRO AREA CONDO MARKET

100 200 300 400 500 600 700 800 2007 2008 2009 2010 2011 2012 2013 2014 2015 155

ANNUAL NEW CONDOMINIUM SALES

Baltimore Metro Area

Note: Sales are 12 months ending September of each year. Source: Delta Associates; October 2015.

N U M B E R O F U N I T S

• 10%
• 8%
• 6%
• 4%
• 2%

0% 2% 4% 6% 8% 2007 2008 2009 2010 2011 2012 2013 2014 2015*

% CHANGE

* 12 months ending September.

EFFECTIVE NEW CONDO SALES PRICE CHANGE

Baltimore Metro Area | 2007 - 2015

Source: Delta Associates; October 2015.

36-MONTH CONDO DEVELOPMENT PIPELINE

Baltimore Metro Area

1,000 2,000 3,000 4,000 5,000 6,000 7,000 8,000 9,000 10,000 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 C O N D O U N I T S P L A N N E D A N D U N D E R C O N S T R U C T I O N

*As of September each year Source: Delta Associates; October 2015.

MONTHS OF INVENTORY BY SUBMARKET

Baltimore Metro Area

Source: Delta Associates; October 2015.

THE WASHINGTON/BALTIMORE AREA CONDO MARKET OPPORTUNITIES

Source: Delta Associates; October 2015.

OPPORTUNITIES DURING THIS CYCLE

Washington/Baltimore Area Condo Market

M AT C H N E W D E S I G N A N D P R I C I N G T O T H E P O T E N T I A L P O O L O F F I R S T- T I M E B U Y E R S

Source: Delta Associates; October 2015.

OPPORTUNITIES DURING THIS CYCLE

Washington/Baltimore Area Condo Market

S U P E R I O R L O C AT I O N S W I T H S T R O N G F U N D A M E N TA L S A N D D E S I G N W I T H L A R G E R R O O M S C A N A P P E A L T O E M P T Y N E S T E R S

Source: Delta Associates; October 2015.

OPPORTUNITIES DURING THIS CYCLE

Washington/Baltimore Area Condo Market

C R E AT E P L A C E - M A K I N G P R O J E C T S I N A P P E A L I N G M I X E D - U S E S E T T I N G S

Source: Delta Associates; October 2015.

S W E E T S P O T: 8 0 – 1 3 0 U N I T S / P R O J E C T

OPPORTUNITIES DURING THIS CYCLE

Washington/Baltimore Area Condo Market

RECOMMENDED DEVELOPMENT TIMING

Washington and Baltimore Metro Areas

2018 2017 2016 2015

C O N D O S

= Site Assembly = Construction = Delivery

Source: Delta Associates; October 2015.