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THIRD QUARTER 2014

DELTA ASSOCIATES

MID-ATLANTIC

CLASS A APARTMENT

MARKET REPORT

SPONSORED BY

THIRD QUARTER 2014

DELTA ASSOCIATES

MID-ATLANTIC

CLASS A APARTMENT

MARKET REPORT

By Subscription Only

Prepared For Exclusive Use of Subscribers

On September 30, 2014

SPONSORED BY

© Delta Associates, 2014. All rights reserved.You may neither copy nor disseminate this report. If quoted, proper attribution is required.

Please see www.DeltaAssociates.com for more information on our reports.

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DELTA ASSOCIATES | MID-ATLANTIC CLASS A APARTMENT MARKET REPORT | THIRD QUARTER 2014 | NOT FOR REDISTRIBUTION

1. STATE OF THE ECONOMY AND WASHINGTON/BALTIMORE CONDOMINIUM MARKET The National Economy . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 3

The Washington Area Economy . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 13

The Baltimore Area Economy . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 19.

An Overview of the Washington/Baltimore Condominium Market . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 24

2. STATE OF THE MID-ATLANTIC CLASS A APARTMENT MARKET A Snapshot of the Class A Apartment Market . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 28.

State of the Mid-Atlantic Class A Apartment Market . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 29.

Table A: Projected Third Quarter 2017 Class A Vacancy Rate – Washington Metro Area . . . . . . . . . . . . . . . . . . 40

Table B: NCREIF Return Index for Apartment Properties U .S . Apartment Income vs . Pricing . . . . . . . . . . . . . . 41

Table C: Market-Rate Rental Properties in Washington MSA . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 42

Table D: Market-Rate Rental Properties in the United States . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 43

Mind the Gap . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 44

3. WASHINGTON STATISTICAL REPORT Table 3 .1: Estimated Effective Rent and Stabilized Vacancy Rate for Washington Metro Area . . . . . . . . . . . . . 47

Table 3 .1 .1: Rent Increase for Washington Metro Area . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 48.

LOW-RISE MARKET INDICATORS

Table 3 .2: Washington Metro Area . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 49.

Table 3 .3: Northern Virginia – Close-In Submarkets . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 50

Table 3 .4: Northern Virginia – Outer Submarkets . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 51

Table 3 .5: Suburban Maryland – Close-In Submarkets . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 52

Table 3 .6 Suburban Maryland – Outer Submarkets . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 53

MID- & HIGH-RISE MARKET INDICATORS

Table 3 .7: Washington Metro Area . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 54

Table 3 .8.: Northern Virginia . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 55

Table 3 .9.: Suburban Maryland . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 56

Table 3 .10: District of Columbia . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 57

ABSORPTION SUMMARY

Table 3 .11: New, Actively Marketing Projects . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 58.

Table 3 .12: Recently Stabilized Projects . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 60

NORTHERN VIRGINIA NEW CONSTRUCTION PIPELINE

Table 3 .13: Apartment Projects Under Construction and/or Marketing . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 62

Table 3 .14: Planned Apartment Projects That Could Be Delivered within 36 months . . . . . . . . . . . . . . . . . . . 64

Table 3 .15: Longer Term Planned Apartment Projects . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 66

TABLE OF CONTENTS


TABLE OF CONTENTS

3. WASHINGTON STATISTICAL REPORT (CONTINUED) SUBURBAN MARYLAND NEW CONSTRUCTION PIPELINE

Table 3 .16: Apartment Projects Under Construction and/or Marketing . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 68.

Table 3 .17: Planned Apartment Projects That Could Be Delivered within 36 months . . . . . . . . . . . . . . . . . . . . 70

Table 3 .18.: Longer Term Planned Apartment Projects . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 72

DISTRICT OF COLUMBIA NEW CONSTRUCTION PIPELINE

Table 3 .19.: Apartment Projects Under Construction and/or Marketing . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 74

Table 3 .20: Planned Apartment Projects That Could Be Delivered within 36 months . . . . . . . . . . . . . . . . . . . . 76

Table 3 .21: Longer Term Planned Apartment Projects . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 78.

MULTIFAMILY BUILDING AND LAND SALES

Table 3 .22: 2013 Apartment Building Sales . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 8.0

Table 3 .23: 2014 Apartment Building Sales . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 8.1

Table 3 .24: 2013 Land Sales . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 8.2

Table 3 .25: 2014 Land Sales . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 8.3

4. BALTIMORE STATISTICAL REPORT MARKET INDICATORS

Table 4 .1: Baltimore Metro Area . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 8.7

Table 4 .2: City of Baltimore . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 8.8.

ABSORPTION SUMMARY

Table 4 .3: New, Actively Marketing Projects . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 8.9.

Table 4 .4: Recently Stabilized Projects . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 9.0

BALTIMORE METRO AREA NEW CONSTRUCTION PIPELINE

Table 4 .5: Apartment Projects Under Construction and/or Marketing . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 9.1

Table 4 .6: Planned Apartment Projects That Could Be Delivered within 36 months . . . . . . . . . . . . . . . . . . . . . 9.2

Table 4 .7: Longer Term Planned Apartment Projects . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 9.3

MULTIFAMILY BUILDING SALES

Table 4 .8.: 2013 Apartment Building Sales . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 9.4

Table 4 .9.: 2014 Apartment Building Sales . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 9.5


5. PHILADELPHIA STATISTICAL REPORT MARKET INDICATORS

Table 5 .1: Philadelphia Metro Area . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 9.9.

Table 5 .2: Suburban Pennsylvania . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 100

Table 5 .3: Southern New Jersey . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 101

Table 5 .4: Center City Philadelphia . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 102

ABSORPTION SUMMARY

Table 5 .5: New, Actively Marketing Projects . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 103

Table 5 .6: Recently Stabilized Projects . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 104

CITY CENTER PHILADELPHIA NEW CONSTRUCTION PIPELINE

Table 5 .7: Apartment Projects Under Construction and/or Marketing . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 105

Table 5 .8.: Planned Apartment Projects That Could Be Delivered within 36 months . . . . . . . . . . . . . . . . . . . . 106

Table 5 .9.: Longer Term Planned Apartment Projects . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 107

MULTIFAMILY BUILDING SALES

Table 5 .10: 2013 Apartment Building Sales . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 108.

Table 5 .11: 2014 Apartment Building Sales . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 109.

6. EXPLANATION OF GEOGRAPHIC COVERAGE AND METHODOLOGY Class A Apartments . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 113

Apartment Submarket Maps . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 115

Photography Credits . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 122

TABLE OF CONTENTS


Although the information contained herein is based on sources which Delta Associates (DA) and Transwestern (TW) believe to be reliable, DA and TW make no representation or warranty that such information is accurate or complete. All prices, yields, analyses, computations, and opinions expressed are subject to change without notice. Under no circumstances should any such information be considered representations or warranties of DA or TW of any kind. Any such information may be based on assumptions which may or may not be accurate, and any such assumption may differ from actual results. This report should not be considered investment advice.

MID-ATLANTIC MULTIFAMILY TEAM

MULTIFAMILY SALES:Executive Vice President, Director Dean Sigmon 301-8.9.6-9.08.9.

Executive Vice President, Director Robin Williams 301-8.9.6-9.070

Vice President Justin Shay 301-8.9.6-9.08.2

Marketing Associate Katie Rubino 301-8.9.6-9.069.

MID-ATLANTIC LEADERSHIP:Executive Managing Director- Market Leader Phil McCarthy 301 .8.9.6 .9.011

Executive Managing Director- Market Leader Keith Foery 301 .8.9.6 .9.028.

Managing Senior Vice President David Popp 301 .8.9.6 .9.048.

Managing Senior Vice President Ray Hite 301 .8.9.6 .9.023

TEAM

MULTIFAMILY PRACTICE TEAM

Senior Vice President, Multifamily Practice Director William E . L . Rich 703-535-3545

Senior Associate Justin Donaldson

Associate Kayla Bruun

Associate Luke Gelber

Associate Rachelle Sarmiento

EDITOR AND CHIEF EXECUTIVE: Gregory H . Leisch, CRE 703-8.36-5700

OF COUNSEL, ECONOMICS: Dr . Stephen S . Fuller 703-9.9.3-318.6

Although the information contained herein is based on sources which Delta Associates (DA) believe to be reliable, DA makes no representation or warranty that such information is accurate or complete. All prices, yields, analyses, computations, and opinions expressed are subject to change without notice. Under no circumstances should any such information be considered representations or warranties of DA of any kind. Any such information may be based on assumptions which may or may not be accurate, and any such assumption may differ from actual results. This report should not be considered investment advice.


AVAILABLE REPORTS FROM DELTA ASSOCIATES

MID-ATLANTIC CLASS A APARTMENT MARKET REPORT Market Coverage: Washington Metro, Baltimore Metro, Philadelphia Metro

A comprehensive report on apartment market conditions, focusing on the following indicators:

• Analysis of the national and regional economies

• Regional condo market summary

• Key market statistics for 47 submarkets and regional totals for:

• Current rents and rent change

• Vacancy

• Concessions

• Class A apartment building sales

Additional indicators analyzed in the Third Quarter and Year-End reports:

• Third Quarter Report: Comparison of median revenue,

expense, and net operating income data for the USA

and Washington MSA .

• Year-End Report: Market-maker survey on capitalization

rates, hard and soft development costs, investment posture,

thoughts on the economy, and more

WASHINGTON METROPOLITAN AREA CLASS B APARTMENT MARKET REPORT

A comprehensive report on apartment market conditions, focusing on the following indicators:




• Vacancy

• Concessions

• Renovation information including budget and timetable

• Class B apartment building sales

Additional indicators analyzed in the Year-End report:

• Year-End Report: Market-maker survey on capitalization rates, investment posture, thoughts on the economy, and more .

WASHINGTON/BALTIMORE CONDOMINIUM MARKET REPORTMarket Coverage: Washington Metro and Baltimore Metro

A comprehensive report on condominium market conditions, focusing on the following indicators:


• Regional apartment market summary


• Sales trends for new and resale condos

• Historic condominium price changes

• Pipeline trends

• Additional data include:

• Absorption pace

• Multifamily building and land sales

Additional indicators analyzed in the Third Quarter and Year-End reports:

• Third Quarter Report: Comparison of median condo

expenses in the Washington MSA and Mid-Atlantic region

• Year-End Report: Market-maker survey on

capitalization rates, investment posture, thoughts

on the economy, and more .

MULTIFAMILY MARKET



• Market-maker survey on capitalization rates, investment posture, thoughts on the economy, and more

COMMERCIAL MARKET

WASHINGTON/BALTIMORE OFFICE MARKET REPORTMarket Coverage: Washington Metro and Baltimore Metro

A comprehensive quarterly report on office market conditions, focusing on the following indicators:


• Metro-level and substate area (Northern Virginia, Suburban

Maryland, District of Columbia) office market summaries

• Key market statistics (All Space and Class A Space) for all

major submarkets and regional totals for:

• Net absorption

• Vacancy

• Construction


• Supply/demand analysis

• Rental rate and tenant improvement data

• Average lease terms and operating expenses

• Delivered, proposed, and planned SF

• Building and land sales

• Investment returns

• Cap rate trends

Additional indicators analyzed in the Year-End report:

• Market-maker survey on capitalization rates, hard & soft development costs, investment posture, thoughts on the economy,

and more

• Development economics

Special supplements to the report have included:

• Analysis of Federal bailout/stimulus spending

• Impact of stimulus spending on office leasing

• Office rent equilibrium zone study

WASHINGTON/BALTIMORE FLEX/INDUSTRIAL REPORTMarket Coverage: Washington Metro and Baltimore Metro; data is separated into flex/R&D and warehouse/distribution product types.

A comprehensive semi-annual report on flex/industrial market conditions, focusing on the following indicators:


• Regional, metro-level and substate area (Northern Virginia,

Suburban Maryland, and Suburban Baltimore) flex/

industrial market summaries

• Key market statistics for all major submarkets and

regional totals for:

• Inventory

• Net absorption

• Vacancy

• Construction


• Supply/demand analysis

• Rental rate and tenant improvement data

• Average lease terms and operating expenses

• Delivered, proposed, and planned SF

• Building sales

• Investment returns

• Cap rate trends

Additional indicators analyzed in the Year-End reports:


• Analysis of the regional economy

• Regional apartment market summary

• Key market statistics for all major submarkets and regional totals for:


• Vacancy

• Concessions

• Regional apartment building sales

FREE REPORTS

Delta Associates publishes free reports on the economy and real estate market, including:

• Washington, DC Metro Retail Outlook (quarterly)

• Washington Metro Area Housing Outlook (quarterly)

• Understanding the Economy (periodic)

• Washington TrendLines (annual)

• Houston TrendLines (annual)

Delta Associates also publishes occasional white papers on areas of interest . To view sample reports or to subscribe,

please visit www .DeltaAssociates .com .

PHILADELPHIA APARTMENT MARKET REPORT

An executive summary-style report on apartment market conditions, focusing on the following indicators:



DELTA A SSOCIATESLeading advisor and information provider

to the commercial real estate industry

Market Studies | Repositioning Analyses | Asset Valuations | Feasibility Studies Litigation Support | Market Data and Publications | Boardroom Presentations

500 MONTGOMERY STREET, SUITE 600 | ALEXANDRIA, VA 22314P: 703.836.5700 | WWW.DELTAASSOCIATES.COM |

DELTA A SSOCIATES

Is a firm of experienced professionals offering

consulting, valuation, and data services to the

commercial real estate industry for over 30 years. The

firm’s practice is organized in four related areas:

CONSULTING, RESE ARCH AND ADVISORY SERVICES

For commercial real estate projects, including

market studies (FHA/HUD compliant), market entry

strategies, asset performance enhancement studies,

pre-acquisition due diligence, and financial and fiscal

impact analyses.

LITIGATION SUPPORT

That includes dispute resolution, from forensic fact

finding to mediation and expert witness services.

Damages, material adverse change, and contract

disputes are specialties.

VALUATION

Of partial interests in commercial real estate assets.

SUBSCRIPTION DATA

For select metro regions for office, industrial, retail,

condominium, and apartment markets.

GREGORY H. LEISCH, CRE Chief Executive703.836.5700

[email protected]

DAVID WEISEL, CRE President

[email protected]

ALEXANDER (SANDY) PAUL, CRE Executive Vice President

[email protected]

CONTACT US


www.deltaassociates.com

mailto:greg.leisch%40deltaassociates.com?subject=

mailto:david.weisel%40deltaassociates.com?subject=

mailto:alexander.paul%40deltaassociates.com?subject=

Please join us the morning of Friday, October 3, 2014 to attend Delta Associates’ 18th Annual Washington/Baltimore Multifamily Market Overview & Awards for Excellence.

when.FRIDAY, OCTOBER 3, 2014

8:00 AM – Registration & Continental Breakfast8:30 AM – Delta Associates Market Presentation & Awards9:30 AM – Networking

where.THE MAYFLOWER HOTEL

1127 Connecticut Avenue, N.W.Washington, D.C. 20036

rsvp.RSVP BY SEPTEMBER 26, 2014

at www.multifamilydc.com

deltaassociatesWASHINGTON/BALTIMORE

eighteenth annual

Multifamily Market Overview & Awards for Excellence

www.multifamilydc.com

deltaassociatesPHILADELPHIA

third annual

Apartment Market Overview & Awards for Excellence

sponsors:

Delta Associates will present the latest trends and prospects in the Philadelphia economy and apartment market, followed by awards for excellence in the Philadelphia metropolitan area apartment industry.

when:TUESDAY, APRIL 21, 2015

8:00 AM – Registration & Continental Breakfast8:30 AM – Delta Associates Market Presentation & Awards9:30 AM – Networking Reception

where:FOUR SEASONS PHILADELPHIA

One Logan SquarePhiladelphia, PA 19103

rsvp:RSVP BY APRIL 10, 2015

For an invitation, email:

[email protected]

ICON 1616 APARTMENTS, PHILADELPHIA PA

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DELTA NEWS

MEDIA

DELTA INSIGHTS: EACH WEEK IN THE WASHINGTON BUSINESS JOURNAL

See Delta Associates’ weekly feature in the Washington Business Journal . In each release of Delta Insights, the WBJ highlights key

statistics and analysis from Delta that bring the local commercial real estate market into perspective .

PRESENTATIONS

HOUSTON TRENDLINES

The 14th annual Houston TrendLines® event will be held on November 13, 2014 at the River Oaks Country Club in Houston, TX .

TrendLines® is an invitation-only, annual presentation of market conditions with an outlook for investment and development

opportunities in the period ahead . Delta’s Executive Vice President, Sandy Paul, will present his assessment of the regional

economy and commercial real estate market conditions . To reserve an invitation to the 2014 event, hosted by Transwestern,

please contact Jennifer Glaser at 703-29.9.-6363 .

The Houston TrendLines® report and presentation will be available at Transwestern .com . The report will include data and analysis

on the office, industrial, multifamily, and retail markets as well as a detailed forecast on the national and regional economies .

PHILADELPHIA APARTMENT MARKET PRESENTATION AND AWARDS

Delta’s annual Philadelphia Apartment Market event was held on April 22, 2014 at the Four Seasons Hotel in Philadelphia,

PA . Delta’s CEO, Gregory Leisch, presented his Real Estate Market and Economic Overview . This event is co-sponsored by the

Bozzuto Group . To download the market presentation from our 2014 event, please visit our website . To register for the 2015 event,

to be held April 21, 2015, please contact Jennifer Glaser at 703-29.9.-6363 .

WASHINGTON TRENDLINES

The 17th annual Washington TrendLines® event was held on February 6, 2014 at the Ronald Reagan Building and International

Trade Center in Washington, DC . TrendLines® is an invitation-only, annual presentation of market conditions with an outlook

for investment and development opportunities in the period ahead . Delta’s CEO, Gregory Leisch, presented his assessment of

the market prior to the presentation of the annual TrendSetter awards . The event was co-sponsored by PNC Bank, Baker Tilly,

and Transwestern . For an invitation to the February 5, 2015 event, or to learn more about our TrendLines presentation and

report, please contact Jennifer Glaser or visit TrendLinesDC .com .

NEW YORK TRENDLINES

The inaugural New York TrendLines® event was held on December 10, 2013 at the Roosevelt Hotel in New York, NY . Delta’s

Executive Vice President, Sandy Paul, presented commercial real estate market conditions with an outlook for investment

and development opportunities in the period ahead . The New York TrendLines® event was co-sponsored by Transwestern . A

recording of the market presentation may be viewed at www .TrendLinesNYC .com .

WASHINGTON/BALTIMORE MULTIFAMILY PRESENTATION AND AWARDS

The 18.th annual Washington/Baltimore Multifamily Presentation and Awards will be held on October 3, 2014 at the Mayflower

Renaissance Hotel in Washington, DC . Delta’s CEO, Gregory Leisch, will present his Real Estate Market and Economic Overview

prior to the awards ceremony . The Multifamily Awards event is co-sponsored each year with Transwestern and Greystar . To

see the list of award winners, or to download the market overview presentation, please visit the Multifamily Awards page on

our website following the event .

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DELTA NEWS

WASHINGTON AREA APARTMENT WEBINARS

On July 15, 2014, Delta Associates hosted its eighth webinar covering the Washington apartment market, with information

from Delta Associates’ Mid-Year 2014 Class A Apartment Report . These webinars are co-sponsored by the ROSS Companies

and the Washington Business Journal . At each webinar, Delta Associates’ CEO, Gregory Leisch, provides a short regional economic

overview followed by a comprehensive review of the Washington apartment market . A brief question and answer period with

Greg Leisch and Scott Ross rounds out each webinar . The slide show from each webinar is available to attendees and to Delta’s

clients . For more information, please contact Rachelle Sarmiento at 703-29.9.-6360 .

RECENT SPEECHES AND PRESENTATIONS GIVEN BY DELTA EXECUTIVES

• 18.th Annual Washington/Baltimore Multifamily Market Presentation: 10 .3 .14

• Maryland Housing Outlook: 9. .10 .14

• Mid-Year 2014 Washington Area Apartment Market Webinar: 7 .15 .14

• Bisnow’s Baltimore Multifamily Conference: 6 .25 .14

• Bisnow’s 2nd Annual Future of Alexandria: 6 .6 .14

• Bisnow’s National Multifamily West Conference: 5 .22 .14

• Trends in Apartment Design: 5 .20 .14

• 2014 NMHC Research Forum: 4 .29. .14

• Philadelphia Apartment Market Overview: 4 .22 .14

UPCOMING SPEECHES AND PRESENTATIONS BY DELTA EXECUTIVES

• AIDC Real Estate Update: 11 .6 .14

• Bisnow’s National Multifamily East Conference: 11 .24 .14

• 18.th Annual Washington TrendLines Event: 2 .5 .15

• 3rd Annual Philadelphia Apartment Market Overview & Awards of Excellence 4 .21 .15

PUBLICATIONS

PHILADELPHIA CLASS A APARTMENT MARKET REPORT

The 2nd issue of Delta’s newest publication, Philadelphia Class A Apartment Market Report, was released in July 2014 . The next issue

will be released in October 2014 . To subscribe to this executive summary-style report, please contact Jennifer Glaser at 703-29.9.-6363 .

UNDERSTANDING THE ECONOMY

Delta publishes an electronic newsletter called Understanding the Economy on changes in the national economy and their

relevance to commercial real estate . This newsletter is available free of charge via e-mail, and the latest issue is released every

few months . Please subscribe to the report via our website .

WASHINGTON AREA RETAIL OUTLOOK

The Washington Area Retail Outlook is a quarterly report in which Delta provides a quantitative and qualitative assessment of the

Washington area retail market, with a focus on grocery-anchored shopping centers . Information is included on vacancy rates,

rents, investment sales, projects of interest, and key trends in the retail market . The report is co-sponsored by The Rappaport

Companies,and is available free of charge via e-mail . The latest issue of this report was released in July 2014 . The next issue of

the report will be released in October 2014 . Please subscribe to the report via our website .

WASHINGTON AREA HOUSING OUTLOOK

The Washington Area Housing Outlook is a quarterly report in which Delta provides an assessment of the region’s single-family

housing market, including data on pricing, sales volume, and days on market . The report is co-sponsored by George Mason

University’s Center for Real Estate Entrepreneurship, and is available free of charge via e-mail . The latest issue of this report was

released in July 2014 . The next issue of the report will be released in October 2014 . Please subscribe to the report via our website .

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18TH ANNUAL DELTA ASSOCIATES

WASHINGTON/BALTIMORE

MULTIFAMILY OVERVIEW & AWARDS FOR EXCELLENCE

CONGRATULATIONS TO THE APARTMENT AWARD WINNERS

BEST WASHINGTON/BALTIMORE HIGH-RISE APARTMENT COMMUNITYThe Apartments at CityCenter, Washington, DCHinesThe Bozzuto Group

Shalom Baranes Associates

BEST WASHINGTON MID-RISE APARTMENT COMMUNITYCornerstone at Monroe Street Market, Washington, DCThe Bozzuto GroupAbdo Development

KTGY Group

BEST BALTIMORE MID-RISE APARTMENT COMMUNITYGunther Apartments, Baltimore, MDObrecht Commercial Real Estate Kinsley Equities

Kettler Management Gordon and Greenberg

BEST WASHINGTON/BALTIMORE LOW-RISE APARTMENT COMMUNITYAvalon Arlington North, Arlington, VAAvalonBay Communities The Preston Partnership

BEST WASHINGTON/BALTIMORE GREEN APARTMENT COMMUNITYGallery Bethesda, Bethesda, MDThe Donohoe CompaniesVantage Management

WDG Architecture

BEST WASHINGTON/BALTIMORE NEIGHBORHOOD IMPACT APARTMENT COMMUNITYCity Market at O, Washington, DCRoadside Development, LLC Shalom Baranes Associates

BEST WASHINGTON/BALTIMORE ADAPTIVE REUSE APARTMENT COMMUNITYSky House, Washington, DCUrban Atlantic The JBG Companies

Wiencek & Associates

BEST WASHINGTON/BALTIMORE APARTMENT RENOVATION COMMUNITYCascade at Landmark, Alexandria, VAGreystarStudio 39.

BEST WASHINGTON/BALTIMORE INTERIOR DESIGN APARTMENT COMMUNITY - NEW CONSTRUCTIONPortland Flats at Monroe Street Market, Washington, DCThe Bozzuto Group Abdo Development

RD Jones & Associates Interior Architecture and Design

BEST WASHINGTON/BALTIMORE INTERIOR DESIGN APARTMENT COMMUNITY - RENOVATIONRiver House, Arlington, VAVornado / Charles E . Smith Hartman Design Group, Inc .

© Maxwell MacKenzie


18TH ANNUAL DELTA ASSOCIATES


MULTIFAMILY OVERVIEW & AWARDS FOR EXCELLENCE

CONGRATULATIONS TO THE CONDOMINIUM AWARD WINNERS

CONGRATULATIONS TO THE APARTMENT AWARD WINNERS (CONTINUED)

BEST LEASE-UP PACE FOR A DISTRICT OF COLUMBIA APARTMENT COMMUNITYCamden NoMa, Washington, DCCamden

BEST LEASE-UP PACE FOR A NORTHERN VIRGINIA APARTMENT COMMUNITYAvenir Place, Vienna, VAMill Creek Residential Trust

BEST LEASE-UP PACE FOR A SUBURBAN MARYLAND APARTMENT COMMUNITYCadence at Crown, Gaithersburg, MDThe Bozzuto Group

BEST LEASE-UP PACE FOR A BALTIMORE APARTMENT COMMUNITYParagon at Columbia Overlook, Baltimore, MDChesapeake Realty PartnersWPM Management

BEST WASHINGTON/BALTIMORE CONDOMINIUM COMMUNITYThe Residences at City Center, Washington, DCHines

The Mayhood Company

Shalom Baranes Associates

BEST WASHINGTON/BALTIMORE BOUTIQUE CONDOMINIUM COMMUNITYEdmonds School, Washington, DCCAS Riegler Ditto Residential

McWilliams | Ballard R2L Architects

BEST WASHINGTON/BALTIMORE ADAPTIVE REUSE CONDOMINIUM COMMUNITYThe Oronoco Waterfront Residences, Alexandria, VAEYA Shalom Baranes Associates

BEST WASHINGTON/BALTIMORE CONDOMINIUM CONVERSION COMMUNITYSomerset House, Washington, DCTenacity Group Condo Network @ Long and Foster

Forrest Perkins, IBL Enterprises, Capitol Design

BEST SALES PACE FOR A WASHINGTON/BALTIMORE CONDOMINIUM COMMUNITYThe Flats at Metro West, Fairfax, VAPulteGroup Minno & Wasko Architects

HIGHEST AVERAGE SALES PRICE PER SQUARE FOOT FOR A WASHINGTON/BALTIMORE CONDOMINIUM COMMUNITY

1055 High, Washington, DCEastBanc

1STATE OF THE ECONOMY &


CONDOMINIUM MARKET

DELTA ASSOCIATES | MID-ATLANTIC CLASS A APARTMENT MARKET REPORT | THIRD QUARTER 2014 | NOT FOR REDISTRIBUTION 3

According to Federal Reserve Chair Janet Yellen’s semiannual

Monetary Policy Report, the economy continues to see

improvement, but the recovery from the Great Recession is

still in progress . This is partially based on the unemployment

rate being above the Federal Open Market Committee’s

(FOMC) longer-run normal level estimate and the labor force

participation rate appearing weaker than expected .

Despite these current shortcomings, the national economy

is expected to continue experiencing moderate growth over

the next few years . It will be spurred by supportive monetary

policy, increased home prices and equity values, stronger

foreign growth, and a decreased drag from fiscal policy .

Until the FOMC sees a significant increase in stability in the

labor market, we can expect it to continue utilizing monetary

policies to support economic growth . For example, the FOMC

has continuously reaffirmed its stance on maintaining the

Federal Funds Rate at 0% to 0 .25% . The road to a complete

recovery has been slow, but there has been continued

progress despite bumps along the way .

Now, for a look at major U.S. economic indicators:

PAYROLL JOBS

The national economy added 2 .6 million new payroll jobs

(not seasonally adjusted) during the 12 months ending July

2014, with the private sector accounting for the majority

of net additions (the public sector added 9.8.,000 positions) .

Recent month-to-month gains (seasonally adjusted) have

been fairly strong and have shown improved consistency:

• April 2014: 304,000 (revised from 28.2,000)

• May 2014: 229.,000 (revised from 217,000)

• June 2014: 29.8.,000 (preliminary)

• July 2014: 209.,000 (preliminary)

After the Bureau of Labor Statistics (BLS) releases job growth

data it revises its records a number of times as more data

becomes available . These revisions tend to be pro-cyclical,

meaning that revisions tend to show stronger growth during

an expansion and less growth during recessions . Recently,

since we are in an expansion period, BLS has typically been

revising job growth upwards . Revisions to April and May of 2014

showed an additional 34,000 jobs compared to preliminary

data . It is also noteworthy that for the 12 months ending in

July 2014, the public sector added the most jobs since the 12

months ending June 2010, more than four years ago .

ECONOMY GAINING TRACTION; UNEMPLOYMENT RATE CONTINUES TO DECLINE;HIRES RATE INCREASING, SUGGESTING RENEWED STRENGTH IN LABOR MARKET

PAYROLL JOB GROWTH United States | Year-Over-Year

Source: Bureau of Labor Statistics, Delta Associates; September 2014.

-3,000

-2,000

-1,000

0

1,000

2,000

3,000

Mar.10

May10

Jul.10

Sep.10

Nov.10

Jan.11

Mar.11

May11

Jul.11

Sep.11

Nov.11

Jan.12

Mar.12

May12

Jul.12

Sep.12

Nov.12

Jan.13

Mar.13

May.13

Jul.13

Sep.13

Nov.13

Jan.14

Mar.14

May.14

Jul.14

Private Sector

Public Sector

TH

OU

SAN

DS

OF

NE

W P

AY

RO

LL J

OB

S

Note: Data are not seasonally adjusted.

THE NATIONAL

ECONOMYTHIRD QUARTER 2014

DELTA ASSOCIATES | MID-ATLANTIC CLASS A APARTMENT MARKET REPORT | THIRD QUARTER 2014 | NOT FOR REDISTRIBUTION4

SPONSORED BY BOZZUTO

The public sector has now added jobs for four consecutive

months after shedding jobs for the previous 44, and all of

this growth stems from state and local governments . The

Federal government continues to cut its workforce as it faces

budget shortfalls and rising liabilities . Of note, these cuts

are being achieved primarily through attrition rather than

layoffs . One benefit of Federal austerity and an enduring

economy is deficit reduction . The Congressional Budget

Office (CBO) projects that in 2015, the Federal budget deficit

will be 31% smaller than it was in 2013 . Of note, the U .S . will

still be running a deficit – we are not paying down debt, just

increasing it at a slower rate – but that is still substantial

progress in two years . In its April 2014 update, the CBO

reported that 2014 will be the fifth consecutive year that the

deficit’s share of the GDP has decreased . The CBO projects

the budget deficit in 2014 will be $49.2 billion, which is 2 .8.%

of GDP and is nearly a third less than the $68.0 billion deficit

in 2013 . However, after 2015, the deficit will stop shrinking

and will reach approximately $1 trillion from 2022 through

2024 . This will be caused by our aging population, rising

health care costs, an expansion of Federal subsidies for

health insurance, and growing interest payments on the

Federal debt .

As was the case in our mid-year report, the top four sectors

in job gains were Professional/Business Services, Leisure/

Hospitality, Education/Health Services, and Retail Trade –

adding a total of 1 .7 million new jobs and accounting for over

64% of net new employment . Retail employment continues

to grow at a healthy rate, though retail jobs have less of a

multiplier effect than many others due to their low wages .

Some sectors have experienced weaker recoveries than

others . Specifically, the manufacturing, financial services,

and information industries have lagged behind while some

other sectors have either matched their pre-recession

levels or surpassed them . Job losses were confined to the

Federal Government and Information sectors over the past

year, with a total net loss of 43,000 and 28.,000, respectively .

Of note, while those two sectors are still shedding jobs, the

rate of loss is slowing .

The Bureau of Labor Statistics projects that the economy

will add approximately 15 .3 million nonfarm payroll jobs

from 2012 through 2022, for an average annual growth rate

of 1 .1% . This compares to an average annual growth rate

of 0 .3% from 2002-2012, albeit that decade was marred by

the Great Recession . Education/Health Services is projected

to be the leader in job growth through 2022, adding 5 .7

PAYROLL JOB GROWTH United States | 12 Months Ending July 2014

-100,000 0 100,000 200,000 300,000 400,000 500,000 600,000 700,000

Federal Government

Information

Other Services

Financial Activities

Wholesale Trade

State and Local Government

Transportation/Utilities

Manufacturing

Construction/Mining

Retail Trade

Education/Health

Leisure/Hospitality

Professional/Business Services

J O B C H A N G E

Source: Bureau of Labor Statistics, Delta Associates; September 2014. Note: Data are not seasonally adjusted.

PROJECTED PAYROLL JOB GROWTH United States | December 2012 – December 2022

-1,000 0 1,000 2,000 3,000 4,000 5,000 6,000

Manufacturing

Federal Govt

Information


Wholesale Trade

Other Services

Financial Activities

State/Local Govt

Retail Trade

Leisure/Hospitality

Construction/Mining

Professional/Business

Education/Health

J O B C H A N G E ( T H O U S A N D S )


BASELINE BUDGET PROJECTIONS United States

Baseline budget projections as of April 2014. Source: Congressional Budget Office, Delta Associates; September 2014.

FED

ER

AL

DE

FIC

IT (

$ B

ILLI

ON

S)

0.0%

0.5%

1.0%

1.5%

2.0%

2.5%

3.0%

3.5%

4.0%

4.5%

-1,200

-1,000

-800

-600

-400

-200

0

2014 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024

Deficit % of GDP

DE

FIC

IT A

S A

% O

F R

EA

L G

DP

THE NATIONAL ECONOMY

5DELTA ASSOCIATES | MID-ATLANTIC CLASS A APARTMENT MARKET REPORT | THIRD QUARTER 2014 | NOT FOR REDISTRIBUTION


million jobs . Professional/Business Services follows, adding

3 .5 million positions . Manufacturing, Federal Government

and the Information sectors are expected to shed positions

over the 2012-2022 period . Of note, the Bureau of Labor

Statistics expects the disparity between goods-producing

jobs and service jobs as a percentage of total employment

to widen . Goods-producing jobs (Mining, Construction and

Manufacturing) will comprise 12 .1% of all jobs in 2022,

compared to 12 .6% in 2012 . Service jobs as a percentage of

all employment is forecasted to rise to 8.0 .9.% in 2022, from

79. .9.% in 2012 .

UNEMPLOYMENT

Overall, Initial unemployment claims have steadily

fallen since their peak in March of 2009. . As of mid-August

2014, initial claims stood at 29.5,750 based on a four-week

seasonally-adjusted moving average, falling 11 .7% from the

same period one year ago . This compares to the 15-year

average of 379.,8.00 . We expect unemployment claims to

continue decline gradually through the year in concert with

improving labor market conditions .

The unemployment rate (seasonally adjusted) declined to

6 .2% as of July 2014 from 7 .3% one year earlier . (The rate

declined to 6 .1% as of August in data released shortly before

this writing .) Earlier in the year, the unemployment rate

was declining in part because of workers dropping out of

the labor force, but more recently the rate has been driven

more by new jobs being created . In general, we anticipate

that the unemployment rate will gradually decline over

the next year as the economic expansion continues, hiring

accelerates, and uncertainty dissipates . In the short term

unemployment may tick up slightly as the current increase

in hiring might encourage even more people to rejoin the

labor force .

One indicator of the economy that has not seen significant

growth as of late is the national average hourly wage . In

July 2014 the hourly wage only increased slightly to $24 .45,

a 2 .0% increase since one year prior . By comparison, in 2007

the national hourly wage increased by at least 3 .0% during

each month compared with the same month one year prior .

The slow growth in wages is an indicator that the jobs being

created are in lower-paying industries . Even if people are

finding jobs, they are likely to be underemployed, meaning

job seekers are taking jobs that are below the education

levels they have earned .


INITIAL UNEMPLOYMENT CLAIMS United States | Four-Week Moving Average

250,000

300,000

350,000

400,000

450,000

500,000

550,000

600,000

650,000

700,000

Peak in Initial Unemployment Claims (Week of 3/28/09) = 659,250

15-Year Average = 379,800

INIT

IAL

UN

EM

PLO

YM

EN

T C

LAIM

S

Source: Bureau of Labor Statistics, Delta Associates; September 2014. Note: Data are seasonally adjusted.

(Week of 9/6/14) = 304,000

UNEMPLOYMENT RATE United States

0%

2%

4%

6%

8%

10%

12%

80 82 84 86 88 90 92 94 96 98 00 02 04 06 08 10 12 14*

Note: Through August 2014; seasonally adjusted; shaded bars represent recessions. Source: Bureau of Labor Statistics, Delta Associates; September 2014.

U.S

. U

NE

MP

LOY

ME

NT

RA

TE

0%

1%

2%

3%

4%

5%

2007* 2008 2009 2010 2011 2012 2013 2014

AVERAGE HOURLY EARNINGS 12-Month Percentage Growth | 2007- July 2014

* Data available starting March 2007 Source: Bureau of Labor Statistics, Delta Associates; September 2014.

Average 2007-2008 = 3.3%

Average 2009-2014 = 2.1%

12

-MO

NT

H P

ER

CE

NTA

GE

GR

OW

TH



Hires Rate: According to the Economic Policy Institute, a

method to gauge the relative strength of the current labor

market is through the hires rate, or the share of total

employment accounted for by new hires . In effect, the hires

rate captures (1) Net new hires, and (2) New hires that are

due to “churn .” The indicator is useful because top-end

payroll job growth hides a lot of shuffling in the economy,

or the natural “churn” in the job market as hires fill vacated

or lost positions . One feature of the current expansion

has been the reluctance of workers to separate from their

current job, which is usually an important way for many

workers to advance their careers and take advantage of

better and bolder opportunities . As shown below, the hires

rate fell dramatically during the Great Recession and has

shown only modest improvement thereafter . From 2009.

to year-end 2013, net new hires accounted for only about

3 .15% of payroll job growth on average . The adjacent graph

illustrates the fragility of the labor market, as employees

are clinging to less desirable positions and may be missing

opportunities for future career growth . The recent trend

has been positive, however, with the June 2014 rate (the

most recent data available) at 3 .5% .

Job applicants: As of June 2014, there were 2 .0 potential

applicants for every job opening . This is well below the July

2009. peak of 6 .7 applicants for every job and also less than

the 10-year average of 3 .2 . Also, this is the lowest ratio since

March 2008. and the 11th consecutive month the ratio has

been below 3 .0 . At the peak of the previous expansion cycle,

in March 2007, the ratio was 1 .4 potential applicants for

every job opening .

However, there are still many sectors that have significantly

more potential applicants than jobs available . This gap is

most apparent in the construction sector, where for every

job opening, there are 7 .0 potential applicants as of June

2014 . This gap is forcing many unemployed construction

workers to revamp their skill sets in order to be hirable

in other sectors . This need to learn new skills applies to

workers in all industries, which might help explain why so

many people have dropped out of the labor force since the

Great Recession . While the construction industry has the

highest unemployed workers to job openings ratio, other

industries also have a significant oversupply of candidates .

Importantly, the oversupply in construction is declining, with

the ratio down from 7 .5 just three months earlier and 10 .4 a

year earlier . In comparison, the Professional and Business

Services sector has just 1 .6 applicants per job opening .

HIRES RATE United States

2.0%

2.5%

3.0%

3.5%

4.0%

4.5%

5.0%

2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013

SH

AR

E O

F TO

TAL

EM

PLO

YM

EN

T T

HA

T I

S N

EW

H

IRE

S

Note: Shaded bar represents most recent recession. Source: Bureau of Labor Statistics, Delta Associates; September 2014.

Average 2009-2013 = 3.15%

Average 2003-2008 = 3.75%

JOB-SEEKERS RATIO United States

0

1

2

3

4

5

6

7

2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014

RA

TIO

OF

JOB

-SE

EK

ER

S T

O

JOB

OP

EN

ING

S

Note: Through June 2014. Source: Bureau of Labor Statistics, Economic Policy Institute, Delta Associates; September 2014.

10-Year Average = 3.1

NUMBER OF UNEMPLOYED VS. JOB OPENINGS 12-Month Average Ending June 2014

0 200 400 600 800 1,000 1,200 1,400 1,600

Wholesale and retail trade

Leisure and hospitality

Professional and business services

Education and health services

Manufacturing

Construction

Government

Financial activities

Other services

Transportation and utilities

Information

Mining

Number of Job Openings

Number of Unemployed

T H O U S A N D S O F J O B S

Note: Based on 12-month trailing average. Data are not seasonally adjusted. Source: Bureau of Labor Statistics, Delta Associates; September 2014.




GROSS DOMESTIC PRODUCT (GDP)

Real GDP contracted for the first time in three years by

a revised 2 .1% annualized rate during the 1st quarter of

2014, but bounced back and increased by an annualized

rate of 4 .2% (the government’s second estimate) during

the 2nd quarter of 2014 . The increase in real GDP growth

during the 2nd quarter stemmed from a rise in personal

consumption expenditures, private inventory investment,

exports, nonresidential fixed investment, state and local

government spending, and residential fixed investment .

According to the most recent report from Federal Reserve

Bank of Philadelphia, economists predict that the real GDP

growth will be 3 .0% in the 3rd quarter of 2014, 3 .1% in the

4th quarter, and 2 .1% in 2014 overall . Looking further ahead,

real GDP is predicted to average 3 .1% in 2015, 2 .9.% in 2016,

and 2 .8.% in 2017 .

Nevertheless, global economic growth could face near-term

constraints from a combination of current account deficits/

weak currencies in emerging economies and questions

about the rate of future growth in China . And, of course,

there are always worries about geo-political events .

The national economic expansion remains on track, even if

its performance is slow and uneven from month to month .

This is due in part to consumer’s improved outlook due to:

• Higher-income Americans feeling wealthier due to a

17 .7% gain in the S&P 500 in the past year;

• Middle-income Americans feeling better due to a 6 .2%

gain in housing prices over the past 12 months (per the

S&P/Case-Shiller national index), though the rate of

increase is decelerating; and

• Lower- and middle-income earners benefiting from low

inflation .

In addition, as households continue to fuel growth in the

economy through consumption expenditures, household

wealth accumulation (e .g ., residential investment)

continues to be on the mend . Non-residential investment

as a percentage of GDP is returning to pre-recession levels,

as inventory stock has been building up and commercial

construction is ramping up . Residential investment, which

includes new housing starts and upgrades to existing

residential buildings, has historically been a significant

contributor to GDP growth following the last four

recessions, but growth in residential investment following


FIXED INVESTMENT CONTRIBUTIONS TO GROSS DOMESTIC PRODUCT (GDP)

Source: Federal Reserve Economic Database (FRED), Delta Associates; September 2014.

0%

2%

4%

6%

8%

10%

12%

14%

16%

2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014

PE

RC

EN

TAG

E O

F R

EA

L G

DP

RI %GDPNRI % GDP

Residential Private Investment Nonresidential Private Investment

*Through Q2 2014. Note: data are seasonally adjusted at annual rates.

GDP PERCENT CHANGE United States

Source: Bureau of Economic Analysis, Delta Associates; September 2014. Note: Annualized.

-10%

-8%

-6%

-4%

-2%

0%

2%

4%

6%

Q107

Q207

Q307

Q407

Q108

Q208

Q308

Q408

Q109

Q209

Q309

Q409

Q110

Q210

Q310

Q410

Q111

Q211

Q311

Q411

Q112

Q212

Q312

Q412

Q113

Q213

Q313

Q413

Q114

Q214

AN

NU

AL

GD

P C

HA

NG

E I

N 2

00

9

CO

NST

AN

T D

OLL

AR

S

20-Year Average = 2.5%



the latest recession has been sub-par . We expect residential

fixed investment as a percentage of GDP will increase

during the coming year, as home values continue to rise

(though perhaps more slowly) and home construction picks

up . Much like our expectation that personal consumption

expenditures are poised to expand as household equity

continues to mend, a rise in residential fixed investment

should translate into accelerating GDP growth in the

coming year or two .

CORPORATE PROFITS

U .S . corporate profits totaled $1 .9.4 trillion during the 1st

quarter of 2014 on an annualized basis, a 4 .8.% decrease

over the 1st quarter of 2013 . Despite this decline, overall

corporate profits have been trending upwards since 2008. .

Companies have the resources to hire but remain wary

about future demand for products and services . We expect

that record corporate profits will gradually decline over the

next few years as uncertainty fades, businesses expand

their capital expenditures and M&A activity ramps up . We

have already seen a number of large acquisitions in 2014

including Facebook’s $19. billion purchase of WhatsApp,

Google’s $3 .2 billion deal for Nest Labs, and Apple’s $3

billion acquisition of Beats Electronics .

HOUSING MARKET

Home prices in the 20 major metro areas increased 8. .1%

during the 12 months ending June 2014, the most recent

data available, according to S&P/Case-Shiller . The housing

market is slowing nationally on a year-over-year basis,

and is now more in line with the pace of overall economic

growth . Inventory, which had been very low in some metro

areas, is gradually normalizing, easing pricing pressure .

The number of U .S . home sales rose to 5 .15 million (on an

annualized basis) in July 2014 from 5 .03 million one month

earlier . The 5 .15 million-unit pace is 4 .3% below the 5 .38.

million-unit pace from the same period a year ago . The

average existing home sales price was $268.,700 in July

2014 according to the National Association of Realtors,

surpassing the pre-recession average .

FEDERAL INTERVENTION AND INFLATION

Janet Yellen, the Federal Reserve’s new Chair, stated in

her semiannual Monetary Policy Report to Congress that

ANNUAL CHANGE IN EXISTING HOME SALE PRICES United States

-25%

-20%

-15%

-10%

-5%

0%

5%

10%

15%

20%

PE

RC

EN

T C

HA

NG

E F

OR

ME

DIA

N P

RIC

E

OF

SIN

GLE

-FA

MIL

Y H

OM

ES

Source: S&P/Case-Shiller, Delta Associates; September 2014.

2008 2009 2010 2011 2012

Note: Data reflect 20-city composite index.

2013 2014

Source: National Association of Realtors, Delta Associates; September 2014.

$200,000

$210,000

$220,000

$230,000

$240,000

$250,000

$260,000

$270,000

$280,000

3,000

3,500

4,000

4,500

5,000

5,500

6,000

6,500

2006 2007 2008 2009 2010 2011 2012 2013 2014*

Number of Existing Home Sales**

Average Existing Home Sales Price

NU

MB

ER

OF

SALE

S –

T

HO

USA

ND

S O

F U

NIT

S

U .S . EXISTING HOME SALES VS. SALES PRICE

AV

ER

AG

E S

ALE

S P

RIC

E

*Data as of July 2014. ** Seasonally adjusted annual sales rate.


$0

$20

$40

$60

$80

$100

$120

$0.0

$0.5

$1.0

$1.5

$2.0

$2.5

2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014*

Corporate Profits

S&P 500 12-Month EPS

Note: Seasonally adjusted at annual rates. *EPS through March 2014.

U.S. CORPORATE PRE -TAX PROFITS

Source: Bureau of Economic Analysis, Multpl.com, Delta Associates; September 2014.

CO

RP

OR

AT

E P

RO

FIT

S I

N T

RIL

LIO

NS

S&

P 5

00

12

-MO

NT

H E

PS


SPONSORED BY BOZZUTOTHE NATIONAL ECONOMY

the economy continues to improve, but has still not

completely recovered . Accordingly, the Fed plans to keep

short-term rates at their current range of 0% to 0 .25% until

labor market conditions, indicators of inflation pressures

and inflation expectations, and readings on financial

developments improve .

In late July the Fed cut its bond-buying activities (QE3) by

another $10 billion, bringing down total long-term bond

purchases to $25 billion per month . Also, minutes from the

Federal Open Market Committee’s June meeting reveal the

tapering process will end in October .

For commercial real estate investors, we perceive the

tapering decision as a net positive . The Fed’s announcement

should provide more clarity as to the central bank’s

monetary guidance going forward . The move also sheds

light on the improving prospects of the U .S . economy, and it

should remove a portion of the all-too-familiar uncertainty

that has plagued business decision-making and capital

investment for some time .

How will markets react going forward? Time will tell, but we

expect some short-term volatility, especially in emerging

economies that benefited from record-low borrowing

rates . The stock market has seen its upward momentum

continue through the summer as the Fed has tapered its

bond purchases .

Regarding inflation, prices increased 2 .0% during the

12 months ending July 2014 . The personal consumption

expenditure price index (PCEPI), which takes into account

changes in consumption habits as people substitute away

from some goods and services towards others, rose 1 .6%

during the 12 months ending July 2014 . The slight increase

in prices stems partially from the rise in costs for food,

especially meats, poultry, fish, and eggs, and the rise in

energy costs . Meat prices are rising due to droughts in the

central United States, which has significantly cut down hay

production, leaving ranchers with less food for cattle . As

a result ranchers are reducing cattle production, cutting

supply during barbeque season, which is when demand for

meat is at its highest . We expect inflation to be contained

in the near-term due to modest wage growth, coupled with

the fact that price pressure tends to lag economic growth

by a year or more . Given this, coupled with appropriate

monetary measures, inflation looks soft and should hover

near 2 .0% during the balance of 2014 .

SELECTED U.S. GOVERNMENT INTEREST RATES

0

1

2

3

4

5

6

7

2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014

INT

ER

EST

RA

TE

S (

%)

Federal Funds Rate

10-Year Treasury

30-Year Treasury

Source: Federal Reserve Economic Data (FRED), Delta Associates; September 2014. Note: Federal Funds Rate unchanged since December 16, 2008. 30-Year Treasury not issued between Q2 2002-2005.

U.S. INFLATION AND PERSONAL CONSUMPTION EXPENDITURE INDEX

Source: Federal Reserve Economic Database (FRED), Delta Associates; September 2014.

-6%

-4%

-2%

0%

2%

4%

6%

8%

10%

12%

14%

16%

80 82 84 86 88 90 92 94 96 98 00 02 04 06 08 10 12 14*

PE

RC

EN

TAG

E C

HA

NG

E

Series1

Series2

CPI-U PCEPI

Note: *CPI-U through July 2014 and PCEPI through July 2014. 12-month seasonally-adjusted percentage change.



ECONOMIC OUTLOOK

During the 3rd quarter of 2014, the economy experienced

growth at the slow and steady pace we have become

accustomed to during the recovery from the Great

Recession . The most recent GDP readings, from the 2nd

quarter of the year, were strong, but most economists

believe the overall set of current and leading indicators

suggests that growth will settle in at a slower rate for the

balance of 2014 . Looking forward, we expect to see payroll

employment growth continue, the unemployment rate to

decline further, and household net worth to increase from

the rise in home and stock market values . The economy

successfully bounced back from a slow 1st quarter and we

expect it do so again if faced with similar challenges in

the near future . On balance, we look for this recovery to

continue on its slow but steady course through 2018. or so,

barring a catastrophic event .

Specifically, we believe the economic outlook is as follows:

• Real GDP growth: 2 .5% in 2014 .

• Payroll jobs: 2 .6 million added in 2014, slightly outpacing

the 2013 total .

• Housing: Price appreciation around 6% to 8.% in 2014, off

last year’s performance .

• Unemployment rate: Hovering around 6 .0% to 6 .2% for

the balance of 2014 .

• Federal Funds Rate: 0% to 0 .25% through year-end 2015 .

• Long-term interest rates: Edging higher during the rest

of 2014 .

• Inflation: Around 2 .0% to 2 .5% for 2014 as consumer

demand strengthens .

The outlook for the intermediate-term is bright as well .

According to the Bureau of Labor statistics, the prime

working age population has been growing since 2012, and will

continue to do so until 2020 . The rise in the prime working

age population is an important shift in demographics that

should help boost economic activity in the coming years .

This data also suggests that we would have likely faced

slower economic activity, to some degree, during the past

decade no matter what – the financial crisis compounded



40,000

50,000

60,000

70,000

80,000

90,000

100,000

110,000

120,000

130,000

1948 1954 1960 1966 1972 1978 1984 1990 1996 2002 2008 2014*

PO

PU

LAT

ION

(0

00

S)

population

*As of July 2014.

PRIME AGE POPULATION, 25 TO 54 YEARS OLD United States

Looking forward, we expect to see payroll employment growth continue, the unemployment rate to decline further, and household net worth to increase.


SPONSORED BY BOZZUTOTHE NATIONAL ECONOMY

*Seasonally-adjusted change for 12 months ending in July 2014; others are comparisons of annual averages. Note that BLS has rebenchmarked figures since their initial publication; the figures presented above are the most recent estimates.

U.S. PAYROLL JOB GROWTH

YEAR JOB CHANGE % CHANGE

1 .9.%

1 .7%

1 .7%

1 .2%

-0 .7%

-4 .3%

-0 .6%

1 .1%

1 .8.%

1 .7%

1 .1%

-0 .2%

-1 .1%

2,542,000

2,264,000

2,250,000

1,576,000

-9.48.,000

-5,9.49.,000

-765,000

1,532,000

2,407,000

2,265,000

1,417,000

-313,000

-1,451,000

2014*

2013

2012

2011

2010

2009.

2008.

2007

2006

2005

2004

2003

2002

METRO AREA # % METRO AREA # %New York 155,400 1.8% Baltimore 34,600 2.6%LA Basin Philadelphia 33,900 1.2% Los Angeles/Long Beach/Glendale 69,200 1.7% Orlando 33,200 3.2% Orange County (Santa Ana/Anaheim/Irvine) 22,500 1.6% Austin 32,600 3.8% Riverside/San Bernardino/Ontario 36,200 3.0% Portland (OR) 31,700 3.1% Subtotal LA Basin 127,900 1.9% Raleigh-Durham 31,000 3.8%Dallas/Ft. Worth 120,800 3.9% St. Louis 27,100 2.1%Houston 112,200 4.0% Charlotte 25,800 3.0%San Francisco Bay Area Las Vegas 25,700 3.0% San Jose/Sunnyvale/Santa Clara 27,100 2.8% Indianapolis 22,600 2.4% San Francisco/San Mateo/Redwood City 35,400 3.3% Nashville 21,400 2.7% Oakland/Fremont/Hayward 23,700 2.3% Tampa-St. Pete 21,000 1.8% Subtotal Bay Area 86,200 2.8% San Antonio 20,800 2.3%South Florida Sacramento 20,800 2.4% West Palm Beach/Boca Raton 17,700 3.3% Cincinnati 19,900 1.9% Fort Lauderdale 22,800 3.1% Washington, DC 19,800 0.6% Miami/Miami Beach/Kendall 36,400 3.5% Oklahoma City 19,000 3.2% Subtotal South Florida 76,900 3.3% Salt Lake City 19,000 2.9%Atlanta 63,900 2.7% Jacksonville 17,100 2.8%Boston (Metropolitan NECTA) 57,200 2.2% Detroit (Detroit/Warren/Livonia) 16,800 0.9%Seattle 49,700 2.8% Cleveland 16,000 1.6%Denver-Boulder 48,100 3.3% New Orleans 15,100 2.8%Phoenix 47,400 2.7% Kansas City 13,700 1.4%Chicago 47,200 1.1% Pittsburgh 12,400 1.1%Minneapolis-St. Paul 46,300 2.6% Memphis 8,900 1.5%San Diego 37,200 2.8% Columbus (OH) 6,600 0.7%

Note: Data are not seasonally adjusted.Source: Bureau of Labor Statistics, Delta Associates; September 2014.

12-MONTH PAYROLL EMPLOYMENT CHANGE THROUGH JULY 2014

JOB CHANGE JOB CHANGE

the problem of weaker workforce demographics, but some

economic retrenchment was likely in any case .

Additionally, the largest five-year age cohort is now the 20

to 24-year-old age group based on data from the Census

Bureau . As workers within this cohort grow older over the

next few years, their wages will rise and the amount they

spend will increase as result, further boosting the economy .

Also, as this age cohort shifts to the 25 to 29.-year-old

group, they will be more likely to start buying their own

homes as opposed to renting . Based on the aforementioned

conditions, we expect the national economy to see

continued growth in both the near and intermediate terms .

NATIONAL PAYROLL JOB GROWTH SUMMARY

The U .S . economy gained 2 .5 million payroll jobs over the 12

months ending July 2014 (seasonally adjusted), representing

an increase of 1 .9.% . This compares to the 25-year annual

average of 1 .2 million jobs at a 1 .1% average growth rate .


The Washington metro area faced a number of challenges in

early 2014, including Federal budget cuts and harsh winter

weather that hindered businesses throughout the region .

Despite these challenges, payroll job change still remained

positive, albeit below historical averages . In more recent

months, job growth has been stronger on an annual basis

and we expect it to continue gaining strength throughout

the balance of 2014 . During the 12 months ending July 2014,

payroll employment increased by 19.,8.00, or 0 .6% . However, the

12-month employment gain is below the metro area’s 20-year

annual average of 42,600 and compares to prior expansion

cycles of 60,000 to 100,000 in job gains . As a result, this

expansion, while strengthening, feels anemic by comparison .

As the Washington metro area adjusts to these conditions,

we expect the private sector to increasingly pick up the

slack . Growth in the private sector combined with pent-up

demand for goods and services will help to spur job growth

for the balance of 2014 and will likely continue through

2018. . Job growth will keep the region’s unemployment rate

low; as of July 2014 the unemployment rate was at 5 .4%, one

of the lowest rates among major metro areas .

Specifically, more job growth will be needed from the

Professional/Business Services sector, as it produces higher

paying jobs . Currently, the job growth is highest in the Retail

Trade sector, which produces lower-wage jobs . Plans in Virginia,

such as Governor McAuliffe’s recently announced “New Virginia

Economy Workforce Initiative,” are a step in the right direction .

The initiative will focus on training people for middle-skill jobs

that require some training past high school, but do not need a

four-year degree . Governor McAuliffe has set a goal for 50,000

Virginians to graduate the program by the end of 2017 .

P A Y R O L L E M P L O Y M E N T

ECONOMIC HIGHLIGHTSW A S H I N G T O N M E T R O A R E A

3.1m i l l i o n

at July

2014

J O B C H A N G E

19.8thousand

12 months ending July

2014

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

5.4%I N F L AT I O N

1.7%12 months ending July

2014

H O U S I N G P R I C E S

5.3%12 months

ending June

2014Source: Bureau of Labor Statistics, S&P/Case-Shiller; September 2014.

at July 2014

down from

5.7% one year ago

THE WASHINGTON

AREA ECONOMY

THIRD QUARTER 2014

JOB GROWTH IMPROVING; CONTRACTORS SLOWLY GAINING MORE CONFIDENCE; UNEMPLOYMENT RATE REMAINS LOW



PAYROLL JOBS

The Washington metro ranks seventh in population among

the nation’s metro areas, with 5 .9. million residents . With

3 .1 million payroll jobs, the Washington metro area ranks

as the fifth-largest job market, behind New York, LA Basin,

Chicago, and Dallas/Ft . Worth . The Washington metro area

economy added 19.,8.00 new payroll positions during the

12 months ending July 2014 . Growth is below the 20-year

annual average of 42,600 and less than in past recovery

cycles, which averaged 60,000 to 100,000 .

As noted previously, a majority of job growth since the

end of the recession has come from lower-wage jobs . Jobs

filled that were mid-wage and higher-wage were outpaced

by lower-wage jobs by about 40,000 and 20,000 jobs,

respectively . As jobs in the Manufacturing, Information, and

Federal Government sectors continue to be shed, creating

higher-wage jobs becomes an ever-increasing priority .

The Washington metro area added 19.,8.00 new jobs during

the past 12 months . Other metro areas with larger private

sectors continue to outpace it in job gains . New York, the

LA Basin, DFW, Houston, and SF Bay are the leaders in

job growth, spurred by growth in Professional/Business

Services, Trade/Transportation/Utilities, and Energy .

PAYROLL JOBS BY SECTOR

The top four sectors for job growth in the Washington

metro area are Retail Trade, Leisure/Hospitality, Education/

Health Services, and State/Local Government – with a total

of 24,300 new jobs added to the economy in these four

sectors alone . These industries are still seeing job growth,

but they are being partially offset by other industries that

are experiencing losses . Notably, the Federal Government

sector lost 8.,100 jobs while the Manufacturing and

Information sectors lost 2,600 and 2,500 jobs, respectively,

during the 12 months ending July 2014 . Federal agencies

continue to tighten spending due to Federal austerity

measures, notwithstanding the partial rollback of

sequestration . The majority of the region’s Federal job

cuts occurred in the District of Columbia . The Federal

government is not laying off workers; rather, a hiring

freeze has prevented hiring for many positions vacated

due to retirement or workers leaving for other positions

outside the Federal government .

(60) (40) (20) 0 20 40 60 80

Lower Wage

Mid-Wage

Higher-Wage

Thousands

2008-2009

2010-2013 H I G H E R - W A G E

M I D - W A G E

L O W E R - W A G E

JOB CHANGE IN THOUSANDS

PAYROLL JOB CHANGE BY WAGE Washington Metro Area

Source: Dr. Stephen Fuller, Delta Associates; September 2014.

19.8

0

20

40

60

80

100

120

140

160

180

NY LABasin

DFW Hou SF Bay SouthFL

Atl Bos Denver Phx Chi Was

PAYROLL JOB GROWTH Selected Large Metro Areas | 12 Months Ending July 2014

TH

OU

SAN

DS

OF

NE

W

PAY

RO

LL J

OB

S


-60

-40

-20

0

20

40

60

80

100

120

140

93 94 95 96 97 98 99 00 01 02 03 04 05 06 07 08 09 10 11 12 13 14*

20-Year Annual Average = 42,600/Year

*12 months ending in July 2014.

TH

OU

SAN

DS

OF

NE

W P

AY

RO

LL

JOB

S (

AN

NU

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AV

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AG

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PAYROLL JOB GROWTH Washington Metro Area

THE WASHINGTON AREA ECONOMY



UNEMPLOYMENT RATE

The Washington area unemployment rate was 5 .4% at July

2014, down 30 basis points from 5 .7% one year ago . This

compares to the national (seasonally adjusted) rate of

6 .2% in July 2014, which is down 110 basis points from one

year earlier . The Washington metro area has the second-

lowest unemployment rate among the nation’s largest

metro areas, behind Denver . The Washington metro area’s

unemployment rate peaked in January 2010, at 7 .1%,

and has since declined, albeit unevenly . We expect the

Washington metro area’s unemployment rate to hold in the

low-5% range during the balance of 2014 .

REGIONAL CONSUMER PRICE INDEX

Overall inflation in the Washington/Baltimore region was

1 .7% during the 12 months ending July 2014, compared to

the national inflation rate of 2 .0% . Inflation for all types

of items remained relatively in check with the regional

inflation rate . Medical expenses only rose 2 .3% in the

Washington/Baltimore region during the past 12 months,

the lowest rise in a 12 month period since November 2009. .

Also, housing fuel and utilities have decreased 1 .4% during

the same period after rising 7 .2% during the 12 months

ending March 2014 and 4 .0% during the 12 months ending

PAYROLL JOB GROWTH Washington Metro Area | 12 Months Ending July 2014

-12,000 -8,000 -4,000 0 4,000 8,000 12,000 16,000

Federal Government

Manufacturing

Information

Wholesale Trade

Professional/Business Services

Construction/Mining


Other Services

Financial Services

State and Local Government

Education/Health

Leisure/Hospitality

Retail Trade

J O B C H A N G E

+33,000

-13,200


0%

2%

4%

6%

8%

10%

12%

Den Was Bos DFW Hou SF Bay Phx S Fla Chi NY Atl LABasin

July 2013 July 2014

UN

EM

PLO

YM

EN

T R

AT

E

National Rate*

7.3% 6.2%

-170 -30 -120 -260 -130 -90 -130 -100 -100 -120 -30 -140 Basis Point Change

UNEMPLOYMENT RATE Large Metro Areas | July 2013 vs. July 2014

Source: Bureau of Labor Statistics, Delta Associates; September 2014. *Seasonally adjusted.


Note: In thousands of payroll jobs. Data are not seasonally adjusted.Source: BLS, Delta Associates; September 2014.

TRENDS IN EMPLOYMENT BY MAJOR SECTORWashington Metro Area

JULY 2014

Retail Trade

Leisure/Hospitality

Education/Health

State and Local Govt .

Financial Services

Other Services


Construction/Mining

Professional/Bus . Svs .

Wholesale Trade

Information

Manufacturing

Federal Government

Total

273 .3

311 .7

39.1 .8.

306 .5

156 .1

19.3 .5

61 .5

150 .7

712 .6

63 .2

74 .2

46 .0

366 .7

3,107.8

12-MONTHCHANGE

7 .7

7 .2

5 .4

4 .0

3 .8.

2 .5

1 .0

0 .7

0 .5

0 .2

-2 .5

-2 .6

-8. .1

19.8

20-YEAR ANNUAL AVERAGE

1 .9.

5 .1

8. .6

3 .8.

0 .0

3 .7

0 .1

1 .0

16 .8.

2 .0

-0 .2

-0 .9.

0 .7

42.6


AN

NU

AL

PR

ICE

IN

DE

X C

HA

NG

E

CONSUMER PRICE INDEX (CPI ) Washington/Baltimore Region

-2%

-1%

0%

1%

2%

3%

4%

5%

10-Year Annual Average = 2.7%

Note: Data is 12 months ending in each period, through July 2014.



May 2014 . For the balance of 2014, we expect inflation

to be contained locally, as slowly progressing economic

conditions keep prices in check, with growth of 1 .5% to 2 .5% .

As long as appropriate monetary measures are in place at

the Federal level, inflation should remain controlled .

HOUSING PRICES

House prices increased 5 .3% in the Washington metro area

during the 12 months ending June 2014, according to the

S&P/Case-Shiller Home Price Index . This compares to a rise

of 8. .1% in the 20 MSA Composite Index .

Using a different methodology, the Federal Housing

Finance Administration (FHFA) measured price growth in

the Washington region at 5 .2% for the 12 months ending

in June 2014 . Both measures reflect decent year-over-year

gains thanks to a resilient private sector, though price

increases have been slower in recent months across the

nation . As demand continues to grow we expect prices to

continue rising . However, housing has become increasingly

unaffordable due to the slower acceleration of wage growth .

REGION’S CORE INDUSTRIES

The Gross Regional Product (GRP) for Washington is expected

to grow to $475 .5 billion in 2014 – a 3 .8.% increase from

$458. .1 billion in 2013 . The Federal government is the largest

component of the Washington area economy, as its spending

touches every job sector . However, this share of spending

is shrinking . During 2013, Federal government spending

accounted for 35% of GRP . By 2018., we expect this share

to shrink to 29.%, as the Federal government continues to

control spending and the private sector picks up the slack .

The most important element of Federal spending in the

metro area economy is procurement – the government’s

purchase of goods and services from the private sector .

Procurement spending declined 5 .9.% during 2013 compared

to a decline of 5 .0% in 2012 . While government contractors

have right-sized over the past three years and found ways

to increase their business with private sector clients,

Federal procurement spending is continuing to decline,

which has a negative impact on this region’s overall

economic performance . In consultation with Dr . Stephen

Fuller of the Center for Regional Analysis, we expect Federal

procurement spending in the Washington metro area to

decline at least 3 .0% in 2014 on a current-dollar basis .

Source: S&P/Case-Shiller, Delta Associates; September 2014.

PE

RC

EN

T C

HA

NG

E

PERCENT CHANGE IN HOUSE PRICES Washington MSA vs. U.S. 20 MSA Composite

Note: Seasonally adjusted.

-20%

-15%

-10%

-5%

0%

5%

10%

15%

20%

25%

2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014*

Washington MSA

U.S. 20 MSA Composite

*12 months ending June 2014.


35%

15%

5% 5% 5%

3%

34% Federal SpendingTechnologyBuilding IndustryInt'l BusinessHealth/EducationHospitalityOther


SHARE OF GRP Washington Metro Area | 2013

$458 Billion

Percentages may not add to 100% due to rounding.



The Washington region has experienced slow-growth in the

first half of 2014, as expected, due to the lingering effects of

mandatory Federal budget cuts, but harsh winter weather

further stymied the economy earlier this year . We expect

to see stronger economic growth in the Washington metro

area during the balance of 2014 and into 2015 .

Contractors are continuing to adjust to the new economic

environment . With the budget deal and debt limit suspension

in place, contractors have more confidence to commit

towards larger future projects instead of being limited

to smaller short-term deals . This increased certainty has

allowed contractors to adjust their personnel accordingly

and we should see fewer job cuts moving forward . For

example, 500 jobs were added in the Professional/Business

Services sector over the past 12 months, which is not a

significant gain, but is a positive sign compared to the net

loss of jobs in the sector earlier in the year .

Also, the retail and hospitality sectors still have room for

growth . Although these sectors consist of lower-wage jobs,

we expect that they will continue to add workers, which

benefits the overall regional economy .

Even with the headwinds generated by job losses in the

Federal government and contracting sectors, the region’s

overall job growth has been fairly healthy due to the

outperformance of other sectors . These other sectors

generated 62,9.00 new payroll jobs during the 12 months

ending in July 2014, which is more on par with the historical

average of the Washington metro area .

WASHINGTON AREA ECONOMIC OUTLOOK

We expect job growth in the metro area to remain tempered

for an expansion cycle – in the range of 25,000 to 60,000

jobs per annum . This is sufficient to support a healthy

commercial real estate industry, but below the levels

experienced in most recent expansion cycles .


TH

OU

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OF

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LL

JOB

S (

AN

NU

AL

AV

ER

AG

E)

Source: Bureau of Labor Statistics, Dr. Stephen Fuller, Delta Associates; September 2014.

PAYROLL JOB GROWTH Washington Metro Area

-60

-40

-20

0

20

40

60

80

100

120

140

2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018

District Sub. MD No. Virginia

20-Year Annual Average = 42,600/Year 5-Year Projected Average = 43,800/Year

*Preliminary

A N N UA L C H A N G E I N F E D E R A L P R O C U R E M E N T S P E N D I N G Washington Metro Area (Current Dollars)


-10%

-5%

0%

5%

10%

15%

20%

25%

2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013* 2014**

**Projected


% C

HA

NG

E I

N S

PE

ND

ING

(8,100)

(35,000)

62,900

-40,000

-20,000

0

20,000

40,000

60,000

80,000

Federal Government Procurement/ Contractors* All Other

Source: BLS, Delta Associates, September 2014.

JOB GROWTH Washington Metro Area | 12 Months Ending July 2014

*Estimate.

JO

B G

RO

WT

H

Even with the headwinds generated by job losses in the Federal government and contracting sectors, the region’s overall job growth has been fairly healthy due to the outperformance of other sectors.



We expect the Washington metro area economy to build on

some of the momentum started during the 3rd quarter of the

year . Consumer confidence is at its highest level in nearly

seven years according to The Conference Board’s Consumer

Confidence Index and 60% of CEOs are optimistic about the

national economy’s outlook over the next year according

to PwC’s most recent Trendsetter Barometer report . Also,

52% of companies have expansion initiatives planned over

the next year and 63% plan on hiring more workers during

the period of time . We expect these national trends to have

a local impact and boost the regional economy during the

balance of 2014 and into 2015 .

During 2015 and 2016 we expect healthy growth, though at

a slower rate than seen in recent expansion cycles . As the

Federal government will continue to face austerity measures

during this period – albeit reduced from 2013 levels – we

expect the source of growth to continue its shift to the

private sector . Overall, employment growth will be healthy

but average wages lower on an inflation-adjusted basis than

what this region has experienced in the past . International

business activities will benefit Washington and support

payroll job growth in the National Capital Region .

We estimate that an annual average of 43,8.00 payroll jobs will

be added to the Washington metro area economy during the

five-year period from 2014 to 2018. . Private sector firms will be

the cornerstone of employment growth in the period ahead .


We expect job growth in the metro area to remain tempered for an expansion cycle – in the range of 25,000 to 60,000 jobs per annum. This is sufficient to support a healthy commercial real estate industry, but below the levels experienced in most recent expansion cycles.



The Baltimore metro area’s economy experienced

continued economic growth during the 3rd quarter of

2014 and remains a leader among comparably-sized metro

areas . Overall, we expect conditions to continue to improve

for the remainder of 2014 and into 2015 .

The Baltimore metro area economy has continued to record

strong job growth . Payroll employment increased 34,600

(a 2 .6% increase) during the 12 months ending July 2014,

which is above the long-term annual average of 11,8.00 .

The Professional/Business Services sector continued to

power the local economy during the past 12 months,

however, the Leisure/Hospitality, Construction, and State/

Local Government sectors all played important roles as

well . Compared to past recovery cycles, all four sectors

have achieved healthy gains in jobs since the trough of the

most recent recession . Hindering more robust job growth

is the 1,600 payroll positions lost in the Manufacturing

sector and the 1,100 payroll positions lost in the Federal

Government sector during the 12 months ending July 2014 .

The unemployment rate is at 6 .9.% as of July 2014, down

from 7 .2% one year earlier .

The Baltimore economy should continue to outperform other

comparably-sized metro areas . With a solid core economic

base, boosted by a growing cyber-security industry, the

Baltimore economy is poised for long-term growth .

PAYROLL JOBS

With 1 .4 million payroll jobs, the Baltimore area ranks

as the largest job base among comparable metro areas,

slightly larger than St . Louis . The Baltimore metro area

BALTIMORE METRO ECONOMY GROWING AS HIRING ACCELERATES

P A Y R O L L E M P L O Y M E N T

ECONOMIC HIGHLIGHTSB A L T I M O R E M E T R O A R E A

1.4m i l l i o n

at July

2014

J O B C H A N G E

34.6t h o u s a n d

12 months ending July

2014

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

6.9% down from

7.2% one year ago

I N F L AT I O N

1.7%12 months ending July

2014

H O U S I N G P R I C E S

3.7%12 months

ending June

2014Source: Bureau of Labor Statistics, FHFA; September 2014.

at July 2014

THE BALTIMORE

AREA ECONOMY

THIRD QUARTER 2014



gained 34,600 new payroll positions during the 12 months

ending July 2014, first in its peer group . This compares to

the 20-year annual average of 11,8.00 new payroll jobs .

JOB GROWTH BY SECTOR

Over the past 12 months, nine sectors added jobs in the

Baltimore metro area, up from only six in the 12 months

ending April 2014 . The top three sectors are Professional/

Business Services, Leisure/Hospitality, and Construction/

Mining – with a total of 23,600 new jobs added to the

economy in these three sectors alone . The Professional/

Business Services and Leisure/Hospitality sectors shared

the lead for the amount of payroll jobs added in the past

12 months, each adding 8.,8.00 payroll jobs . These totals

exceeded the Professional/Businesses Services sector’s

20-year annual average of 4,8.00 jobs and the Leisure/

Hospitality sector’s 20-year annual average of 1,700 jobs .

UNEMPLOYMENT RATE

The Baltimore area unemployment rate was 6 .9.% (not

seasonally adjusted) at July 2014, down from 7 .2% one

year earlier . This compares to the seasonally-adjusted

national rate of 6 .2% in July 2014 . Among comparable metro

PAYROLL JOB GROWTH Baltimore Metro Area | 12 Months Ending July 2014

-6,000 -4,000 -2,000 0 2,000 4,000 6,000 8,000 10,000

Manufacturing

Federal Government

Information

Other Services

Wholesale Trade

Financial Services

Retail Trade


Education/Health

State/Local Gov

Construction/Mining

Leisure/Hospitality

Prof/Business Services

J O B C H A N G E

+38,700

-4,100


34.6

0

5

10

15

20

25

30

35

40

Baltimore St. Louis Milwaukee Detroit Cleveland Pittsburgh

PAYROLL JOB GROWTH Comparable Metro Areas | 12 Months Ending July 2014

TH

OU

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DS

OF

NE

W

PAY

RO

LL J

OB

S


THE BALTIMORE AREA ECONOMY

Note: In thousands of payroll jobs. Data are not seasonally adjusted.Source: BLS, Delta Associates; September 2014.

Prof/Business Services

Leisure/Hospitality

Construction/Mining

State/Local Govt

Education/Health


Retail Trade

Financial Services

Wholesale Trade

Other Services

Information

Federal Government

Manufacturing

Total

225 .0

142 .3

78. .5

169. .0

251 .3

46 .4

139. .1

77 .8.

53 .4

54 .4

15 .9.

50 .5

56 .5

1,360.1

8. .8.

8. .8.

6 .0

5 .2

4 .5

2 .3

1 .6

0 .9.

0 .6

(0 .5)

(0 .9.)

(1 .1)

(1 .6)

34.6

4 .8.

1 .7

0 .7

1 .0

4 .5

0 .5

0 .3

0 .1

0 .2

0 .5

-0 .1

0 .1

-2 .5

11.8

TRENDS IN EMPLOYMENT BY MAJOR SECTORBaltimore Metro Area | In Thousands

JULY 2014

12-MONTHCHANGE

20-YEAR ANNUAL AVERAGE

-50

-40

-30

-20

-10

0

10

20

30

40

94 95 96 97 98 99 00 01 02 03 04 05 06 07 08 09 10 11 12 13 14*

20-Year Annual Average = 11,800/Year

*12 months ending in July 2014.

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PAYROLL JOB GROWTH Baltimore Metro Area



areas, Baltimore holds the third-lowest unemployment

rate as of July 2014 . Although the Baltimore metro area’s

unemployment rate has increased during the past several

months, the cause for this is formerly-discouraged

unemployed workers re-entering the labor market in search

of jobs . This is a positive sign and the result of an increase

in hiring as of late . We expect the Baltimore metro area’s

unemployment rate to decline into the mid-6% range by the

end of 2014 .

CYBER-SECURITY FIELD GAINS NEW INVESTMENT FUND

The Baltimore metro area has established itself as one of

the main hubs for cyber-security jobs . Efforts such as the

Maryland Technology Development Corporation’s new

investment fund should help further strengthen Baltimore’s

position in this sector . The fund will invest up to $100,000

in companies that are developing and commercializing

new cyber-security projects . Not only will this help cyber-

security companies grow, but this will also help combat

the growing amount of cyber-security threats companies

are facing . Cyber threats can significantly hurt consumers’

trust in companies, weakening sales .

Additionally, Towson University students studying cyber-

security now have access to internships at the National

Security Agency . Towson is only one of 13 schools that have

earned recognition from the NSA as one of its National Centers

of Academic Excellence in Cyber Operations . Students at the

13 universities that received this recognition gain access to

internships that are set aside especially for them .

Furthermore, the University of Maryland University College

has tripled the amount of its undergraduate and graduate

students in its cyber-security program since its launch

in 2010 . Now, more than 4,8.00 students are taking the

online college’s cyber-security program . Such initiatives

are important in order to sustain the significant growth

occurring within the industry .

REGIONAL CONSUMER PRICE INDEX

Overall inflation in the Washington/Baltimore region was

1 .7% during the 12 months ending July 2014, compared to

the national inflation rate of 2 .0% . Inflation for all types

of items remained relatively in check with the regional

inflation rate . Medical expenses only rose 2 .3% in the

UNEMPLOYMENT RATES Comparable Metro Areas | July 2013 vs. July 2014


0%

2%

4%

6%

8%

10%

12%

Pittsburgh Milwaukee Baltimore St. Louis Cleveland Detriot

July 2013 July 2014

UN

EM

PLO

YM

EN

T R

AT

E

National Rate*

6.2%

7.3%

Basis Point Change -80 -60 -60 -30 -100 -130

*Seasonally adjusted.


AN

NU

AL

PR

ICE

IN

DE

X C

HA

NG

E

CONSUMER PRICE INDEX (CPI ) Washington/Baltimore Region

-2%

-1%

0%

1%

2%

3%

4%

5%


Note: Data is 12 months ending in each period, through July 2014.




Washington/Baltimore region during the past 12 months,

the lowest rise in a 12 month period since November 2009. .

Also, housing fuel and utilities have decreased 1 .4% during

the same period after rising 7 .2% during the 12 months

ending March 2014 and 4 .0% during the 12 months ending

May 2014 . For the balance of 2014, we expect inflation

to be contained locally, as slowly progressing economic

conditions keep prices in check, with growth of 1 .5% to 2 .5% .

As long as appropriate monetary measures are in place at

the Federal level, inflation should remain controlled .

HOUSING PRICES

House prices increased 3 .7% during the 12 months ending

June 2014 in the Baltimore metro area, according to the

Federal Housing Finance Agency (FHFA) . This compares to a

national increase of 5 .3% during the same period, according

to FHFA’s methodology . Of note, the Baltimore metro area

is not one of the 20 metros tracked monthly by the Case-

Shiller index .

Baltimore’s job growth remains above the long-term

average, which will support a healthy local housing market .

However, as we expected, the rate of price growth has

decelerated as the economy continues to experience the

effects of sequestration – notwithstanding the partial

roll-back that is underway – and the fact that housing

has become increasingly unaffordable due to the slower

acceleration of wage growth .

REGION’S CORE INDUSTRIES

The Baltimore metro area’s gross regional product (GRP) was

$162 .8. billion in 2013 in current year dollars, an increase

of 3% over 2012 . Federal and financial activities make up

a notable portion of the economy, generating 27% and

20%, respectively, of the Baltimore metro area’s economic

activity . The level of Federal procurement spending in

the Baltimore metro area rose during 2013 . Procurement

spending totaled an estimated $9. .8. billion during 2013, up

from $9. .4 billion during 2012 in current year dollars . This

is in contrast to the Washington metro area, where Federal

procurement spending has been declining .

BALTIMORE AREA ECONOMIC OUTLOOK

We expect the Baltimore metro economy to finish out the

year strongly and to continue its positive momentum into


GRP = Gross Regional Product; totals are estimates and may not round to 100%.

2013

GRP IN BILLIONS $ % OF GRP Total Federal $s $44.0 27%

Portion Procurement $9.8 6%

Financial Activities $32.6 20%

Prof/Business Services $24.4 15%

Education/Health $17.9 11%

Leisure/Hospitality $6.5 4%

Other $37.4 23%

Total GRP $162.8 100%

CORE ECONOMIC SECTORS Baltimore Metro Area

Source: BEA, U.S. Conference of Mayors, Delta Associates; September 2014. Note: % GRP reflects the most recent data available from the BEA.

FEDERAL PROCUREMENT SPENDING Baltimore Metro Area

DO

LLA

RS

IN

BIL

LIO

NS

Note: Estimate of current year dollars.

$0

$2

$4

$6

$8

$10

$12

2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013

Source: U.S. Census, BEA, U.S. Conference of Mayors, Delta Associates; September 2014.

HOME PRICES Baltimore Metro Area vs. United States

Source: Federal Housing Finance Agency, Delta Associates; September 2014.

PE

RC

EN

T C

HA

NG

E

Note: Seasonally adjusted purchase-only price. *12-month change at June 2014.

-10%

-5%

0%

5%

10%

15%

20%

2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014*

Baltimore MSAUnited States



2015 . Jobs continue to be added to the metro area at a rate

above the 20-year annual average . While some of the jobs

being created are lower-wage positions, such as many of

the leisure/hospitality jobs, others are higher-wage such as

many of the professional and business services positions .

The higher-wage positions will have a greater multiplier

effect throughout the rest of the regional economy .

The local economy likely will continue generating jobs at a

rate above the 20-year average during the 2014-16 period .

We project that the Baltimore metro area economy will add

16,300 net new jobs in 2014, followed by 17,600 in 2015 and

20,400 in 2016 . Employment growth in early 2014 was not

as strong as it has been recently, so we expect the annual

average for this year to be less than the total for the 12

months ending in July 2014 .

We expect most of the upcoming hiring to be generated by

the Professional/Business Services and Education/Health

sectors . The demand for cyber-security workers and the

growing private sector will drive the local economy during

the 2014-16 period .


JOB GROWTH Baltimore Metro Area


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-50

-40

-30

-20

-10

0

10

20

30

2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016

3-Year Projected Average = 18,100/Year 20-Year Average = 11,800/Year

We expect the Baltimore metro economy to finish out the year strongly and to continue its positive momentum into 2015.


AN OVERVIEW OF THE WASHINGTON

CONDOMINIUM MARKET

THIRD QUARTER 2014

CONSTRUCTION DELIVERIES

CONSTRUCTION STARTS

NET SALES VOLUME

THIRD QUARTER 2014

453PAST 12 MONTHS

1,612PRIOR 12-MONTH PERIOD

1,944

PIPELINE AT SEPTEMBER 2014

PRICES

11.9%NEW UNITS

1.2%RESALES

CONCESSIONS

1.6%AT SEPT 2014

2.1%AT SEPT 2013

MONTHS OF INVENTORY

months

SALES PACE

3,119

16.7

PROJECTED STARTS IN 2014

2,304STARTS IN 2013

1,578

PROJECTED DELIVERIES IN 2014

DELIVERIES IN 2013

2,004SOLD OUT SINCE 2013

2.8

INTRODUCED IN PAST 12 MONTHS

sales per month

3.4sales per month

983

UNSOLD NEW CONDO UNITS


AN OVERVIEW OF THE BALTIMORE

CONDOMINIUM MARKET

THIRD QUARTER 2014

CONSTRUCTION DELIVERIES

CONSTRUCTION STARTS

NET SALES VOLUME

THIRD QUARTER 2014

55PAST 12 MONTHS

189PRIOR 12-MONTH PERIOD

323

PIPELINE AT SEPTEMBER 2014

PRICES

-2.9%NEW UNITS

2.0%RESALES

CONCESSIONS

1.2%AT SEPT 2014

2.6%AT SEPT 2013

MONTHS OF INVENTORY

months

SALES PACE

271

14.0

PROJECTED STARTS IN 2014

50STARTS IN 2013

80

SOLD OUT SINCE 2013

2.1

PAST 12 MONTHS

sales per month

N/Asales per month

488

80PROJECTED DELIVERIES IN 2014

DELIVERIES IN 2013

UNSOLD NEW CONDO UNITS


2STATE OF THE

MID-ATLANTIC CLASS A

APARTMENT MARKET


ANNUAL AVERAGE EFFECTIVE RENT GROWTH

MID-ATLANTIC CLASS A LOW-RISE APARTMENTS SEPTEMBER 2014

Source: Delta Associates, September 2014.

ANNUAL AVERAGE EFFECTIVE RENT GROWTH

MID-ATLANTIC CLASS A MID AND HIGH-RISE APARTMENTS | SEPTEMBER 2014


SUPPLY/DEMAND RELATIONSHIP

MID-ATLANTIC CLASS A APARTMENT MARKETSNEXT 36 MONTHS: PERIOD ENDING SEPT 2017


STABILIZED VACANCY RATES

MID-ATLANTIC CLASS A APARTMENT MARKETS


ANNUAL AVERAGE EFFECTIVE RENT GROWTH Mid-Atlantic Class A Low-Rise Apartments | September 2014


$800 $1,100 $1,400 $1,700

SUBURBAN PHL.

SUBURBAN BALT.

SUBURBAN MD

NORTHERN VA

3Q 2009 Increase 2009-2014

ANNUAL INCREASE Past 5 Yrs

Past 1 Yr

3.6%

3.0%

3.4%

2.4%

1.0%

1.0%

1.4%

2.3%

SUPPLY/DEMAND RELATIONSHIP Mid-Atlantic Class A Apartment Markets Next 36 Months: Period Ending September 2017


0

5,000

10,000

15,000

20,000

25,000

30,000

35,000

40,000

45,000

Washington Baltimore

Supply

Demand

Projected Stabilized Vacancy % at

September 30, 2017 4.5% 3.0%

ANNUAL AVERAGE EFFECTIVE RENT GROWTH Mid-Atlantic Class A Mid- and High-Rise Apartments | September 2014


$1,200 $1,600 $2,000 $2,400 $2,800

BALTIMORE CITY

SUBURBAN MD

CENTER CITYPHILADELPHIA

NORTHERN VA

THE DISTRICT

3Q 2009 Increase 2009-2014

ANNUAL INCREASE Past 5 Yrs

Past 1 Yr

1.4%

3.8%

2.6%

0.9%

1.6%

1.0%

-0.1%

1.2%

4.3%

-0.1%

STABILIZED VACANCY RATES Mid-Atlantic Class A Apartment Markets


3.7% 3.4%

1.9%

3.9% 4.2%

2.8%

3.9%

4.6% 5.0%

4.6%

3.6%

2.9%

0.0%

1.0%

2.0%

3.0%

4.0%

5.0%

6.0%

Washington Baltimore Philadelphia

Q3 2011 Q3 2012 Q3 2013 Q3 2014

STA

BIL

IZE

D V

AC

AN

CY

RA

TE

A SNAPSHOT OF THE

CLASS A APARTMENT MARKET

THIRD QUARTER 2014


WASHINGTON METRO AREA

RECORD ABSORPTION & A DROP IN STARTS SET THE STAGE FOR A REBOUND IN RENTS.ARE WE SEEING THE BEGINNING OF THE END OF THE SUPPLY PROBLEM?

RECORD SETTING CLASS A ABSORPTION CONTINUES, AS 10,663 CLASS A UNITS WERE ABSORBED OVER THE PAST 12 MONTHS77% ahead of our long term average, despite weak job growth over the past year

THE GOOD NEWS

2014 TRENDS

METRO-WIDE, THE STABILIZED VACANCY RATE FOR ALL CLASSES OF INVESTMENT GRADE APARTMENTS REMAINED UNCHANGED OVER THE PAST YEAR – AT 4.1%However, Class A vacancy edged up to 4.6%

METRO AREA CLASS A RENTS ROSE BY 1.1% OVER THE PAST 12 MONTHSdue to unprecedented absorption levels

THE 36-MONTH DEVELOPMENT PIPELINE EDGED UP SLIGHTLY TO 40,175 UNITSwith 32,081 of those units currently under construction

Largely due to favorable demographic and lifestyle trends, the region has been able to weather the onslaught of supply with

record setting absorption – thus far . This onslaught has been building up in intensity since the credit markets began lending

again in 2011 . Whether the region can continue on this track is questionable, given an additional 26,500 units that will deliver

over the next 24 months and projected job growth that is slower-than-average for a recovery cycle .

STATE OF THE MID-ATLANTIC

CLASS A APARTMENT MARKET

THIRD QUARTER 2014

CONSTRUCTION STARTS IN THE 3RD QUARTER ARE AT THEIR LOWEST LEVEL IN 3 YEARSbut an elevated amount of units are expected to start construction before the end of the year



RENTS

Metro area effective rents for all classes of investment

grade apartments rose by 1 .0% over the past year; Class A

rents increased by 1 .1% while Class B rents rose by 0 .9.% .

VACANCY

Washington metro area stabilized vacancy for all classes

of apartments is 4 .1%, similar to the national rate of 4 .1% .

The vacancy rate for Class A apartments in the Washington

metro area at September 2014 increased to 4 .6% from 3 .9.%

at third quarter 2013 .

CONCESSIONS

Concessions as a barometer of the market have lost their

usefulness, because the share of properties in the region

using rent optimization software has increased and “real-

time pricing” without concessions has become widespread .

We will continue to track these data in our statistical tables

for the time being, but we no longer comment on this metric .

LEASE-UP

As the number of projects in lease-up remains elevated

in the third quarter of 2014, the market saw per-project

monthly lease-up pace hold up well at an average of 16

units leased per month per project, the same as the rate

registered last year . This is a testament to the strength of

the market, as there are 76 projects in active lease-up today

compared to 60 in the third quarter of 2013 . (See Table 3 .11)

The number of projects in lease-up will continue to climb,

with a large slate of projects set to deliver over the next 12

months, likely putting downward pressure on per-project

lease-up pace .

PIPELINE

The pipeline of likely deliveries over the next 36 months

remained relatively unchanged during the third quarter

of 2014, at a record-high level of 40,175 units . As pro

formas become more difficult to pencil in light of rising

construction costs and relatively flat rents, we expect the

pipeline to shrink to a more healthy level over the next 12

to 24 months . Most of the decline will come from projects

that delay starting construction, since there are currently

23,358. units under construction metro-wide that have not

STATE OF THE MID-ATLANTIC CLASS A APARTMENT MARKET

APARTMENT VACANCY RATES Major Apartment Markets

0.0%

1.0%

2.0%

3.0%

4.0%

5.0%

6.0%

NY LA Chi Phi* Wash* Balt* DFW Phx Hou Atl

Source: Reis Services, LLC, Delta Associates; September 2014.

1/ The 79 largest apartment markets in the U.S. * Mid-Year 2014 data except for Washington, Baltimore, and Philadelphia which are as of Q3 2014.

VA

CA

NC

Y R

AT

E (

ALL

CLA

SS

ES

)

National Rate: 1/

4.1%

MARKET RATE APARTMENT DEVELOPMENT PIPELINE Washington Metro | 2005 –2014

0

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*


MA

RK

ET

RA

TE

UN

ITS

PLA

NN

ED

A

ND

UN

DE

R C

ON

ST

RU

CT

ION

* As of Third Quarter 2014.

ANNUAL NET APARTMENT ABSORPTION Class A & B Units | Washington Metro

8,619

6,202

3,668 3,303 4,163

3,580

583 360

1,965

4,932

6,493 6,185

7,720

8,639

13,234

0

2,000

4,000

6,000

8,000

10,000

12,000

14,000


NET

ABS

ORP

TIO

N O

F CL

ASS

A &

B U

NIT

S

Long-Term Average = 5,333



begun leasing yet and only 9.% of these units are suitably

sized to switch to a condominium regime before delivery .

STARTS

Over the past 12 months, 12,424 units started construction

metro-wide – while still above average, is the lowest annual

total since 2010 . The majority of starts over the past year

occurred in the fourth quarter of 2013 and the second

quarter of 2014 . Only 1,615 units at eight projects started

construction this quarter, the smallest quarterly total since

the second quarter of 2011 . However, we expect this to

be a temporary lull since an elevated amount of units is

scheduled to begin construction in the fourth quarter .

DELIVERIES

We project that 16,608. units will deliver over the next 12

months, a 10% increase over the 15,101 units delivered in the

previous year . Deliveries are expected to decrease to 9.,9.44 units

during the following 12-month period . Approximately 58.% of

these expected deliveries are currently under construction .

SUPPLY/DEMAND STATISTICS

ABSORPTION PACE PER PROJECT PER MONTH For Projects in Initial Lease-Up | Washington Metro

0

2

4

6

8

10

12

14

16

18

20

9/07 9/08 9/09 9/10 9/11 9/12 9/13 9/14


MO

NTH

LY A

BSO

RPTI

ON

PAC

E PE

R PR

OJE

CT S

INCE

MAR

KETI

NG

BEG

AN

Number of Projects in Initial

Lease-Up: 30 46 43 32 23 33 60 76


EFFECTIVE RENTAL RATE AND VACANCY RATE All Types and Classes of Apartments | Washington Metro

$700

$800

$900

$1,000

$1,100

$1,200

$1,300

$1,400

$1,500

$1,600

$1,700

$1,800

0.0%

0.5%

1.0%

1.5%

2.0%

2.5%

3.0%

3.5%

4.0%

4.5%

5.0%

5.5%Average Effective Base RentStabilized Vacancy

STA

BIL

IZE

D V

AC

AN

CY

RA

TE

AV

ER

AG

E E

FF

EC

TIV

E B

AS

E R

EN

T


3 . 5 % / 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 2014.

NOVA SUB MD DISTRICT METRO-WIDE

13,234

6,49.3

58.3

4,611

1,49.8.

421

Q4 13 - Q3 14

Q4 12 - Q3 13

Q4 11 - Q3 12

6,014

2,761

-1,152

2,610

2,234

1,314

NET ABSORPTION CLASS A & B:

15,101

16,608.

9.,9.44

4,8.65

6,006

7,09.6

3,9.04

1,9.9.6

Q4 13 - Q3 14

Projected:

Q4 14 - Q3 15

Q4 15 - Q3 16

Q4 16 - Q3 17

4,618.

5,207

3,29.5

1,244

4,477

4,305

2,745

1,625

DELIVERIES:

1,615

12,424

320

5,8.70

Q3 2014

Q4 13 - Q3 14

39.0

3,037

9.05

3,517

STARTS:

40,175

36,09.8.

36,564

16,662

14,719.

14,175

At 9./2014

At 9./2013

At 9./2012

12,440

11,9.8.7

12,300

11,073

9.,39.2

10,08.9.

36-MONTH PIPELINE1:

1Includes vacant units in projects leasing up, units under construction and units expected to begin construction and deliver in the the next 36 months.

ABSORPTION, DELIVERIES, STARTS, AND PIPELINE SUMMARY

Equity Residential: 1111 Belle Pre, Alexandria, VA



SUBSTATE RECAP

Northern Virginia’s market performance is lagging the other substate areas . In a year that saw record

absorption metro-wide, Northern Virginia only experienced a modest increase over the past year . However,

deliveries increased significantly, causing more competition in the local marketplace . A bright spot: Rent

growth in Tysons Corner outpaced all other low-rise submarkets in the metro area, likely due to the debut

of Metrorail’s new Silver Line in late July .


Suburban Maryland’s Class A market performance in Suburban Maryland has been improving in recent

quarters, with rents increasing for both low-rise and high-rise product and vacancy remaining constant

over the past year . This substate region was the only one where record-setting absorption nearly outpaced

deliveries of Class A product . This trend of strong demand, coupled with more restrained construction

starts, will sustain more positive market performance .

The District’s rent growth is stronger than the high-rise submarkets in the suburbs and vacancy is also

lower . Much of the new product that will begin leasing over the next 24 months is concentrated in emerging

markets such as Mt . Vernon Triangle, NoMa, H Street, and the Capitol Riverfront, but several projects are

also being built in hot areas along the 14th and U street corridors . The amount of planned deliveries is still

a concern, although The District’s recent population surge – averaging about 1,000 new residents a month,

has helped absorbed some of the new supply .

Urban Atlantic LLC & The JBG Companies: Sky House East, Washington, DC

OFFICE TO RESIDENTIAL –

A NEW TREND?

While office-to-residential conversions are more prevalent in other Mid-Atlantic cities such as Baltimore and Philadelphia, whose downtowns have an abundance of older, obsolete office buildings, a handful of projects in the Washington metro area have been completed in recent years. In The District, older office buildings in the West End and the East End have been transformed into apartment buildings such as West End 25 and The Woodward Building; and in Crystal City, the relocation of the U.S. Patent and Trademark Office spurred the repurposing of the Crystal Plaza II office building to 220 Twentieth Street. Currently, there are approximately 593 units in three projects around the metro area that are currently being converted from office space to rental apartments. See below for a sample:

• The former EPA towers in the Southwest Waterfront have been converted to 213-unit Sky House East and 211-unit Sky House West.

• The George is a 169-unit conversion in Wheaton and began pre-leasing units over the summer.

We will know in the period ahead how successful office-to-residential conversion buildings will be in a marketplace where renters have many built-as-new apartment projects to choose from in a given submarket, since some of these conversions can have floor plan design challenges – often producing unique layouts. Since the regional office market is experiencing a flight to quality, we expect more of these obsolete office buildings to convert to residential (both for-rent and for-sale).

We think the real issue is how will this trend play in the suburbs, where we have an enormous stock of obsolete office buildings?

RN ON INVESTMENT



SUBSTATE RECAP


NORTHERN VIRGINIA

ANNUAL CLASS A RENT GROWTH

CRYSTAL CITY/ PENTAGON CITY SOUTH ARLINGTON

3.6% -1.5%

36 MONTH PIPELINE

16,662PAST 12 MONTHS

13.2%

STABILIZED VACANCY

4.9%

Q3 2014

3.8%

Q3 2013

36 MONTHS

3,508

ABSORPTION

6,006

DELIVERED

15%

ANNUAL CHANGE IN ABSORPTION

-0.1%

1 320

Q3 2014 CONSTRUCTION STARTS

PROJECTS UNITS

7,096PROJECTED DELIVERIES Q4 2014 – Q3 2015

HIGH-RISE

TYSONS CORNER FAIR OAKS

7.0% -1.9%

1.0%LOW-RISE

CLASS A: THIRD QUARTER

ANNUAL CLASS A

SUBURBAN MARYLAND


N. BETHESDA/ ROCKVILLE BETHESDA

2.6% -2.9%

36 MONTH PIPELINE


3.8%

STABILIZED VACANCY

4.6%

Q3 2014

4.6%

Q3 2013

36 MONTHS

4,424

ABSORPTION

4,618

DELIVERED

56%


1.2%

3 390


PROJECTS UNITS


HIGH-RISE

ANNAPOLISHOWARD COUNTY/ COLUMBIA

6.0% -4.2%

1.0%LOW-RISE


ANNUAL CLASS A


THE DISTRICT

NORTHEAST CENTRAL

7.7% -0.2%

36 MONTH PIPELINE


17.9%

STABILIZED VACANCY

Q3 2014

2.5%

Q3 2013

36 MONTHS

2,731

ABSORPTION

4,477

DELIVERED

22%


HIGHEST $/SF SUBMARKET

$3.40/SF

2.6%

C.H./SHAW SUBMARKET

average

4 905


PROJECTS UNITS



ANNUAL CLASS A

3.5%



GROWING DEMAND

The Washington area’s Class A apartment absorption was

10,663 units over the past 12 months — a 77% increase

over the 10-year average . This record-setting absorption

was not at the expense of the Class B market, which also

experienced positive absorption (at least in the suburbs) .

Contributing factors to this uptick include:

• Apartment supply that is no longer constrained .

• An increase in jobs and household that tend to rent rather than own .

• Resulting in an increase in the share of renter households vs . owners .

Over the coming quarters, three factors will be necessary

for rental demand generation:

• Job growth .

• Demographic shifts:

• The “de-nesting” of 25- to 34-year-olds who are living at home .

• The “un-grouping” of 25- to 34-year-olds who are living together to save money .

• Renter/owner preference shifts: The ratio of renters to owners stays the same or increases .

We expect all three of these factors to continue to favor the

apartment market through this housing cycle . We project

“de-nesting” and “un-grouping” to take place in the 2014 to

2018. period, with improved job growth in the region . This

trend will produce solid Class A apartment absorption .

Therefore, we project demand of approximately 9.,167 Class

A units per annum over the next three years, fewer than the

10,663 units during the past 12 months, but stronger than

the metro region’s 10-year average of 5,9.25 units per annum .

SUPPLY/DEMAND AND RENT OUTLOOK

Given the projected delivery schedule of projects currently

under construction, we expect the region-wide vacancy rate

for stabilized Class A apartment properties to edge upward

from 4 .6% today to the low 5% range before declining to

approximately 4 .5% by the third quarter of 2017 . However,

CLASS A APARTMENT UNIT STARTS Washington Metro | 2012-2014


0

1,000

2,000

3,000

4,000

5,000

6,000

7,000

Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3

District Sub MD No VA

NU

MBE

R O

F CL

ASS

A M

ARKE

T RA

TE U

NIT

S

Class A Long-Term Average Quarterly Absorption = 1,508

2012 2013 2014

% O

F TO

TAL

HO

US

EH

OLD

S

28%

29%

30%

31%

32%

33%

34%

35%

36%

37%

2007 2008 2009 2010 2011 2012 2013 2014

Washington MetroU.S.

Source: U.S. Census, Delta Associates, September 2014.

RENTER HOUSEHOLDS Washington Metro vs. U.S. | 2007 - 2014

Y E A R LY A V E R A G E

PROJECTED DELIVERIES Projects Currently Under Construction | Washington Metro | 2014-2016


0

1,000

2,000

3,000

4,000

5,000

6,000

7,000

Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4

DistrictSub MDNo VA

2014 2015 2016

NU

MBE

R O

F CL

ASS

A M

ARKE

T RA

TE U

NIT

S

Class A Long-Term Average Quarterly Absorption = 1,508


We project demand of approximately 9,167 Class A units per annum over the next three years, fewer than the 10,663 units during the past 12 months, but stronger than the metro region’s 10-year average of 5,925 units per annum.



there will be significant variance in conditions among

submarkets . (See Table A on page 40 .)

At the regional level, Class A rents will be flat to slightly

negative over the next 24 months due to the large slate of

scheduled deliveries compared to projected demand levels .

Rents have thus far held up well as competition increased

over the past year due to record absorption, but given

a robust delivery schedule of new product and projected

absorption (while elevated) below the record-setting pace

as of late, rents will likely be flat at the regional level by

the end of 2014 and modest declines are probable in 2015 .

Better projects in stronger submarkets will outperform

these market-wide averages . We expect rent growth to

recover to the 3 .0% range by 2017 and higher in 2018. .

RETURN ON INVESTMENT

Total return on apartment investment (cash flow plus

appreciation) in the Washington market continues to track

below the national average, as reported by NCREIF . While

this index reports a 7 .06% 12-month total return, this

measure is significantly off the cyclical peak of 28. .64% in

2010 . This breather is to be expected after such a huge run-

up earlier this cycle in area prices . (See Table B on page 41 .)

Washington was early to recover from the 2009. recession

and was also early to peak in investment returns .

WASHINGTON INVESTMENT SALES

The Washington investment sales market experienced an

increase in Class A sales activity in 2013, with $1 .63 billion of

multifamily Class A building sales (18. low-rise properties and

five mid-/high-rise properties) . The average per unit price for

2013 sales was 17 .2% higher than year-end 2012 for low-rise

units (at $235,000) . High-rise prices were up 8. .4% from year-

end 2012 (at $426,000) . These totals do not include the break-

up and sale of stalwart developer and operator Archstone to

AvalonBay and Equity Residential . This transaction, covering

138. existing properties nationally and development sites

throughout the region, closed in February 2013 .

Through August 2014, we note $9.26 million of multifamily

Class A building transaction volume in 11 trades – compared

to $1 .04 billion in the same period last year . Two of these

trades set records for the region within weeks of one

another, with the later transaction breaking the $9.00,000

per unit barrier .

DEMAND AND SUPPLY PROJECTIONS Washington Metro Class A Apartment Market September 2014 – September 2017


02468

1012141618

The District Sub MD No VA

Net Absorption: 9,167/Year = 27,500

D E M A N D

S U P P LY 1

Planned and may deliver by 9/17: 8,094 units Under construction supply: 32,081 units 2

Total = 40,175 units 1 Probable supply after projected attrition. 2 Includes unleased units at projects in lease-up.

4.6% 4.0% 4.9%

Projected Stabilized Vacancy % at September 2017 Projected Stabilized Vacancy % at September 2017: 4.5% Metro Wide

MAR

KET

RATE

UN

ITS

IN T

HOU

SAN

DS


CLASS A APARTMENT VACANCY RATE Washington Metro | Year-End 2007-2017

0%

1%

2%

3%

4%

5%

6%

2007 2008 2009 2010 2011 2012 2013 2014* 2015 2016 2017

No VA Sub MD The District


2.9% 3.6% 4.4% 3.6% 5.0% 4.2% 4.7% 4.9% 5.1% 4.8% 4.6%

STA

BIL

IZE

D V

AC

AN

CY

RA

TE

Washington

Metro Vacancy

*Q3 2014 Class A Vacancy = 4.6%

ANNUAL CLASS A APARTMENT RENT GROWTH Washington Metro | 2002 - 2017

-4%

-2%

0%

2%

4%

6%

8%

10%Long-Term Average = 4.4%


PE

RC

EN

T E

FF

EC

TIV

E R

EN

T G

RO

WT

H

* Annual rent growth at Third Quarter 2014 is 1.1%



It is our sense, and those of our 2013 Delta Associates

Market Maker Survey participants, that apartment cap

rates nudged up slightly during 2013, as market conditions

became more competitive amid increased supply and job

growth became muted in the region . Despite this uptick in

cap rates, our survey indicated that apartments have been

and will remain in favor as an asset class . So far in 2014,

apartments remain in favor and cap rates appear to be

holding steady at cyclical lows .

A total of 12 multifamily land sales have closed through

August 2014, totaling $19.6 million, with the capacity for

more than 3,000 multifamily units . More than $28.2 million

in multifamily land sales was completed in 2013, with the

capacity for more than 4,200 units, compared with $338.

million in sales during 2012 .

LONG-TERM RENTAL OUTLOOK BRIGHT

Demographic and housing trends will power a healthy

apartment market over the next five years or more .

Due to a confluence of factors, including the Millennial

demographic bulge and the increased preference to rent

rather than own following the national housing collapse,

there is an extremely large cohort of renters expected to

emerge that will increase in size for another decade . The

prime renter cohort of population of 20-34 year olds will

grow to nearly 68. million nation-wide by 2024 . This pool

of renters should power a strong national and local rental

market over the intermediate to long term .

A driving factor why these Millennials will rent rather than

own is student debt . The average student debt balance for

25 year-olds has nearly doubled over the past decade from

$10,649. in 2003 to $20,9.26 in 2013 . Furthermore, the breadth

of student debt has also grown over the past decade, with

nearly 45% of 25 year-olds still maintaining student debt,

up from 25% in 2003 . This large and widely shared debt

burden will delay saving for a down payment and will likely

lengthen the tenure of renters in this generation .

Source: Federal Reserve Bank of New York, Equifax, Delta Associates, September 2014.

STUDENT LOAN DEBT United States

$10,000

$12,000

$14,000

$16,000

$18,000

$20,000

$22,000

25%

30%

35%

40%

45%

2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013

SH

AR

E O

F 2

5 Y

EA

R O

LDS

WIT

H

ST

UD

EN

T D

EB

T

AV

ER

AG

E S

TU

DE

NT

LO

AN

BA

LAN

CE

O

F 2

2 -

25

YE

AR

OLD

S


DEMOGRAPHIC MOST LIKELY TO RENT Cumulative Number of People Age 20 – 34 | United States

Source: U.S. Census, Delta Associates, Fannie Mae, September 2014.

54

56

58

60

62

64

66

68

70

2000

2001

2002

2003

2004

2005

2006

2007

2008

2009

2010

2011

2012

2013

2014

2015

2016

2017

2018

2019

2020

2021

2022

2023

2024

2025

IN M

ILLI

ON

S

The Donohoe Companies: Gallery Bethesda, Bethesda, MD

Demographic and housing trends will power a healthy apartment market over the next five years or more.



BALTIMORE METRO AREA: RENT GROWTH REMAINS POSITIVEAS VACANCY RATE DECLINES

Rental housing fundamentals in the Baltimore area are

healthy, with stable performance in the city and most

suburbs . Record absorption has been recorded over the past

12 months and supply had been limited in recent quarters;

however, the pipeline is on the rise and may have an impact

on market conditions .

THIRD QUARTER 2014 HIGHLIGHTS

• Stabilized Class A vacancy for the Baltimore metro area

is down 100 basis points from last year at this time,

to 3 .6% . Vacancy in Baltimore’s northern submarkets

is down to 2 .6% from 5 .3% at September 2013 . Vacancy

in Baltimore City is down to 2 .0% from 4 .0% a year

ago . Vacancy in Baltimore’s southern submarkets

edged upwards from 4 .5% last year to 5 .3% . At 3 .6%,

the Baltimore region’s vacancy rate outperforms the

national average of 4 .1% .

• Concessions in the Baltimore metro area have decreased

slightly since last year, to 1 .8.% at September 2014, from

2 .3% in September 2013 .

• Average effective rents in the metro area are $1,626

($1 .61 per SF) . Rents in the Baltimore metro area saw

an increase over the year with 1 .3% rent growth, caused

by strong growth in the suburbs . Rents in the northern

suburbs have increased by 2 .4% since September 2013,

mainly due to positive rent growth of 4 .0% over the year

in West & NW Baltimore County . Effective rents in the

southern suburbs increased by 0 .6% over the past 12

months, with the rent decline of 4 .2% in Howard County/

Columbia offsetting a 6 .0% rent increase in Annapolis .

Effective rents in the Baltimore City submarkets rose by

0 .9.% as a whole with rents in Fells Point/Inner Harbor

and Downtown increasing 0 .3% and 1 .3% respectively .

• The supply pipeline metro-wide at third quarter 2014

is up compared to the pipeline at third quarter 2013 .

About 6,38.2 units are under construction or planned

and may deliver in the next 36 months in the Baltimore

metro area, compared to 4,9.9.2 units from this time last

year . These counts exclude Baltimore’s southernmost

suburbs, Anne Arundel and Howard counties, whose


EFFECTIVE RENTAL RATE AND VACANCY RATE Class A Apartments | Baltimore Metro

$700

$800

$900

$1,000

$1,100

$1,200

$1,300

$1,400

$1,500

$1,600

$1,700

0.0%0.5%1.0%1.5%2.0%2.5%3.0%3.5%4.0%4.5%5.0%5.5%6.0%

Average Effective Base RentStabilized Vacancy

STA

BIL

IZE

D V

AC

AN

CY

RA

TE

AV

ER

AG

E E

FF

EC

TIV

E B

AS

E R

EN

T



* As of Third Quarter 2014

Obrecht Commercial Real Estate: The Gunther Apartments, Baltimore, MD



units are also counted in the Washington metro pipeline

(and do not account for attrition) .

• Lease-up pace for the eight actively marketing projects

in the Baltimore area currently averages 12 units per

month per project . Five of the seven projects were

delivered in 2013 . One project was delivered in 2012 and

the remaining two in 2014 . Projects that have recently

stabilized have an average lease-up pace of 11 units per

month at low-rise properties and nine units per month

at high-rise properties .

Limited supply in recent quarters has led to healthy rent

growth and low vacancy in the Baltimore area . Despite

an increase in supply pipeline this quarter, we project

that strong Class A apartment absorption – due to recent

demographic and lifestyle shifts inducing rental demand

– will help soak up the 36-month supply forecasted in the

area . Baltimore’s supply/demand relationship indicates that

vacancy rates will decelerate and rent growth is likely to stay

flat or experience slight gains over the next 24 months .

PHILADELPHIA METRO AREA: EXPERIENCES SLIGHT RENT INCREASE AND A DROP IN VACANCY

The Philadelphia metro area’s stabilized Class A vacancy rate fell

210 basis points to 2 .9.% in the third quarter of 2014, compared

to 5 .0% at this time last year, as vacancy decreased over the

year in all metro area submarkets . Suburban Pennsylvania

vacancy is down 240 basis points compared with September

2013, at 2 .4% . In Southern New Jersey, vacancy is at 2 .9.% – down

by 18.0 basis points from 4 .7% a year ago . Vacancy in Center City

also declined 19.0 basis points to 3 .6% in the same time period .

The sub-state areas of Southern New Jersey and Suburban

Pennsylvania experienced similar rent conditions with overall

rent growth of 2 .3% over the year with average effective rents

at $1,468. per month . Rents in Center City remained relatively

flat with a slight decrease of 0 .1% since September 2013 . Rent

growth in Southern New Jersey was strongest as it grew by

2 .9.% over the same period . Effective rents across the entire

Philadelphia metro area increased by 1 .5% over the past year .

Metro-wide, average effective rental rates are $1,69.3 ($1 .70

per SF) . Center City effective rents average $2,177 ($2 .28. per

SF) for high-rise product vs . $1,468. ($1 .44 per SF) for low-

rise product in the suburbs .


EFFECTIVE RENTAL RATE AND VACANCY RATE Class A Apartments | Philadelphia Metro

$1,000

$1,100

$1,200

$1,300

$1,400

$1,500

$1,600

$1,700

0.0%0.5%1.0%1.5%2.0%2.5%3.0%3.5%4.0%4.5%5.0%5.5%6.0%6.5%7.0%7.5%

2005 2006 2007 2008 2009 2010 2011 2012 2013 2014*

Average Effective Base RentStabilized Vacancy

STA

BIL

IZE

D V

AC

AN

CY

RA

TE

AV

ER

AG

E E

FF

EC

TIV

E B

AS

E R

EN

T



* As of Third Quarter 2014

Bozzuto: Arbors at Baltimore Crossroads, Baltimore, MD

Jefferson Apartment Group: Jefferson Pointe at West Chester, West Chester, PA



CITY OF PHILADELPHIA

An increase in supply over recent quarters has led to lackluster

rent growth and rising vacancy in Center City . Despite some

improvements this quarter, the number of units under

construction continues to increase, and as a result, we project

that the 36-month supply will slightly exceed the number of

units that will be absorbed in Center City by the end of our

36-month forecast period . There are currently about 4,9.14

units under construction or planned that may deliver in the

next 36 months in Center City . Philadelphia’s supply/demand

relationship indicates that vacancy will continue to edge up

slightly and rent growth is likely to stay flat over the next 24

months . However, this trend will be temporary and we expect

Center City to remain a healthy market .

SUBURBAN PENNSYLVANIA

Effective rents in Suburban Pennsylvania are up by 2 .0% when

compared with rents at September 2013 . Stabilized vacancy

is currently 2 .4% compared with last year’s level of 4 .8.% .

Concessions have dropped slightly over the last year, from

2 .3% of asking rent at September 2013 to 0 .9.% in the current

quarter . Effective rents in Bucks County are down 0 .3% over

the year, while Montgomery County experienced positive

growth of 2 .3% . Chester and Delaware counties experienced

the strongest rent gains in Suburban Pennsylvania with an

increase of 2 .9.% over the year . Stabilized vacancy is currently

also the lowest in Delaware and Chester Counties at 0 .9.% .

Stabilized vacancy in Bucks County is 1 .6%, and 4 .9.% in

Montgomery County at September 2014 .

SOUTHERN NEW JERSEY

Southern New Jersey has a stabilized vacancy rate of 2 .9.%

at September 2014, down from 4 .7% over the year . Mercer

County has the lowest stabilized vacancy rate among

Southern New Jersey submarkets, at 0 .9.%, from 2 .4% last

year at this time . Camden County has a stabilized rate

of 3 .0%, and Burlington County has a rate of 2 .8.%, down

from 5 .0% and 4 .5% respectively over the year . All of the

submarkets in Southern New Jersey experienced rent

growth with effective rents increasing 2 .9.% over the year .

Burlington County led this increase with a 4 .7% from third

quarter 2013 to third quarter 2014, compared to Camden

County’s rent growth of 0 .6% and Mercer County’s rent gain

of 2 .8.% over the same period .


A W O R D A B O U T O U R D E F I N I T I O N O F VA C A N C Y R AT E

We sometimes hear from apartment developers and managers

that their portfolio vacancy rate is 200 to 400 basis points

higher than the numbers we report, which places them under

unfair investor scrutiny. While we state methodological matters

at the end of our report (Section 5), we thought it appropriate to

describe here our term “vacancy.”

When we conduct our quarterly surveys, we obtain information

on “units available to lease” – that is, physical vacancy.

Obtaining the information this way, of course, may produce

several important differences from “vacancy” as reported in

your financial statements. Simply stated, the difference can be

characterized as:

Delta’s Definition: Available units to lease

Operating Statement Vacancy: Economic vacancy

Our definition (available units) may therefore be understated

compared to yours (economically vacant) by our exclusion of

units occupied by non-paying tenants (which we cannot know),

and of units not available for lease, such as employee units and

model apartments. We estimate that this adds about 100 to 150

basis points to your definition of vacancy, as compared with

ours. Our vacancy rate may also be understated, compared

with yours, by our exclusion of what are economically vacant,

on-notice units for which a lease to occupy in the future has

been signed (hence, they are not currently available to lease).

We estimate that this potentially adds another 150 to 200 basis

points to your definition of vacancy, as compared to ours.

Greystar: The Granary, Philadelphia, PA



Northern Suburban The Metro AreaVirginia Maryland District Total

Stabilized Inventory at 9/14 53,865 36,725 15,123 105,713Pipeline Through 9/17 w/attrition 1 16,662 12,440 11,073 40,175Inventory at 9/17 70,527 49,165 26,196 145,888

Vacant Units at 9/14 2 2,647 1,703 529 4,875New Supply Through 9/17 16,662 12,440 11,073 40,175Avail. Units Through 9/17 19,309 14,143 11,602 45,050

Underlying Demand Through 9/17 3 11,000 9,625 6,875 27,500

Vacant Units at 9/17 8,309 4,518 4,727 17,550

Overall Vacancy at 9/14 4 10.7% 10.1% 11.2% 10.6%Stabilized Vacancy at 9/14 4.9% 4.6% 3.5% 4.6%

Overall Vacancy at 9/17 4,5 11.8% 9.2% 18.0% 12.0%

Stabilized Vacancy at 9/17 4.9% 4.0% 4.6% 4.5%

RENTAL UNIT ABSORPTION SUMMARY

Northern Suburban The Metro AreaVirginia Maryland District Total 6

Class A Unit Absorption 3,508 4,424 2,731 10,663Class B Unit Absorption 1,103 1,590 (122) 2,571Total Absorption 4,611 6,014 2,610 13,234

1 Available units in apartment buildings currently under construction plus those planned to deliver by September 2017

totals 67,953 units. We assume 23% of the planned units will materialize, making a 36-month pipeline of 40,261 units.

See deliveries by year 2017 on Tables 3.13, 3.14, 3.16, 3.17, 3.19, and 3.20.2 In stabilized projects only.3 Projected annual underlying demand: Northern VA - approximately 3,667 units; Suburban MD - approximately 3,208 units;

The District - approximately 2,292 units. Underlying demand projections are driven by job growth, lifestyle changes, demoographics and other factors cited in

the preceding text. 36-Month Average/Year for Metro Area = 9,167 units. 4 Includes vacant units in projects still in initial lease-up.5 Assumes an attrition rate averaging 77% for planned units in the 36-month pipeline in Northern Virginia, Suburban Maryland, and The District.6 Substate areas may not add precisely to total because of rounding.

Source: Delta Associates; September 2014.

Supply vs. Demand (units)

Vacancy Rate at Third Quarter 2014

Projected Vacancy Rate at Third Quarter 2017 5

12-Month Period Ended September 2014

TABLE APROJECTED THIRD QUARTER 2017 VACANCY RATES

Washington Metro Area | Class A Apartment MarketAs of Third Quarter 2014

Inventory (units)

Washington Metro Area | Investment Grade Class A and Class B Apartments

PROJECTED THIRD QUARTER 2016 CLASS A VACANCY RATE



12-MONTH METRO AREA TOTAL RETURN 1

Atlanta 15.11%

Dallas 12.81%

Houston 12.35%

National Average 9.93%

Chicago 9.11%

Baltimore 9.02%

Austin 8.67%

Phoenix 7.86%

Philadelphia 7.33%

Washington 7.06%

1 NCREIF compiles returns based on its members' $70 billion apartment portfolio. The index includes both current income and estimated capital appreciation returns.

Source: Delta Associates, based on trailing 12-month data in NCREIF "Real Estate Performance Report: Second Quarter 2014".

TABLE BNATIONAL COUNCIL OF REAL ESTATE INVESTMENT FIDUCIARIES

Return Index: 12 Months Ending June 2014 1

Investment Grade Apartment Properties

TOTAL APARTMENT INVESTOR RETURNS Washington Metro vs. U.S. | 2003 – Mid-Year 2014

-30

-20

-10

0

10

20

30

40

U.S.

Washington Metro

Source: NCREIF, Delta Associates, September 2014.

TOTA

L RE

TURN

(IN

COM

E +

APPR

ECIA

TIO

N)

*As of Second Quarter 2014.

2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014

NATIONAL COUNCIL OF REAL ESTATE INVESTMENT FIDUCIARIES


SPONSORED BY BOZZUTOMARKET-RATE RENTAL PROPERTIES IN WASHINGTON MSA

Total Number of PropertiesTotal Number of Units

% OF % OFREVENUE $/SF $/UNIT GPI $/SF $/UNIT GPI Rents -- Apartments 17.73 15,668 94.8 28.22 25,057 91.7Rents -- Garage/Parking 0.10 90 0.7 0.93 784 2.8Rents -- Storage/Offices 0.21 171 1.2 0.43 346 1.6Gross Possible Rents 17.79 15,798 95.5 29.25 2,581 95.4Concessions 0.14 123 1.0 0.12 101 0.5Vacancies/Rent Loss 0.90 810 4.4 1.49 1,217 5.2Total Rents Collected 16.44 14,914 87.9 27.49 24,094 89.9Other Income 0.86 809 4.5 1.60 1,323 4.6Gross Possible Income ("GPI") 18.82 16,464 100.0 30.74 27,434 100.0

Total Collections 17.53 15,517 94.4 28.32 25,841 94.3EXPENSESManagement Fee 0.75 641 3.9 1.02 833 3.3Other Administrative 1.21 970 5.6 1.49 1,452 5.5Supplies 0.07 60 0.4 0.11 92 0.4Heating Fuel -- Common Areas only 0.04 37 0.6 0.17 129 0.5Common Areas & Apts 0.66 501 4.7 0.34 375 1.9Electricity -- CA Only 0.14 128 0.8 0.46 420 1.6Common Areas & Apts 0.17 153 4.5 0.83 867 4.5Water/Sewer -- Common Areas Only 0.46 435 2.2 0.44 382 1.3Common Areas & Apts 0.65 560 2.8 0.66 677 3.2Gas -------- Common Areas Only 0.04 29 0.2 0.10 74 0.3Common Areas & Apts 0.23 195 2.7 0.43 501 2.1Building Services 0.21 179 1.3 0.30 329 1.4Other Operating Costs 0.06 65 0.9 0.16 134 0.6Security 0.06 58 0.1 0.07 67 0.2Grounds Maintenance 0.23 199 1.6 0.07 62 0.3Maintenance & Repairs 0.48 453 2.9 0.97 801 2.5Painting/Decorating 0.27 258 1.5 0.23 191 0.7Real Estate Taxes 1.60 1,424 8.1 2.50 1,831 8.6Other Tax/Fee/Permit Costs 0.04 38 0.3 0.07 72 0.3Insurance 0.26 213 1.3 0.28 246 0.9Recreational/Amenities Costs 0.06 47 0.2 0.04 38 0.2Other Payroll 0.99 891 4.9 0.97 968 4.0Total Operating Expenses 6.92 6,110 35.7 9.45 8,477 33.2Net Operating Income 10.85 9,970 55.9 19.29 16,412 61.6

Notes:

- Payroll expenses: data contributors were instructed to INCLUDE related payroll expenses when reporting the following expense categories: Other Administrative Costs, Security, Grounds Maintenance, Painting and Decorating (Interior Only), and Recreational Amenities. All remaining payroll expenses, including the amount paid to janitors, maids, and interior maintenance personnel, were to be reported in the expense category "Other Payroll". The IREM publication also provides a line item "Payroll Recap" recapitulating [that is, cumulating] all the various PAYROLL expenses reported in any of those categories. - The operating expenses reported by IREM do NOT reflect such items as ground rent, mortgage interest, amortization, depreciation, income taxes, or capital expenditures for alterations, improvements, or remodeling of occupied or public areas -- and so the "Net Operating Income" amounts shown in the tables are what is sometimes termed EBITDAR income.

"Common Areas Only" represents the median cost of that utility in the common areas of the building (and not its use, if any, in the residential units)."Common Areas & Apts." provides the median cost of the utility in the common areas and in the individual apartments. This row also includes any buildings where the utility is used only in the apartments but is still paid for by the management.

Source : Institute of Real Estate Management, Conventional Apartments: Income/Expense Analysis, 2013 edition.

- For utilities: Electricity and Gas expense categories are not to include any heating expense, according to instructions to respondents.

- Reflects operating data for the year ending 2013. - Because data are medians, detailed amounts may not add precisely to totals, and percentages may not add to 100. - Data exclude federally assisted apartment buildings.

TABLE C

256,956

9124,382

MARKET-RATE RENTAL PROPERTIES IN WASHINGTON MSAGARDEN ELEVATOR

MEDIAN INCOME AND EXPENSE DATA COMPARISON BY PROPERTY TYPE:


SPONSORED BY BOZZUTOMARKET-RATE RENTAL PROPERTIES IN THE UNITED STATES

Total Number of PropertiesTotal Number of Units

% OF % OFREVENUE $/SF $/UNIT GPI $/SF $/UNIT GPI Rents -- Apartments 11.08 9,773 93.9 17.48 13,882 93.4Rents -- Garage/Parking 0.12 108 0.9 0.51 463 2.3Rents -- Storage/Offices 0.08 81 0.8 0.42 346 1.7Gross Possible Rents 11.13 9,797 94.4 17.88 14,484 96.1Concessions 0.10 92 0.8 0.09 72 0.5Vacancies/Rent Loss 0.77 687 6.2 0.93 790 4.9Total Rents Collected 9.98 8,813 86 16.32 12,968 88.7Other Income 0.72 643 5.7 0.8 608 4.2Gross Possible Income ("GPI") 11.94 10,523 100 18.72 15,420 100.0Total Collections 10.78 9,497 92.4 17.05 14,164 94.8EXPENSESManagement Fee 0.42 383 3.7 0.67 580 3.8Other Administrative 0.66 592 5.3 1.10 950 6.1Supplies 0.03 21 0.2 0.08 58 0.4Heating Fuel -- Common Areas Only 0.05 47 0.5 0.13 107 0.6Common Areas & Apts 0.30 259 2.5 0.41 348 2.8Electricity -- Common Areas Only 0.15 133 1.2 0.34 273 1.7Common Areas & Apts 0.22 185 2.0 0.75 634 4.1Water/Sewer -- Common Areas Only 0.39 358 2.7 0.39 364 1.8Common Areas & Apts 0.50 446 4.3 0.44 353 3.0Gas--------Common Areas Only 0.03 25 0.2 0.11 88 0.5Common Areas & Apts 0.13 101 1.1 0.20 123 1.0Building Services 0.12 108 1.1 0.18 150 1.1Other Operating Costs 0.06 52 0.5 0.10 99 0.5Security 0.04 33 0.3 0.08 61 0.5Grounds Maintenance 0.21 188 1.8 0.14 118 0.8Maintenance & Repairs 0.42 379 3.6 0.61 499 3.4Painting/Decorating 0.18 161 1.5 0.18 148 1.0Real Estate Taxes 0.88 787 7.6 1.43 1,208 7.8Other Tax/Fee/Permit Costs 0.02 15 0.1 0.03 29 0.2Insurance 0.28 250 2.3 0.33 281 1.8Recreational/Amenities Costs 0.02 21 0.2 0.04 35 0.2Other Payroll 0.63 559 5.1 0.88 764 4.7Total Operating Expenses 4.90 4,370 40.4 7.68 6,297 40.3Net Operating Income 5.79 5,189 50.1 9.78 7,649 51.9

Notes:

TABLE DMEDIAN INCOME AND EXPENSE DATA COMPARISON BY PROPERTY TYPE:

- For utilities: Electricity and Gas expense categories are not to include any heating expense, according to instructions to respondents.

"Common Areas Only" represents the median cost of that utility in the common areas of the building (and not its use, if any, in the residential units)."Common Areas & Apts." provides the median cost of the utility in the common areas and in the individual apartments. This row also includes any buildings where the utility is used only in the apartments but is still paid for by the management.

- Reflects operating data for the year ending 2013. - Because data are medians, detailed amounts may not add precisely to totals, and percentages may not add to 100.

MARKET-RATE RENTAL PROPERTIES IN THE UNITED STATESGARDEN ELEVATOR

- Data exclude federally assisted apartment buildings.

2,461 22759,898532,883

- The operating expenses reported by IREM do NOT reflect such items as ground rent, mortgage interest, amortization, depreciation, income taxes, or capital expenditures for alterations, improvements, or remodeling of occupied or public areas -- and so the "Net Operating Income" amounts shown in the tables are what is sometimes termed EBITDAR income.

- Payroll expenses: data contributors were instructed to INCLUDE related payroll expenses when reporting the following expense categories: Other Administrative Costs, Security, Grounds Maintenance, Painting and Decorating (Interior Only), and Recreational Amenities. All remaining payroll expenses, including the amount paid to janitors, maids, and interior maintenance personnel, were to be reported in the expense category "Other Payroll". The IREM publication also provides a line item "Payroll Recap" recapitulating [that is, cumulating] all the various PAYROLL expenses reported in any of those categories.



The phrase Mind the Gap was first introduced in 19.69. on the

London Underground, warning passengers to take caution

while stepping onto the station platform . It has become

a stock phrase having little to do with subway safety and

more about generation, gender and class divide . And it may

very well serve as a fair warning about the cost of continued

gender inequity at the leadership levels of commercial real

estate firms .

Females represent more than 56% of college students today,

even though there are more college-aged males than females .

There are three million more women than men in college and

four million more college educated women than men . Over the

past ten years, the number of women holding undergraduate

degrees increased from 28.% to 41% . In addition, women are

finding it increasingly harder to find a compatible mate,

leading to the lowest fertility numbers in US history . Combine

this with a 20% - 25% divorce rate and we have more single

women in this country than ever before .

Our research shows that 53% of our Millennial renters in

Washington DC are female . And we expect that number to

grow . Single women are a growing demographic group of

single mothers preferring to live closer to cities in full amenity

rental communities .

Women make or influence 9.1% of all home buying decisions .

They guide 9.4% of all home-furnishing purchases . Yet these

companies are largely run by groups of men . Women account

for $7 trillion in consumer and business spending in the US .

Over the next decade, they will control two-thirds of consumer

wealth . Women make or influence 8.5% of all purchasing

decisions, yet 9.7% of advertising agency creative directors

are male . It’s not surprising that 9.1% of women claim that

advertisers don’t understand them . And that is bad for any

business . Simply put – it’s time to mind the gap .

There is a tremendous amount of research supported by top

consulting firms and world class universities that clearly

demonstrate the economic benefit associated with gender-

inclusive and balanced teams . The case has been made time

and again . Research has proven that gender diverse teams

and leadership make better products, companies, families,

communities and countries .

Meanwhile, in this country, the debate is focused on how to

stem the tide of women leaving corporate America . Only 5% of

Fortune 500 companies are led by women .

But that’s not so easy . Despite decades of good intentions and

varied levels of diversity efforts, women in commercial real

estate have not achieved equal access to C-suite positions .

Nor have they achieved equal pay for equal work .

There are many reasons that can be attributed to this gender

inequity; unconscious bias, lack of sponsorship, child rearing

conflicts, a confidence gap among women and an overall

lack of cultural bias that supports gender parity at the more

senior levels . But what often goes unnoticed is what is lost

when women are not at the table . And we can start with

financial performance .

A study by Ferguson Partners found that over a five-year

horizon, female representation was “far and away the

characteristic that most likely correlated with economic

performance .” In this same study, 44% of REIT boards did not

have a single female board member . In real estate, as in the

broader economy, we have a long way to go .

As an industry, we should focus on creating company cultures

that value self-assured women and sponsor talent in a

productive and supportive way . But that alone won’t close

the divide . We must continue to address the realities and the

challenges that working parents face – regardless of gender .

For starters, we need continued focus and implementation

of policies such as flexible work schedules, family-friendly

benefits, and equal pay for equal work . These efforts can

demonstrate that we are mindful of the gap . The results will

speak volumes .

* * * *

Julie A. Smith is President of Bozzuto Management Company

MIND THE GAPBy Julie Smith, President, Bozzuto Management Companyjsmith@bozzuto .com

MIND THE GAP

3WASHINGTON

STATISTICAL

REPORT



GEOGRAPHIC AREA

NORTHERN VIRGINIA SUBURBAN MARYLAND THE DISTRICT WASHINGTON METRO AREA

CLASS A APARTMENTS VACANCY EFF RENT VACANCY EFF RENT VACANCY EFF RENT VACANCY EFF RENT

Low-Rise 5.0% $1,625 4.9% $1,625 NA NA 5.0% $1,625

Mid & High-Rise 4.7% $2,220 3.7% $2,123 3.5% $2,570 4.1% $2,337

Total Class A 4.9% $1,840 4.6% $1,735 3.5% $2,570 4.6% $1,914

Comparison at 9/13 3.8% $1,808 4.6% $1,716 2.2% $2,574 3.9% $1,872

Comparison at 9/09 4.2% $1,583 5.2% $1,494 2.2% $2,331 4.4% $1,623

CLASS B APARTMENTS VACANCY EFF RENT VACANCY EFF RENT VACANCY EFF RENT VACANCY EFF RENT

Low-Rise 3.1% $1,544 2.5% $1,379 NA NA 2.8% $1,463

Mid & High-Rise 4.1% $1,732 4.5% $1,724 2.3% $1,995 3.9% $1,777

Total Class B 3.5% $1,626 2.9% $1,448 2.3% $1,995 3.2% $1,584

Comparison at 9/13 4.4% $1,617 4.8% $1,442 1.5% $1,939 4.4% $1,573

Comparison at 9/09 4.4% $1,421 7.5% $1,289 6.3% $1,736 5.6% $1,395

CLASS A & B APARTMENTS VACANCY EFF RENT VACANCY EFF RENT VACANCY EFF RENT VACANCY EFF RENT

Total Class A and B 4.3% $1,752 3.9% $1,615 3.2% $2,435 4.1% $1,784

Comparison at 9/13 4.1% $1,724 4.7% $1,596 2.0% $2,394 4.1% $1,746

Comparison at 9/09 4.3% $1,507 6.2% $1,403 3.7% $2,119 4.9% $1,520

Source: Compiled by Delta Associates, 500 Montgomery St., Suite 600, Alexandria, Virginia 22314Phone: (703) 836-5700. Last Update: September 2014.

Third Quarter 2014Washington Metropolitan Area | Investment Grade Class A and Class B Apartments

ESTIMATED EFFECTIVE RENT AND STABILIZED VACANCY RATE FOR INVESTMENT GRADE CLASS A AND CLASS B APARTMENTSTABLE 3.1

WASHINGTON STATISTICAL REPORT



GEOGRAPHIC AREA

NORTHERN VIRGINIASUBURBAN MARYLAND

THE DISTRICTWASHINGTON METRO AREA

CLASS A APARTMENTS

Rent Increase/Annum Since September 2013 ¹

Low-Rise

Mid & High-Rise

Total Class A

Rent Increase/Annum Since September 2009

Total Class A

CLASS B APARTMENTS


Low-Rise

Mid & High-Rise

Total Class B


Total Class B

CLASS A & B APARTMENTS


Low-Rise

Mid & High-Rise

Total Class A and B


Total Class A and B

1 Same-store rent comparison.Source: Compiled by Delta Associates, 500 Montgomery St., Suite 600, Alexandria, Virginia 22314Phone: (703) 836-5700. Last Update: September 2014.

TABLE 3.1.1RENT INCREASE FOR INVESTMENT GRADE CLASS A AND CLASS B APARTMENTS

Washington Metropolitan Area | Investment Grade Class A and Class B ApartmentsThird Quarter 2014

1.0% 1.0% NA 1.0%

-0.1% 1.2% 2.6% 1.1%

0.6% 1.1% 2.6% 1.1%

1.8% 1.1% NA 1.5%

-0.4% -1.8% 3.0% 0.0%

0.7% 0.9% 2.7% 1.0%

0.9% 0.5% 3.0% 0.9%

1.3% 1.1% NA 1.2%

3.1% 3.0% 2.0% 3.4%

3.1% 2.9% 2.8% 3.3%

2.7% 2.3% 2.8% 2.6%

-0.2% 0.0% 2.7% 0.7%




TABLE 3.2KEY MARKET INDICATORS FOR CLASS A RENTAL LOW-RISE APARTMENTS 1

Summary: Washington Metropolitan Area

Number of Units Surveyed 19,803 16,876 36,679 16,012 14,507 30,519 67,198

Rent Levels (Avg. of All Unit Sizes)

Face Rent $1,779 $1,500 $1,651 $1,692 $1,604 $1,650 $1,651

Concession as a % of Face Rents 1.6% 1.6% 1.6% 1.0% 2.1% 1.5% 1.6%

Effective Rent $1,752 $1,475 $1,625 $1,675 $1,571 $1,625 $1,625

Effective Rent per Square Foot $1.81 $1.49 $1.67 $1.68 $1.54 $1.61 $1.64

Per Annum Effective Rent Increase

- Since 1998 3.6% 4.2% 3.9% 3.6% 4.1% 3.8% 3.8%

- Since 09/30/09 3.2% 3.9% 3.6% 2.8% 3.3% 3.0% 3.3%

- Since 09/30/13 ² -0.4% 2.6% 1.0% 1.1% 1.0% 1.0% 1.0%

Vacancy September 2014

Overall 3 6.8% 10.2% 8.4% 7.3% 8.9% 8.1% 8.2%

Stabilized 4 5.1% 5.0% 5.0% 4.9% 4.8% 4.9% 5.0%


Overall 3 5.0% 10.1% 7.3% 12.4% 13.3% 12.8% 9.5%

Stabilized 4 3.3% 4.1% 3.6% 4.6% 4.3% 4.5% 4.0%

Supply Projections

2,864 5,369 8,233 11,266 5,803 17,069 25,302

For Comparison

at 9/30/2013 3,066 4,696 7,762 8,898 5,615 14,513 22,275

1 Includes walk-up and elevator-served apartments of one to four stories.2 Excludes projects that were not actively marketing at date of previous survey, i.e. same project/unit price comparison.3 Includes actively marketing projects.4 Excludes actively marketing projects.5 See list of under construction and planned projects on tables 3.13 through 3.18. Under construction includes unleased units in projects not yet stabilized. Does not account for attrition.


Number of Market Rate Units Under Construction and Available Plus Planned That Are Likely to Be Delivered in the Next 36 Months 5

Third Quarter 2014GEOGRAPHIC AREA

MARKET INDICATOR METRO-WIDE TOTAL/AVERAGENORTHERN VIRGINIA SUBMARKETS SUBURBAN MARYLAND SUBMARKETS

CLOSE IN OUTER TOTAL CLOSE IN OUTER TOTAL

Table 3.2 3Q 2014 14206 A Tables.xlsx X:\DELTA\OLDSERV\Open Projects\14206\3rdQtr2014\Class A Report Work Files\3Q 2014 14206 A Tables.xlsx





Selected Submarkets | Close-In Northern Virginia

Number of Units Surveyed 5,595 1,279 1,020 3,735 5,450 2,724 19,803 16,876 36,679Rent Levels

Face Rent $1,919 $1,886 $1,954 $1,660 $1,654 $1,792 $1,779 $1,500 $1,651Concession as a % of Face Rents 2.0% 0.7% 0.0% 0.1% 3.4% 0.0% 1.6% 1.6% 1.6%Effective Rent $1,880 $1,873 $1,954 $1,658 $1,598 $1,792 $1,752 $1,475 $1,625Effective Rent per Square Foot $1.98 $2.05 $1.98 $1.73 $1.59 $1.87 $1.81 $1.49 $1.67Per Annum Effective Rent Increase

- Since 1998 4.1% 3.5% 4.2% 3.7% 2.8% NA 3.6% 4.2% 3.9%- Since 09/30/09 3.7% 4.6% 3.2% 2.7% 2.9% NA 3.2% 3.9% 3.6%- Since 09/30/13 ³ -0.5% 7.0% 0.8% -1.9% -1.8% 0.4% -0.4% 2.6% 1.0%

Vacancy September 2014Overall 4 5.7% 6.9% 2.8% 5.3% 6.8% 12.5% 6.8% 10.2% 8.4%Stabilized 5 5.1% 6.9% 2.8% 5.3% 4.8% 5.2% 5.1% 5.0% 5.0%

Vacancy September 2013Overall 4 1.9% 7.0% 2.1% 2.6% 8.9% 6.8% 5.0% 10.1% 7.3%Stabilized 5 1.9% 7.0% 2.1% 1.8% 4.8% 3.6% 3.3% 4.1% 3.6%

Absorption TrendsMonthly Absorption Pace Per Project

17 12 14 13 19 14 -- -- --

(2014) (2010) (2008) (2014) (2012) (2012) -- -- --

Supply Projections

203 325 461 859 116 900 2,864 5,369 8,233

For Comparison at 9/30/2013 407 350 461 749 175 924 3,066 4,696 7,762

1 Includes walk-up and elevator-served apartments of one to four stories.2 May include portions of Fairfax County.3 Excludes projects that were not actively marketing at date of previous survey, i.e. same project/unit price comparison.4 Includes actively marketing projects.5 Excludes actively marketing projects.6 See list of under construction and planned projects on tables 3.13 through 3.18. Under construction includes unleased units in projects not yet stabilized. Does not account for attrition.Source: Compiled by Delta Associates, 500 Montgomery St., Suite 600, Alexandria, Virginia 22314. Phone: (703) 836-5700. Last Update: September 2014.

for Most Recently Delivered Market-Rate Projects

# of Market Rate Units Under Construction & Available Plus Planned That are Likely to Be Delivered in the Next 36 Months6

(Year of Most Recently Marketed Project)

SUBMARKETThird Quarter 2014

ALEXANDRIA/ 2

ARLINGTONTYSONS CORNER

VIENNA/ MERRIFIELD

FAIR OAKSRESTON/ HERNDON

S AND E FAIRFAX

SUBTOTAL - CLOSE-IN SUBMARKETS

SUBTOTAL- OUTER SUBMARKETS

OVERALL TOTAL/WEIGHTED

AVERAGE MARKET INDICATOR




Number of Units Surveyed 6,096 2,794 2,701 2,780 2,505 16,876 19,803 36,679

Rent LevelsFace Rent $1,570 $1,513 $1,562 $1,465 $1,287 $1,500 $1,779 $1,651Concession as a % of Face Rents 1.5% 0.5% 3.3% 1.9% 1.2% 1.6% 1.6% 1.6%Effective Rent $1,547 $1,505 $1,511 $1,437 $1,272 $1,475 $1,752 $1,625Effective Rent per Square Foot $1.53 $1.66 $1.58 $1.39 $1.23 $1.49 $1.81 $1.67

Per Annum Effective Rent Increase- Since 1998 3.7% 3.8% 4.5% 4.2% 5.3% 4.2% 3.6% 3.9%- Since 09/30/09 3.2% 5.5% 1.5% 6.1% 3.8% 3.9% 3.2% 3.6%- Since 09/30/13 ² -0.2% 4.5% 4.5% 2.1% 6.1% 2.6% -0.4% 1.0%


Overall 3 8.1% 4.9% 30.0% 4.4% 6.5% 10.2% 6.8% 8.4%

Stabilized 4 4.8% 4.9% 5.3% 4.4% 6.2% 5.0% 5.1% 5.0%


Overall 3 12.0% 1.7% 18.4% 10.6% 8.5% 10.1% 5.0% 7.3%

Stabilized 4 4.1% 1.7% 1.9% 7.1% 4.6% 4.1% 3.3% 3.6%


for Most Recently Delivered Market-Rate Projects 27 16 21 8 23 -- -- --(Year of Most Recently Marketed Project) (2012) (2007) (2014) (2012) (2013) -- -- --

Supply Projections# of Market Rate Units Under Construction & Available

Plus Planned That Are Likely to Be Delivered

in the Next 36 Months 5 1,364 0 1,829 1,134 1,042 5,369 2,864 8,233

For Comparison

at 9/30/2013 1,928 0 2,053 609 106 4,696 3,066 7,762

1 Includes walk-up and elevator-served apartments of one to four stories.2 Excludes projects that were not actively marketing at date of previous survey, i.e. same project/unit price comparison.3 Includes actively marketing projects.4 Excludes actively marketing projects.5 See list of under construction and planned projects on tables 3.13 through 3.18. Under construction includes unleased units in projects not yet stabilized. Does not account for attrition.

Source: Compiled by Delta Associates, 500 Montgomery St., Suite 600, Alexandria, Virginia 22314

Phone: (703) 836-5700. Last Update: September 2014.

TABLE 3.4

MARKET INDICATOR FREDERICKS-BURG

WEST PRINCE

WILLIAM COUNTY

EAST PRINCE WILLIAM COUNTY

CENTREVILLEEASTERN

LOUDOUN COUNTY


AVERAGE

SUBTOTAL - CLOSE-IN

SUBMARKETS

SUBTOTAL- OUTER

SUBMARKETS

SUBMARKET

KEY MARKET INDICATORS FOR CLASS A RENTAL LOW-RISE APARTMENTS 1

Selected Submarkets | Outer Northern VirginiaThird Quarter 2014

Table 3.4 3Q 2014 14206 A Tables.xlsxX:\DELTA\OLDSERV\Open Projects\14206\3rdQtr2014\Class A Report Work Files\3Q 2014 14206 A Tables.xlsx





Selected Submarkets | Close-In Suburban Maryland



- Since 1998 2.9% 3.2% 3.9% 3.5% 4.1% 3.7% 3.6% 4.1% 3.8%- Since 09/30/09 2.7% 3.0% 2.9% 1.8% 3.4% 2.0% 2.8% 3.3% 3.0%- Since 09/30/13 ² 2.4% 0.7% -2.7% -1.8% 3.6% 0.1% 1.1% 1.0% 1.0%


Overall 3 5.2% 5.4% 9.5% 4.8% 11.5% 4.0% 7.3% 8.9% 8.1%

Stabilized 4 5.2% 4.5% 7.9% 4.8% 4.2% 4.0% 4.9% 4.8% 4.9%Vacancy September 2013

Overall 3 6.5% 17.6% 11.9% 2.0% 21.9% 6.3% 12.4% 13.3% 12.8%

Stabilized 4 5.5% 4.2% 3.4% 2.0% 4.5% 6.3% 4.6% 4.3% 4.5%Absorption Trends

Monthly Absorption Pace Per Project

for Most Recently Delivered Market-Rate Projects 14 15 16 20 28 17 -- -- --(Year of Most Recently Marketed Project) (2012) (2013) (2012) (1992) (2014) (2011) -- -- --



in the Next 36 Months 5 1,770 274 710 0 6,274 2,238 11,266 5,803 17,069

For Comparison

at 9/30/2013 1,564 1,024 980 0 3,825 1,505 8,898 5,615 14,513

1 Includes walk-up and elevator-served apartments of one to four stories.2 Excludes projects that were not actively marketing at date of previous survey, i.e. same project/unit price comparison.3 Includes actively marketing projects.4 Excludes actively marketing projects.5 See list of under construction and planned projects on tables 3.13 through 3.18. Under construction includes unleased units in projects not yet stabilized. Does not account for attrition.Source: Compiled by Delta Associates, 500 Montgomery St., Suite 600, Alexandria, Virginia 22314


SUBMARKET

Third Quarter 2014

MARKET INDICATOR S PRINCE GEORGE'S COUNTY

N PRINCE GEORGE'S COUNTY

BURTONS- VILLE

GERMAN- TOWN

GAITHERS- BURG

ROCKVILLE / N. BETHESDA


AVERAGE

SUBTOTAL- OUTER

SUBMARKETS

SUBTOTAL- CLOSE-IN

SUBMARKETS






Selected Submarkets | Outer Suburban Maryland



- Since 1998 3.4% 4.1% 4.2% 4.7% 4.3% 3.5% 4.1% 3.6% 3.8%- Since 09/30/09 4.7% 2.3% 3.5% 5.2% 2.5% 2.1% 3.3% 2.8% 3.0%- Since 09/30/13 ³ 1.4% -4.2% 2.4% 6.0% -0.5% 5.0% 1.0% 1.1% 1.0%


Overall 3 9.2% 12.8% 9.8% 5.9% 3.0% 3.3% 8.9% 7.3% 8.1%

Stabilized 4 4.8% 4.9% 5.8% 4.6% 3.0% 3.3% 4.8% 4.9% 4.9%Vacancy September 2013

Overall 3 6.9% 13.8% 18.6% 16.0% 4.9% 6.0% 13.3% 12.4% 12.8%

Stabilized 4 2.5% 7.1% 2.7% 3.8% 4.9% 6.0% 4.3% 4.6% 4.5%Absorption Trends


for Most Recently Delivered Market-Rate Projects 15 22 24 13 11 17 -- -- --(Year of Most Recently Marketed Project) (2014) (2014) (2013) (2014) (2012) (2012) -- -- --



in the Next 36 Months 5 559 3,437 1,206 388 213 0 5,803 11,266 17,069

For Comparison

at 9/30/2013 194 2,836 1,845 515 213 12 5,615 8,898 14,513

1 Includes walk-up and elevator-served apartments of one to four stories.2 Excludes projects that were not actively marketing at date of previous survey, i.e. same project/unit price comparison.3 Includes actively marketing projects.4 Excludes actively marketing projects.5 See list of under construction and planned projects on tables 3.13 through 3.18. Under construction includes unleased units in projects not yet stabilized. Does not account for attrition.Source: Compiled by Delta Associates, 500 Montgomery St., Suite 600, Alexandria, Virginia 22314


SUBMARKETThird Quarter 2014

MARKET INDICATOROVERALL

TOTAL/WEIGHTED AVERAGE

SUBTOTAL- CLOSE-IN

SUBMARKETS

SUBTOTAL- OUTER

SUBMARKETSFREDERICKHOWARD COUNTY/ COLUMBIA

N ANNE ARUNDEL COUNTY

ANNAPOLISCHARLES COUNTY

ST. MARY'S COUNTY





Number of Units Surveyed 20,872 8,579 16,518 45,969

Rent Levels ( Avg. of All Unit Sizes)

Face Rent $2,319 $2,181 $2,613 $2,399

Concession as a % of Face Rents 4.3% 2.7% 1.6% 2.4%

Effective Rent $2,220 $2,123 $2,570 $2,337

Effective Rent per Square Foot $2.50 $2.34 $3.15 $2.66


- Since 1998 4.4% 2.9% 2.6% 3.5%

- Since 09/30/09 1.6% 1.0% 1.4% 1.4%

- Since 09/30/13 ¹ -0.1% 1.2% 2.6% 1.1%


Overall 2 14.9% 17.1% 11.2% 14.0%

Stabilized 3 4.7% 3.7% 3.5% 4.1%


Overall 2 6.9% 6.6% 10.3% 8.1%

Stabilized 3 4.3% 5.0% 2.5% 3.8%

Supply Projections# of Market Rate Units Under Construction and Available

Plus Planned Which Are Likely to be Delivered

in the Next 36 Months 4 16,412 9,397 16,997 43,662

For Comparison

at 9/30/2013 16,346 8,369 14,289 39,004

1 Excludes projects that were not actively marketing at date of previous survey, i.e. same project/unit price comparison.2 Includes actively marketing projects.3 Excludes actively marketing projects.4 See list of under construction and planned projects on tables 3.13 through 3.20. Under construction includes unleased units in projects not yet stabilized. Does not account for attrition.



TABLE 3.7

GEOGRAPHIC AREA

KEY MARKET INDICATORS FOR CLASS A RENTAL HIGH-RISE APARTMENTS Summary: Washington Metropolitan Area

Third Quarter 2014

MARKET INDICATORTOTALTHE DISTRICT

SUBURBAN MARYLAND

NORTHERN VIRGINIA

Table 3.7 3Q 2014 14206 A Tables.xlsx X:\DELTA\OLDSERV\Open Projects\14206\3rdQtr2014\Class A Report Work Files\3Q 2014 14206 A Tables.xlsx




TABLE 3.8KEY MARKET INDICATORS FOR CLASS A RENTAL HIGH-RISE APARTMENTS

Selected Submarkets | Northern Virginia

Number of Units Surveyed 3,851 7,414 3,791 1,941 3,875 20,872

Rent Levels

Face Rent $2,183 $2,430 $2,313 $2,034 $2,390 $2,319

Concession as a % of Face Rents 8.0% 4.1% 1.6% 2.1% 4.6% 4.3%

Effective Rent $2,009 $2,330 $2,275 $1,992 $2,279 $2,220

Effective Rent per Square Foot $2.25 $2.73 $2.54 $2.13 $2.45 $2.50


- Since 1998 4.8% 4.5% 3.8% NA NA 4.4%

- Since 09/30/09 1.1% 2.0% 1.4% NA NA 1.6%

- Since 09/30/13 ² 3.1% -1.5% 3.6% -6.5% -1.0% -0.1%


Overall 3 18.2% 15.5% 5.2% 3.6% 25.5% 14.9%

Stabilized 4 5.6% 4.1% 5.2% 3.6% 5.5% 4.7%


Overall 3 7.6% 6.9% 4.8% 2.7% 12.6% 6.9%

Stabilized 4 6.8% 3.6% 4.8% 2.7% 3.2% 4.3%

Absorption Trends


for Most Recently Delivered Market-Rate Projects 31 47 12 20 43 --

(Year of Most Recently Marketed Project) (2014) (2014) (2010) (2011) (2014) --

Supply Projections

# of Market Rate Units Under Construction & Available


in the Next 36 Months 5 3,559 2,545 1,997 682 7,629 16,412

For Comparison

at 9/30/2013 4,040 3,365 1,046 257 7,638 16,346

1 Includes cities of Fairfax and Falls Church.2 Excludes projects that were not actively marketing at date of previous survey, i.e. same project/unit price comparison.3 Includes actively marketing projects.4 Excludes actively marketing projects.5 See list of under construction and planned projects on tables 3.13 through 3.14. Under construction includes unleased units in projects not yet stabilized. Does not account for attrition.Source: Compiled by Delta Associates, 500 Montgomery St., Suite 600, Alexandria, Virginia 22314


Third Quarter 2014SUBMARKET

MARKET INDICATOROVERALL TOTAL/WEIGHTED

AVERAGEALEXANDRIA

ROSSLYN/ BALLSTON

CORRIDOR OF ARLINGTON

CRYSTAL CITY/ PENTAGON CITY

SOUTH ARLINGTON N & W FAIRFAX 1

Table 3.8 3Q 2014 14206 A Tables.xlsx

X:\DELTA\OLDSERV\Open Projects\14206\3rdQtr2014\Class A Report Work Files\3Q 2014 14206 A Tables.xlsx





Selected Submarkets | Suburban MarylandThird Quarter 2014

SUBMARKET


Rent Levels

Face Rent $2,567 $2,147 $1,991 $2,181


Effective Rent $2,556 $2,132 $1,867 $2,123



- Since 1998 ¹ 3.9% 3.2% 2.0% 2.9%

- Since 09/30/09 2.9% -0.7% 1.3% 1.0%

- Since 09/30/13 ² -2.9% 2.6% 2.3% 1.2%


Overall 3 6.7% 12.9% 26.7% 17.1%

Stabilized 4 4.1% 2.4% 5.0% 3.7%


Overall 3 5.2% 6.1% 8.3% 6.6%

Stabilized 4 5.2% 6.1% 3.1% 5.0%

Absorption Trends


for Most Recently Delivered Market-Rate Projects 16 39 20 --

(Year of Most Recently Marketed Project) (2013) (2014) (2014) --

Supply Projections



in the Next 36 Months 5 1,949 4,725 2,723 9,397

For Comparison

at 9/30/2013 1,884 3,569 2,916 8,369

1 Average annual rent increase in Silver Spring/Wheaton is from 2004.2 Excludes projects that were not actively marketing at date of previous survey, i.e. same project/unit price comparison.3 Includes actively marketing projects.4 Excludes actively marketing projects.5 See list of under construction and planned projects on tables 3.16 and 3.17. Does not account for attrition.Source: Compiled by Delta Associates, 500 Montgomery St., Suite 600, Alexandria, Virginia 22314


MARKET INDICATORBETHESDA

N BETHESDA/ ROCKVILLE

SILVER SPRING/ WHEATON

SUBURBAN MARYLAND TOTAL/WEIGHTED AVERAGE






Selected Submarkets | The Distrct

SUBMARKET

Number of Units Surveyed 1,319 5,945 2,424 3,866 1,929 1,035 16,518

Rent Levels

Face Rent $2,964 $2,871 $2,664 $2,362 $2,267 $2,139 $2,613

Concession as a % of Face Rents 1.2% 1.3% 2.6% 2.3% 1.3% 0.0% 1.6%

Effective Rent $2,928 $2,834 $2,596 $2,308 $2,237 $2,139 $2,570

Effective Rent per Square Foot $3.19 $3.34 $3.40 $2.76 $2.70 $2.58 $3.15


- Since 1998 5.2% 2.0% NA NA NA NA 2.6%

- Since 09/30/09 4.2% 2.3% 2.4% -4.4% 4.8% 5.5% 1.4%

- Since 09/30/13 ¹ 0.3% -0.2% 4.3% 6.4% -0.1% 7.7% 2.6%


Overall 2 18.4% 6.4% 8.8% 17.4% 6.0% 21.7% 11.2%

Stabilized 3 3.2% 3.1% 3.9% 2.1% 5.0% 6.4% 3.5%


Overall 2 2.2% 1.6% 23.9% 19.2% 15.3% 4.4% 10.3%

Stabilized 3 2.2% 1.6% 3.9% 2.9% 2.6% 4.4% 2.5%

Absorption Trends


for Most Recently Delivered Market-Rate Projects 9 24 33 49 9 26 --

(Year of Most Recently Marketed Project) (2014) (2013) (2014) (2014) (2014) (2014) --

Supply Projections


Plus Planned Which Are Likely to Be Delivered

in the Next 36 Months 4 1,074 1,875 1,898 4,236 5,126 1,972 16,997

For Comparison

at 9/30/2013 687 1,780 2,580 3,286 3,610 1,426 14,289

1 Excludes projects that were not actively marketing at date of previous survey, i.e. same project/unit price comparison.2 Includes actively marketing projects.3 Excludes actively marketing projects.4 See list of under construction and planned projects on tables 3.19 and 3.20. Does not account for attrition. Substate totals may include some projects that do not fall into the identified submarkets.



Third Quarter 2014

MARKET INDICATOROVERALL

TOTAL/WEIGHTED AVERAGEUPPER NW CENTRAL COLUMBIA

HEIGHTS/SHAW NOMA/

H STREET CAPITOL HILL/ RIVERFRONT

NORTHEAST

Table 3.10 3Q 2014 14206 A Tables.xlsx

X:\DELTA\OLDSERV\Open Projects\14206\3rdQtr2014\Class A Report Work Files\3Q 2014 14206 A Tables.xlsx



SPONSORED BY BOZZUTOWASHINGTON STATISTICAL REPORT

HIDE

Q4' 13 Q1' 14 Q2' 14 Q3' 14

LOW-RISE APARTMENTS

The Elms at Clarksburg Village 336 9/12 10/12 314 10 1 14 7 13 1%Clarksburg, MarylandBainbridge River Oaks 294 10/12 1/13 262 16 6 3 (5) 12 3%Woodbridge, VirginiaHaven at Celebrate Virginia 251 1/13 2/13 238 17 (3) 2 3 12 9%Fredericksburg, VirginiaFlats 170 at Academy Yard 369 4/13 6/13 271 (4) 27 32 10 16 0%Odenton, MarylandThe Mark at Brickyard 433 5/13 8/13 272 11 18 33 4 17 9%Laurel, MarylandParamount at Spectrum 210 6/13 6/13 195 14 9 17 6 13 0%Gaithersburg, MarylandElan Potomac Heights 288 8/13 11/13 97 0 2 12 13 7 12%Woodbridge, VirginiaAtley on the Greenway 458 8/13 8/13 342 NA 18 37 26 26 9%Ashburn, VirginiaAvalon Arlington North 227 9/13 9/13 205 13 10 25 21 17 0%Arlington, VirginiaHaven at Market Square 206 11/13 12/13 145 12 11 17 16 15 9%Frederick, MarylandHaven at Fortuna Village 250 12/13 1/14 116 NA 4 24 11 13 8%Dumfries, VirginiaMillstone at Kingsview 132 1/14 2/14 101 NA 20 10 10 13 8%Germantown, MarylandParagon at Columbia Overlook 320 1/14 4/14 173 NA 3 19 37 22 7%Columbia, Maryland3350 at Alterra 283 2/14 5/14 195 NA NA NA 28 28 0%Hyattsville, MarylandCreekside Village 208 3/14 3/14 120 NA NA -- 20 20 0%Glen Burnie, Maryland 2/

Prospect Hall Apartments 376 4/14 7/14 39 NA NA 3 10 8 NAFrederick, MarylandKensington Place - Phase I 129 6/14 8/14 46 NA NA NA 15 15 17%Woodbridge, Virginia

Icon at Dulles 448 9/12 9/12 332 0 (2) 11 9 14 12%Herndon, VirgniaTrilogy NoMa 555 9/12 9/12 530 18 11 38 23 22 8%Washington, DCCitron Apartments 191 1/13 4/13 187 14 6 6 4 10 17%Silver Spring, MarylandThe Beacon at Waugh Chapel 298 1/13 3/13 274 30 18 13 1 14 0%Crofton, MarylandDomain College Park 253 4/13 6/13 250 13 12 11 14 15 0%College Park, MarylandCrosswinds at Annapolis Town Center 215 4/13 7/13 196 13 9 11 15 12 0%Annapolis, Maryland14W 212 4/13 5/13 207 13 9 7 5 12 12%Washington, DCVerde at Howard Square 300 7/13 11/13 255 0 14 28 42 20 8%Elkridge, MarylandAvenir Place at Dunn Loring Metro - Ph. I 229 8/13 9/13 207 29 34 (3) 2 16 NAMerrifield, Virginia1111 Belle Pre 360 8/13 10/13 301 28 12 12 40 23 0%Alexandria, Virginia19Nineteen Clarendon 191 9/13 2/14 159 9 9 12 21 13 17%Arlington, VirginiaAvalon Mosaic 531 12/13 12/13 341 19 -- -- 13 34 0%Merrifield, VirginiaSolaire Wheaton 203 12/13 2/14 -- 19 -- -- -- -- NAWheaton, Maryland 2/

77H 276 1/14 1/14 179 NA 6 31 25 22 6%Washington, DCBainbridge Fair Lakes 150 2/14 4/14 94 NA 6 18 11 13 0%Fairfax, VirginiaCadence at Crown 538 2/14 3/14 176 NA 2 52 6 25 4%Gaithersburg, MarylandBell Del Ray 276 3/14 3/14 145 NA 16 29 17 22 NAAlexandria, VirginiaCornerstone - Monroe St. Market 282 3/14 4/14 120 NA -- 26 14 20 0%Washington, DCTwelve12 182 3/14 5/14 55 NA -- 18 -- 9 NAWashington, DC 2/

PerSei Pike and Rose 149 3/14 6/14 94 NA NA 10 22 16 NANorth Bethesda, MarylandStonebridge Terrace Apartments 302 4/14 4/14 125 NA NA 18 23 21 0%Woodbridge, VirginiaNorthgate 97 4/14 5/14 69 NA NA 24 (1) 12 10%East Falls Church, VirginiaThe Kingsley 175 5/14 6/14 44 NA NA NA 11 11 NAAlexandria, VirginiaThe Louis 268 6/14 6/14 99 NA NA NA 33 33 NAWashington, DCModera Tempo 340 7/14 10/14 17 NA NA NA 9 9 NAAlexandria, VirginiaThe Shelby 210 8/14 9/14 6 NA NA NA 6 6 NAAlexandria, VirginiaTakoma Central 144 8/14 11/14 9 NA NA NA 9 9 NAWashington, DCWindmill Parc - Phase I 214 8/14 12/14 2 NA NA NA 2 2 NADulles, VirginiaThe Swift 200 9/14 9/14 5 NA NA NA 10 10 NAWashington, DC

PROJECT NAME/LOCATIONTOTAL UNITS 1

DATE LEASING BEGAN

DATE OF DELIVERY

UNITS ABSORB.

MONTHLY ABSORPTION PACE PER QUARTER OVERALL LEASE-UP PACE SINCE MARKETING

BEGAN

CURRENT CONCESS. AS A

% OF FACE RENT

MID-RISE APARTMENTS

TABLE 3.11 ABSORPTION SUMMARY | ACTIVELY LEASING CLASS A APARTMENT PROJECTS

WASHINGTON METROPOLITAN AREAThird Quarter 2014



HIDE

Q4' 13 Q1' 14 Q2' 14 Q3' 14PROJECT NAME/LOCATION

TOTAL UNITS 1

DATE LEASING BEGAN

DATE OF DELIVERY

UNITS ABSORB.

MONTHLY ABSORPTION PACE PER QUARTER OVERALL LEASE-UP PACE SINCE MARKETING

BEGAN

CURRENT CONCESS. AS A

% OF FACE RENT

TABLE 3.11 ABSORPTION SUMMARY | ACTIVELY LEASING CLASS A APARTMENT PROJECTS

WASHINGTON METROPOLITAN AREAThird Quarter 2014

Sedona 216 2/13 4/13 200 9 1 (2) 4 13 8%Arlington, VirginiaProsperity Flats 285 3/13 6/13 259 (1) 16 18 13 15 8%Merrifield, VirginiaThe Heritage 183 6/13 8/13 -- NA NA NA NA NA NASilver Spring, Maryland 2/

Slate 203 7/13 8/13 176 3 7 15 21 13 8%Arlington, VirginiaCitymarket at O 400 7/13 1/14 322 6 45 24 42 23 8%Washington, DCThe Exchange at Wheaton Station 425 8/13 10/13 239 22 17 24 12 18 17%Wheaton, MarylandThe Avant at Reston Town Center 315 8/13 11/13 182 (1) 7 19 25 14 8%Reston, VirginiaOvation at Park Crest 300 9/13 4/14 154 3 14 8 26 13 17%McLean, VirginiaThe Apartments at CityCenter 366 9/13 12/13 285 2 21 26 46 24 0%Washington, DCEleven55 Ripley 331 9/13 1/14 163 10 9 13 22 14 17%Silver Spring, MarylandThe View at Liberty Center 256 9/13 1/14 89 NA NA 23 6 7 0%Ballston, VirginiaLyric at 440K 234 11/13 12/13 126 4 7 15 18 13 9%Washington, DCThe Premier 140 11/13 1/14 121 2 10 5 25 12 17%Silver Spring, MarylandGallery Bethesda 198 11/13 1/14 160 NA 12 28 21 16 0%Bethesda, MarylandAscent at Springhill Station 323 11/13 3/14 98 NA 6 10 15 10 17%Tysons Corner, VirginiaCamden NoMa - Ph. I 327 12/13 12/13 254 13 12 50 18 28 7%Washington, DCSky House East 213 12/13 1/14 204 NA 8 25 35 23 0%Washington, DCAurora at North Bethesda Center 298 4/14 7/14 124 NA NA 13 28 21 NANorth Bethesda, MarylandThe Beacon at Clarendon West 187 4/14 8/14 62 NA NA 4 16 10 12%Arlington, VirginiaFenwick 271 4/14 8/14 89 NA NA NA 15 15 0%Silver Spring, MarylandVirginia Square Towers 528 5/14 7/14 188 NA NA 6 61 47 0%Arlington, VirginiaThe George 169 6/14 6/14 26 NA NA -- 9 9 14%Wheaton, MarylandBainbridge Bethesda 170 6/14 7/14 40 NA NA -- 13 13 NABethesda, MarylandDel Ray Tower 333 6/14 8/14 92 NA NA -- 31 31 12%Alexandria, VirginiaHarrison at Reston Town Center 360 6/14 11/14 29 NA NA NA 10 10 NAReston, Virginia2 M Street 308 7/14 8/14 98 NA NA NA 49 49 NAWashington, DCThe Woodley 212 7/14 7/14 18 NA NA NA 9 9 NAWashington, DCElevation at Washington Gateway 367 7/14 8/14 24 NA NA NA 12 12 0%Washington, DCTellus 254 7/14 8/14 12 NA NA NA 6 6 NAArlington, VirginiaMeridian at Mt. Vernon Triangle - Phase II 393 8/14 10/14 4 NA NA NA 4 4 NAWashington, DC

at Third Quarter 2014 21,124 -- 11,447 16 5%at Third Quarter 2013 16,327 -- 8,315 16 7%at Third Quarter 2012 9,461 -- 3,669 17 9%at Third Quarter 2011 5,652 -- 3,552 17 7%at Third Quarter 2010 9,155 -- 5,735 15 13%at Third Quarter 2009 12,109 -- 7,234 15 14%

1 Includes only market-rate units.3 Property did not participate in our suvey. Source: Compiled by Delta Associates, 500 Montgomery St., Suite 600, Alexandria, VA 22314. Phone: (703) 836-5700. Last update: September 2014.

HIGH-RISE APARTMENTS

41%

35%

23%

SUBSTATE SHARE OF ACTIVELY MARKETING CLASS A APARTMENT UNITS Washington Metro | Third Quarter 2014

NoVa

SubMd

The District

10

12

14

16

18

20

0

5,000

10,000

15,000

20,000

25,000

2009 2010 2011 2012 2013 2014

Leas

e-U

p Pa

ce

Apar

tmen

t Uni

ts

UNIT VOLUME AND OVERALL LEASE-UP PACE OF ACTIVELY MARKETING CLASS A APARTMENT PROJECTS Washington Metro | Third Quarter 2009-2014

Units Pace



1. Somerhill Farm Low-Rise 127 7/11 9/06 11/11 24Gainesville, Virginia

2. The Myerton Low-Rise 74 8/11 10/06 5/12 13Arlington, Virginia

3. Foundry Lofts Mid-Rise 136 8/11 11/11 5/12 14Washington, DC

4. Cobblestone Square Low-Rise 306 8/11 11/11 11/12 19Fredericksburg, Virginia

5. Camden Summerfield - Ph. II Low-Rise 187 9/11 9/11 8/12 17Landover, Maryland

6. Gables Centerpointe Low-Rise 103 9/11 10/11 8/12 9Fairfax, Virginia

7. Rhode Island Row Mid-Rise 220 9/11 1/12 12/12 14Washington, DC

8. The Rockwell - Halstead Square - Ph. I Mid-Rise 242 10/11 11/11 5/12 28Vienna, Virginia

9. The Galaxy Mid-Rise 113 11/11 2/12 12/12 8Silver Spring, Maryland

10. Broadstone at Laurel Highlands Low-Rise 289 11/11 11/11 6/13 14Lorton, Virginia

11. vPoint Low-Rise 40 12/11 1/12 5/12 6Arlington, Virginia

12. Yale West High-Rise 216 12/11 1/12 8/13 10Washington, DC

13. Thomas Court Low-Rise 49 1/12 2/12 5/12 10Arlington, Virginia

14. The Nines at Gleneagles Low-Rise 120 1/12 1/12 2/13 11Waldorf, Maryland

15. Archstone Gaithersburg Station Low-Rise 371 1/12 2/12 5/14 13Gaithersburg, Maryland

16. Village at Odenton Station Low-Rise 235 2/12 5/12 11/13 11Odenton, Maryland

17. Flats at Atlas Low-Rise 257 3/12 4/12 11/13 12Washington, DC

18. Avalon First and M High-Rise 469 3/12 6/12 8/14 14Washington, DC

19. Solaire Silver Spring High-Rise 243 3/12 4/12 11/13 10Silver Spring, Maryland

20. Post Carlyle Square - Ph. II High-Rise 332 3/12 5/12 11/13 15Alexandria, Virginia

21. Residences at Hidden Creek Low-Rise 255 4/12 6/12 11/13 10Gaithersburg, Maryland

22. Gables Upper Rock - Phase I Low-Rise 240 4/12 6/12 11/13 11North Rockville, Maryland

23. The Haven at Odenton Gateway Low-Rise 252 4/12 4/12 6/13 18Odenton, Maryland

24. The Griffin Mid-Rise 49 4/12 4/12 6/12 24Washington, DC

25. Meridian Mount Vernon Triangle High-Rise 390 4/12 6/12 6/13 26Washington, DC

26. Madison at Ballston Station - Phase II Mid-Rise 270 4/12 5/12 8/13 15Arlington, Virginia

27. The Courts at Historic Manassas Low-Rise 104 5/12 7/12 6/13 8Manassas, Virginia

28. 2201 Pershing Apartments Mid-Rise 172 5/12 9/12 6/13 13Arlington, Virginia

29. Station Square at Cosners Corner Low-Rise 276 5/12 7/12 5/14 10Fredericksburg, Virginia

30. The Enclave at Potomac Club Low-Rise 406 5/12 8/12 5/14 19Woodbridge, Virginia

31. BLVD | Loudoun Station Mid-Rise 350 6/12 7/12 5/14 16Ashburn, Virgnia

32. The Lotus /The Lofts- Halstead Square Mid-Rise 380 6/12 7/12 8/14 14Vienna, Virginia

33. Avalon Park Crest Mid-Rise 354 6/12 8/12 11/13 19McLean, Virginia

34. Elan Settler's Landing Low-Rise 243 7/12 12/12 11/13 14California, Maryland

35. Orchard Meadows at North Ridge Low-Rise 144 7/12 10/12 6/13 11Columbia, Maryland

36. The Beacon of Groveton Mid-Rise 290 7/12 10/12 8/14 11Alexandria, Virginia

37. Garfield Park Mid-Rise 143 7/12 9/12 8/13 10Arlington, Virginia

38. Corner 4209 Mid-Rise 191 7/12 9/12 5/14 9Fairfax, Virginia

39. AVA H Street Mid-Rise 124 9/12 11/12 6/13 13Washington, DC

40. The Asher High-Rise 206 9/12 9/12 11/13 13Alexandria, Virginia

TABLE 3.12ABSORPTION SUMMARY | CLASS A APARTMENT PROJECTS

WASHINGTON METROPOLITAN AREAThird Quarter 2011 Through Third Quarter 2014

OVERALL MONTHLY LEASE-

UP PACE 1PROJECT NAME/LOCATION TYPE OF PROJECT TOTAL

UNITS

DATE MARKETING

BEGAN

DATE DELIVERED

DATE STABILIZED







UNITS

DATE MARKETING

BEGAN

DATE DELIVERED

DATE STABILIZED

41. Capitol View on 14th High-Rise 255 9/12 11/12 5/14 12Washington, DC

42. Palette at Arts District Low-Rise 242 10/12 11/12 5/14 10Hyattsville, Maryland

43. The Park at Walnut Ridge Low-Rise 204 10/12 2/13 5/14 13Frederick, Maryland

44. Aria on L Mid-Rise 54 12/12 1/13 11/13 4Washington, DC

45. Highland Park - Phase II High-Rise 116 12/12 1/13 11/13 9Washington, DC

46. Flats 130 at Constitution Square - Phase II High-Rise 203 2/13 3/13 8/14 9Washington, DC

47. 360 H Street Mid-Rise 198 2/13 4/13 5/14 15Washington, DC

48. The Palisades at Arundel Preserve High-Rise 330 2/13 4/13 8/14 17Hanover, Maryland

49. Brookland Works - Monroe St. Market Mid-Rise 152 3/13 7/13 5/14 11Washington, DC

50. The District Mid-Rise 125 3/13 4/13 11/13 14Washington, DC

51. Kennedy Row Mid-Rise 130 3/13 3/13 5/14 11Washington, DC

52. Camden South Capitol High-Rise 264 4/13 5/13 8/14 13Washington, DC

53. Henderson Park Low-Rise 66 4/13 6/13 8/13 13Arlington, Virginia

54. Harmony Place Low-Rise 286 4/13 6/13 8/14 18Bowie, Maryland

55. Arcadia Run Low-Rise 152 5/13 7/13 8/14 9Manassas, Virginia

56. Brompton House Low-Rise 254 5/13 6/13 8/14 15Elkridge, Maryland

57. 7th Flats at Progression Place High-Rise 154 8/13 9/13 8/14 11Washington, DC

58. Portland Flats - Monroe St. Market Mid-Rise 88 8/13 11/13 5/14 11Washington, DC

59. Bond Building Apartments High-Rise 83 9/13 2/14 9/14 7Washington, DC

60. Avery Row Low-Rise 67 12/13 12/13 8/14 4Arlington, Virginia

61. The Harper Mid-Rise 134 2/14 2/14 8/14 19Washington, DC

Overall Total/Average (1996-Present): 96,348 -- -- -- 16

Those That Began Marketing in 2003: Total/Average: 4,750 -- -- -- 20








Those That Began Marketing in 2011: Total/Average: 3,450 -- -- -- 16Those That Began Marketing in 2012: Total/Average: 7,786 -- -- -- 13Those That Began Marketing in 2013: Total/Average: 2,552 -- -- -- 13Those That Began Marketing in 2014: Total/Average: 134 -- -- -- 19

1 Includes months of pre-leasing activity.

Source: Compiled by Delta Associates, 500 Montgomery St., Suite 600, Alexandria, VA 22314. Phone: (703) 836-5700,

Last update: September 2014.

0

5

10

15

20

25

0

2,000

4,000

6,000

8,000

10,000

12,000

2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014

Ove

rall

Mon

thly

Lea

se-U

p Pa

ce

Apar

tmen

t Uni

ts

MARKETING STARTS AND OVERALL MONTHLY LEASE-UP PACE FOR STABILIZED PROJECTS Washington Metro Area | 2003-2014

No. of Units

Abs. Pace





UNITS

DATE MARKETING

BEGAN

DATE DELIVERED

DATE STABILIZED

41. Capitol View on 14th High-Rise 255 9/12 11/12 5/14 12Washington, DC

42. Palette at Arts District Low-Rise 242 10/12 11/12 5/14 10Hyattsville, Maryland

43. The Park at Walnut Ridge Low-Rise 204 10/12 2/13 5/14 13Frederick, Maryland

44. Aria on L Mid-Rise 54 12/12 1/13 11/13 4Washington, DC

45. Highland Park - Phase II High-Rise 116 12/12 1/13 11/13 9Washington, DC

46. Flats 130 at Constitution Square - Phase II High-Rise 203 2/13 3/13 8/14 9Washington, DC

47. 360 H Street Mid-Rise 198 2/13 4/13 5/14 15Washington, DC

48. The Palisades at Arundel Preserve High-Rise 330 2/13 4/13 8/14 17Hanover, Maryland

49. Brookland Works - Monroe St. Market Mid-Rise 152 3/13 7/13 5/14 11Washington, DC

50. The District Mid-Rise 125 3/13 4/13 11/13 14Washington, DC

51. Kennedy Row Mid-Rise 130 3/13 3/13 5/14 11Washington, DC

52. Camden South Capitol High-Rise 264 4/13 5/13 8/14 13Washington, DC

53. Henderson Park Low-Rise 66 4/13 6/13 8/13 13Arlington, Virginia

54. Harmony Place Low-Rise 286 4/13 6/13 8/14 18Bowie, Maryland

55. Arcadia Run Low-Rise 152 5/13 7/13 8/14 9Manassas, Virginia

56. Brompton House Low-Rise 254 5/13 6/13 8/14 15Elkridge, Maryland

57. 7th Flats at Progression Place High-Rise 154 8/13 9/13 8/14 11Washington, DC

58. Portland Flats - Monroe St. Market Mid-Rise 88 8/13 11/13 5/14 11Washington, DC

59. Bond Building Apartments High-Rise 83 9/13 2/14 9/14 7Washington, DC

60. Avery Row Low-Rise 67 12/13 12/13 8/14 4Arlington, Virginia

61. The Harper Mid-Rise 134 2/14 2/14 8/14 19Washington, DC

Overall Total/Average (1996-Present): 96,348 -- -- -- 16









Those That Began Marketing in 2011: Total/Average: 3,450 -- -- -- 16Those That Began Marketing in 2012: Total/Average: 7,786 -- -- -- 13Those That Began Marketing in 2013: Total/Average: 2,552 -- -- -- 13Those That Began Marketing in 2014: Total/Average: 134 -- -- -- 19

1 Includes months of pre-leasing activity.

Source: Compiled by Delta Associates, 500 Montgomery St., Suite 600, Alexandria, VA 22314. Phone: (703) 836-5700,

Last update: September 2014.

0

5

10

15

20

25

0

2,000

4,000

6,000

8,000

10,000

12,000

2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014

Ove

rall

Mon

thly

Lea

se-U

p Pa

ce

Apar

tmen

t Uni

ts

MARKETING STARTS AND OVERALL MONTHLY LEASE-UP PACE FOR STABILIZED PROJECTS Washington Metro Area | 2003-2014

No. of Units

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tes,

500

Mon

tgom

ery

St., S

uite

600

, Ale

xand

ria,

Vir

gini

a 22

314.

Pho

ne (7

03) 8

36-5

700.

Las

t Upd

ate

Sept

embe

r 201

4.

Dat

e

0

2,00

0

4,00

0

6,00

0

8,00

0

10,0

00

12,0

00

14,0

00

16,0

00

12/1999

12/2000

12/2001

12/2002

12/2005

12/2006

12/2007

12/2008

12/2009

12/2010

12/2011

12/2012

12/2013

3/2014

6/2014

9/2014

Avai

labl

e U

nits

in P

roje

cts U

nder

Co

nstr

uctio

n #

of A

vaila

ble

Mar

ket R

ate

Uni

ts

City

of A

lexa

ndria

Arlin

gton

Cou

nty

Fairf

ax C

ount

y

Loud

oun

Coun

ty

Prin

ce W

illia

m C

o.

Staf

f., S

pot.,

Fre

d.




BLE

3.14

REN

TAL

PRO

JECT

S PL

ANN

ED T

O D

ELIV

ER O

VER

THE

NEX

T 36

MO

NTH

S

Proj

ect N

ame

Proj

ect T

ype

Loca

tion

# of

Mkt

. Rat

e U

nits

Prop

er Z

onin

g?In

itial

Ap

prov

als?

Site

Pla

n Ap

prov

edBl

dg. P

mts

. Is

sued

?Es

t. Co

nstr

. St

art D

ate

City

of A

lexa

ndria

1La

ndm

ark

Gate

way

- Ph

ase

IIM

id-R

iseVa

n Do

rn15

0Ye

sYe

sYe

sN

o4Q

201

42

The

Gate

way

at K

ing

and

Beau

rega

rdHi

gh-R

iseW

est A

lexa

ndria

405

No

No

No

No

1Q 2

015

Arlin

gton

Cou

nty

367

2 Fl

ats

Mid

-Rise

Balls

ton

170

No

No

No

No

10/2

015

410

th S

tree

t Fla

tsM

id-R

ise/M

ixed

Use

Clar

endo

n13

5Ye

sYe

sYe

sN

o3Q

201

55

The

Wel

lingt

on -

Addi

tion

Mid

-Rise

Colu

mbi

a Pi

ke42

5Ye

sN

oN

oN

o7/

2015

6m

. Fla

ts C

ryst

al C

ityHi

gh-R

iseCr

ysta

l City

182

Yes

Yes

Yes

No

9/20

147

2221

S. C

lark

Str

eet

High

-Rise

Crys

tal C

ity25

2N

oN

oN

oN

oTB

D8

Resid

ence

s at E

ast F

alls

Chur

ch M

etro

Mid

-Rise

East

Fal

ls Ch

urch

Met

ro14

7N

oN

oN

oN

o9/

2015

940

0 Ar

my-

Nav

y Dr

ive

High

-Rise

Pent

agon

City

453

No

No

No

No

1Q 2

015

10Pi

erce

Que

enHi

gh-R

iseRo

ssly

n11

5Ye

sYe

sYe

sYe

s10

/201

411

Met

ro R

ossly

n Ap

artm

ents

Mid

-Rise

Ross

lyn

42Ye

sYe

sN

oN

o1Q

201

6

Fairf

ax C

ount

y /1

12Av

alon

at B

aile

y's C

ross

road

sM

id-R

iseBa

iley'

s Cro

ssro

ads

251

No

No

No

No

1Q 2

016

13Fa

irfax

Circ

leM

id-R

ise/M

ixed

Use

Fair

Oak

s40

0N

oYe

sN

oN

o1Q

201

514

Oak

Kno

llsGa

rden

Fairf

ax22

5N

oN

oN

oN

o20

1515

Villa

ge o

f Acc

otin

kGa

rden

w/S

PFo

rt B

elvo

ir26

9Ye

sYe

sN

oN

o12

/201

416

Arro

wbr

ook

Cent

re -

Phas

e I

Mid

-Rise

Hern

don

177

Yes

Yes

Yes

No

4Q 2

014

17Du

lles T

ech

Mid

-Rise

Hern

don

410

No

No

No

No

2Q 2

016

18Hu

ntin

gton

Ave

nue

Site

Mid

-Rise

Hunt

ingt

on14

1N

oN

oN

oN

o20

1419

Hunt

ingt

on A

venu

e Si

teHi

gh-R

iseHu

ntin

gton

180

Yes

Yes

Yes

No

2Q 2

015

20Th

e Gr

ande

at H

untin

gton

Mid

-Rise

/Mix

ed U

seHu

ntin

gton

250

Yes

Yes

No

No

4Q 2

015

21La

urel

Hill

Gard

enLo

rton

Pris

on17

7N

oYe

sN

oN

o4Q

201

422

Resid

ence

s at R

esto

n St

atio

nM

id-R

iseRe

ston

370

Yes

Yes

No

No

4Q 2

014

23Re

ston

Hei

ghts

- Ph

ase

IM

id-R

ise/M

ixed

Use

Rest

on30

0Ye

sYe

sYe

sN

o1Q

201

524

6406

Arli

ngto

n Bo

ulev

ard

Mid

-Rise

Seve

n Co

rner

s17

4Ye

sYe

sYe

sN

o1Q

201

525

The

Com

mon

s - P

h. I

High

-Rise

Tyso

ns C

orne

r25

5Ye

sYe

sN

oN

o12

/201

426

Tyso

ns W

est

Gard

en w

/SP

Tyso

ns C

orne

r32

5Ye

sYe

sYe

sN

o2Q

201

527

7915

Jone

s Bra

nch

Driv

eM

id-R

iseTy

sons

Cor

ner

400

No

No

No

No

9/20

1528

Gree

nsbo

ro S

tatio

n - P

hase

s A1,

A3

& B

3Hi

gh-R

iseTy

sons

Cor

ner

500

No

No

No

No

3Q 2

015

29Ty

sons

Cen

tral

NVC

omm

erci

al -

Bldg

. FHi

gh-R

iseTy

sons

Cor

ner

323

Yes

Yes

No

No

3Q 2

015

Loud

oun

Coun

ty30

Elm

s at A

rcol

aGa

rden

Arco

la24

8Ye

sYe

sYe

sN

o4Q

201

431

Kinc

ora

- Pha

se I

Gard

enBr

oad

Run

550

Yes

Yes

No

No

1Q 2

015

32Ki

ncor

a - P

hase

IIGa

rden

Broa

d Ru

n15

0Ye

sYe

sN

oN

o1Q

201

633

Lans

dow

ne T

owne

Cen

ter

Mid

-Rise

/Mix

ed U

seLa

nsdo

wne

50N

oN

oN

oN

o4Q

201

4

North

ern V

irgin

iaTh

ird Q

uarte

r 201

4




TABL

E 3.

14RE

NTA

L PR

OJE

CTS

PLAN

NED

TO

DEL

IVER

OVE

R TH

E N

EXT

36 M

ON

THS

Proj

ect N

ame

Proj

ect T

ype

Loca

tion

# of

Mkt

. Rat

e U

nits

Prop

er Z

onin

g?In

itial

Ap

prov

als?

Site

Pla

n Ap

prov

edBl

dg. P

mts

. Is

sued

?Es

t. Co

nstr

. St

art D

ate

North

ern V

irgin

iaTh

ird Q

uarte

r 201

4

Prin

ce W

illia

m C

ount

y /2

34Ha

ven

at H

aym

arke

t Cro

ssin

gGa

rden

Haym

arke

t31

6Ye

sYe

sN

oN

o2Q

201

535

Elm

s at W

alke

r's S

tatio

nGa

rden

Man

assa

s Par

k29

6Ye

sYe

sYe

sN

o4Q

201

436

Nea

bsco

Com

mon

s - P

hase

IIM

id-R

iseW

oodb

ridge

155

Yes

Yes

Yes

No

4Q 2

014

37Po

tom

ac T

own

Cent

er -

Phas

e II

Gard

enW

oodb

ridge

200

Yes

Yes

Yes

No

2Q 2

015

Staf

ford

, Spo

tsyl

vani

a, C

ity o

f Fre

dric

ksbu

rg38

Abbe

rly a

t Sta

fford

Mid

-Rise

Aqui

a Di

stric

t28

8Ye

sYe

sYe

sN

o10

/201

439

Stat

ion

Squa

re a

t Cos

ner's

Cor

ner -

Ph.

IIGa

rden

Fred

eric

ksbu

rg12

0N

oN

oN

oN

o1Q

201

540

Oak

enw

old

Gard

enFr

eder

icks

burg

200

No

No

No

No

2015

41Ab

berly

at S

outh

poin

tM

id-R

iseFr

eder

icks

burg

280

No

No

No

No

3/20

15To

tal A

ll U

nit T

ypes

: -

-10

,456

--

--

-Po

rtio

n Ga

rden

s:

--

3,07

6-

--

--

Port

ion

Mid

-Ris

e/Hi

gh-R

ise:

-

-7,

380

--

--

-/1

Incl

udes

citie

s of F

airf

ax a

nd F

alls

Chur

ch.

/2 In

clud

es ci

ties o

f Man

assa

s and

Man

assa

s Par

k.

Com

paris

on to

Prio

r Yea

rsEs

timat

e of

Nex

t 18-

36 M

onth

Pip

elin

e as

of:

# U

nits

9/20

1410

,456

6/20

1411

,533

3/20

1412

,591

12/2

013

11,3

2512

/201

213

,078

12/2

011

13,2

5312

/201

012

,490

12/2

009

9,39

812

/200

810

,022

12/2

007

11,8

7512

/200

65,

284

12/2

005

1,33

312

/200

45,

043

12/2

003

6,15

512

/200

26,

189

12/2

001

8,02

512

/200

07,

677

12/1

999

7,93

0

Not

e: O

ur b

est j

udgm

ent a

s to

proj

ects

like

ly to

del

iver

thei

r fir

st u

nits

in th

e ne

xt 3

6 m

onth

s with

out r

egar

d to

the

prob

abili

ty o

f mat

eria

lizat

ion.

See

Tab

le A

for m

ater

ializ

atio

n fa

ctor

. If w

e ha

ve m

issed

you

r pro

ject

, ple

ase

let u

s kno

w.

Not

e: U

nles

s you

pro

vide

dat

a fo

r thi

s tab

le, n

ames

of s

pons

ors a

re n

o lo

nger

ava

ilabl

e to

subs

crib

ers.

If y

ou p

rovi

de d

ata

for t

his t

able

and

wish

to k

now

sele

ct

spon

sors

' nam

es, e

-mai

l you

r req

uest

to R

ache

lle.S

arm

ient

o@De

ltaAs

soci

ates

.com

.So

urce

: Com

pile

d by

Del

ta A

ssoc

iate

s, 50

0 M

ontg

omer

y St

., Sui

te 6

00, A

lexa

ndri

a, V

irgi

nia

2231

4. P

hone

(703

) 836

-570

0. L

ast U

pdat

e Se

ptem

ber 2

014.

Date




BLE

3.15

SUM

MAR

Y O

F LO

NGE

R-TE

RM P

LAN

NED

/RU

MO

RED

REN

TAL

APAR

TMEN

T PR

OJE

CTS

Proj

ect N

ame

Proj

ect T

ype

Loca

tion

# of

Mkt

. Rat

e U

nits

Prop

er

Zoni

ng?

Initi

al

Appr

oval

s?Si

te P

lan

Appr

oved

Bldg

. Pm

ts.

Issu

ed?

Est.

Cons

tr.

Star

t Dat

eCi

ty o

f Ale

xand

ria1

Wes

t Riv

er S

tatio

n Re

dev.

Mid

-Rise

Alex

andr

ia36

9N

oN

oN

oN

oN

/A2

The

Dalto

nM

id-R

iseBr

addo

ck M

etro

270

Yes

Yes

Yes

Yes

TBD

3Ca

mer

on P

ark

Mid

-Rise

Cam

eron

Sta

tion

Boul

evar

d39

1N

oN

oN

oN

oN

/A4

Carly

le P

laza

High

-Rise

Carly

le36

5Ye

sYe

sN

oN

oN

/A5

Eise

nhow

er B

lock

5Hi

gh-R

iseCa

rlyle

260

Yes

No

No

No

N/A

6Ei

senh

ower

Blo

ck 1

1Hi

gh-R

iseCa

rlyle

375

Yes

Yes

Yes

No

N/A

7Ei

senh

ower

Blo

ck 1

2Hi

gh-R

iseCa

rlyle

380

Yes

Yes

No

No

N/A

8Be

aure

gard

Tow

n Ce

nter

- Ph

ase

IM

id-R

iseW

est A

lexa

ndria

300

No

No

No

No

3Q 2

016

9Be

aure

gard

Tow

n Ce

nter

- O

ther

Pha

ses

Mid

-Rise

Wes

t Ale

xand

ria80

0N

oN

oN

oN

oN

/A10

Land

mar

k M

all R

edev

elop

men

tM

id-R

iseW

est A

lexa

ndria

400

Yes

Yes

No

No

N/A

11Se

min

ary

Hills

Red

evel

opm

ent

Mid

-Rise

Wes

t Ale

xand

ria72

0Ye

sYe

sYe

sN

oN

/AAr

lingt

on C

ount

y12

Mar

ymou

nt R

edev

elop

men

t - B

lue

Goos

e Si

teHi

gh-R

iseBa

llsto

n25

6Ye

sYe

sYe

sN

o1Q

201

513

Balls

ton

Com

mon

Mal

l Apa

rtm

ents

High

-Rise

Balls

ton

393

No

No

No

No

1Q 2

016

14Bl

uem

ont S

afew

ay R

edev

elop

men

tM

id-R

ise/M

ixed

Use

Blue

mon

t16

0N

oN

oN

oN

oN

/A15

2400

Col

umbi

a Pi

keM

id-R

iseCo

lum

bia

Pike

105

No

No

No

No

N/A

16W

akef

ield

Man

or R

edev

elop

men

tHi

gh-R

iseCo

urth

ouse

104

Yes

Yes

Yes

No

N/A

17Pl

aza

VHi

gh-R

iseCr

ysta

l City

353

No

No

No

No

2017

18Ai

rpor

t Pla

za P

hase

IVHi

gh-R

iseCr

ysta

l City

208

Yes

Yes

Yes

No

N/A

19Lo

fts a

t Cry

stal

Hou

ses

Gard

en w

/SP

Crys

tal C

ity23

9Ye

sYe

sYe

sN

oN

/A20

King

s Cro

ssin

g - P

h. II

IM

id-R

iseHu

ntin

gton

Met

ro35

0N

oN

oN

oN

oN

/A21

Six

Met

ropo

litan

Par

kHi

gh-R

isePe

ntag

on C

ity52

0Ye

sYe

sN

oN

oN

/A22

Seve

n M

etro

polit

an P

ark

High

-Rise

Pent

agon

City

395

Yes

Yes

No

No

N/A

23Ei

ght M

etro

polit

an P

ark

High

-Rise

Pent

agon

City

455

Yes

Yes

No

No

N/A

24N

atio

nal G

atew

ay -

Phas

e I

High

-Rise

Poto

mac

Yar

d36

0Ye

sYe

sYe

sYe

sN

/A25

Nat

iona

l Gat

eway

- Ph

ase

IIHi

gh-R

isePo

tom

ac Y

ard

331

Yes

Yes

Yes

No

N/A

2614

00 b

lock

of K

ey B

lvd

High

-Rise

Ross

lyn

130

No

No

No

No

2016

27Ro

ssly

n Pl

aza

-Red

ev.

High

-Rise

Ross

lyn

350

No

No

No

No

N/A

28Pa

rk S

hirli

ngto

nM

id-R

iseSh

irlin

gton

750

No

No

No

No

N/A

Fairf

ax C

ount

y /1

29AM

F An

nand

ale

Lane

s Site

High

-Rise

Anna

ndal

e31

0N

oN

oN

oN

oN

/A30

Baile

y's G

atew

ayM

id-R

iseBa

iley'

s Cro

ssro

ads

500

No

No

No

No

TBD

31Tr

inity

Cen

tre

Mid

-Rise

Cent

revi

lle31

2N

oN

oN

oN

o20

1732

Fair

Lake

s exp

ansio

nM

id-R

iseFa

ir La

kes

650

Yes

Yes

No

No

TBD

33La

yton

Hal

l Apa

rtm

ents

Mid

-Rise

Fairf

ax C

ity34

2Ye

sYe

sYe

sN

oTB

D34

Falls

Chu

rch

City

Cen

ter

High

-Rise

Falls

Chu

rch

412

Yes

Yes

No

No

N/A

35Ar

row

broo

k Ce

ntre

- Ph

ase

IIM

id-R

iseHe

rndo

n10

8Ye

sYe

sYe

sN

oN

/A36

Hunt

ingt

on C

ross

ing

Mid

-Rise

Hunt

ingt

on29

5N

oN

oN

oN

o2Q

201

637

Rive

rsid

e Re

deve

lopm

ent

Mid

-Rise

Hunt

ingt

on55

0Ye

sN

oN

oN

o3Q

201

638

Fello

wsh

ip S

quar

eM

id-R

iseLa

ke A

nne

285

Yes

Yes

No

No

N/A

39As

hby

Apar

tmen

ts a

dditi

onHi

gh-R

iseM

cLea

n25

3N

oN

oN

oN

oN

/A40

Mos

aic

Dist

rict -

Ph.

III

Mid

-Rise

Mer

rifie

ld15

0Ye

sYe

sN

oN

oN

/A41

Rest

on H

eigh

ts -

Phas

e II

Mid

-Rise

/Mix

ed U

seRe

ston

200

Yes

No

No

No

2017

42Bl

ock

4Hi

gh-R

iseRe

ston

Tow

n Ce

nter

549

Yes

Yes

No

No

3Q 2

015

43Ex

celsi

or P

arc

High

-Rise

Rest

on T

own

Cent

er45

7Ye

sYe

sYe

sN

oN

/A44

Tyso

ns W

est

Mid

-Rise

Tyso

ns C

orne

r75

0Ye

sN

oN

oN

o20

1645

Tyso

ns C

entr

al N

VCom

mer

cial

- Bl

dg. C

High

-Rise

Tyso

ns C

orne

r24

0Ye

sN

oN

oN

o20

1746

Tyso

ns C

entr

al C

lyde

's - B

ldg.

DHi

gh-R

iseTy

sons

Cor

ner

288

Yes

No

No

No

2018

47Pa

rk C

rest

Thr

eeHi

gh-R

iseTy

sons

Cor

ner

236

Yes

Yes

Yes

No

N/A

48Ar

bor R

ow -

Pha

se I

High

-Rise

Tyso

ns C

orne

r35

3Ye

sYe

sN

oN

oN

/A49

8200

Gre

ensb

oro

Driv

eHi

gh-R

iseTy

sons

Cor

ner

384

Yes

Yes

Yes

No

N/A

50Co

mfo

rt In

n Ty

sons

Site

High

-Rise

Tyso

ns C

orne

r72

0N

oN

oN

oN

oN

/A

North

ern V

irgin

iaTh

ird Q

uarte

r 201

4




TABL

E 3.

15SU

MM

ARY

OF

LON

GER-

TERM

PLA

NN

ED/R

UM

ORE

D RE

NTA

L AP

ARTM

ENT

PRO

JECT

S

Proj

ect N

ame

Proj

ect T

ype

Loca

tion

# of

Mkt

. Rat

e U

nits

Prop

er

Zoni

ng?

Initi

al

Appr

oval

s?Si

te P

lan

Appr

oved

Bldg

. Pm

ts.

Issu

ed?

Est.

Cons

tr.

Star

t Dat

e

North

ern V

irgin

iaTh

ird Q

uarte

r 201

4

Fairf

ax C

ount

y /1

(Con

tinue

d)51

Wes

tpar

k Pl

aza

- Ph.

IIHi

gh-R

iseTy

sons

Cor

ner

600

No

No

No

No

N/A

52Ar

bor R

ow -

Phas

e II

Mid

-Rise

Tyso

ns C

orne

r22

3Ye

sYe

sN

oN

oN

/A53

The

Com

mon

s - O

ther

pha

ses

High

-Rise

Tyso

ns C

orne

r1,

835

Yes

No

No

No

N/A

54W

estp

ark

Plaz

a - P

h. 1

High

-Rise

Tyso

ns C

orne

r60

0N

oN

oN

oN

oN

/A55

TBA

High

-Rise

Tyso

ns C

orne

r16

2N

oN

oN

oN

oN

/A56

Tow

ers C

resc

ent (

Bldg

D)

High

-Rise

Tyso

ns C

orne

r26

6Ye

sYe

sYe

sN

oN

/A57

Tow

ers C

resc

ent (

Bldg

E)

High

-Rise

Tyso

ns C

orne

r25

0Ye

sYe

sYe

sN

oN

/A58

Tow

ers C

resc

ent (

Bldg

G)

High

-Rise

Tyso

ns C

orne

r25

0Ye

sYe

sYe

sN

oN

/A59

Fairl

ee-M

etro

Wes

t - P

hase

IM

id-R

ise &

Hig

h-Ri

seVi

enna

Met

ro31

4Ye

sYe

sN

oN

oN

/A60

Fairl

ee-M

etro

Wes

t - P

hase

IIM

id-R

ise &

Hig

h-Ri

seVi

enna

Met

ro31

4Ye

sYe

sN

oN

oN

/A61

Fairl

ee-M

etro

Wes

t - P

hase

III

Mid

-Rise

& H

igh-

Rise

Vien

na M

etro

272

Yes

Yes

No

No

N/A

Loud

oun

Coun

ty62

Loud

oun

Park

way

Cen

ter S

outh

Mid

-Rise

/Mix

ed U

seAs

hbur

n56

0N

oN

oN

oN

oN

/A63

Kinc

ora

- Pha

se II

IM

id-R

iseBr

oad

Run

547

Yes

Yes

No

No

2017

64Fo

x Ga

teM

id-R

iseCh

antil

ly11

0Ye

sYe

sYe

sN

o4Q

201

865

Win

dmill

Par

c - P

hase

IIM

id-R

iseDu

lles

219

Yes

Yes

Yes

NA

TBD

66So

mer

set P

ark

Addi

tion

Gard

enLe

esbu

rg42

Yes

No

No

No

N/A

67Du

lles P

arkw

ay C

ente

r - L

ot 8

Mid

-Rise

Ster

ling

494

Yes

No

No

No

2016

68St

one

Ridg

e Ph

ase

15B

Gard

enSt

one

Ridg

e21

5Ye

sYe

sN

oN

oTB

D

Prin

ce W

illia

m C

ount

y /2

69Br

iarw

ood

Gard

enDu

mfir

es23

1Ye

sYe

sYe

sN

oN

/A70

Wel

lingt

on G

len

- Ph.

III-V

Gard

enM

anas

sas

316

Yes

No

No

No

N/A

71Fr

eest

one

- Ph.

IIGa

rden

w/S

PW

oodb

ridge

220

Yes

Yes

No

No

4Q 2

016

72Ri

ppon

Cen

ter -

Ph.

IGa

rden

w/S

PW

oodb

ridge

320

Yes

Yes

No

No

N/A

73Ri

ppon

Cen

ter -

Ph.

IIGa

rden

w/S

PW

oodb

ridge

230

Yes

Yes

No

No

N/A

Tota

l All

Uni

t Typ

es:

--

27,0

23-

--

--

Port

ion

Gard

ens:

-

-1,

813

--

--

-Po

rtio

n M

id-R

ise/

High

-Ris

e:

--

25,2

10-

--

--

/1 In

clud

es ci

ties o

f Fai

rfax

and

Fal

ls Ch

urch

./2

Incl

udes

citie

s of M

anas

sas a

nd M

anas

sas P

ark.

Com

para

tive

Long

er T

erm

Pip

elin

e Fo

r Mar

ket

# U

nits

9/20

1427

,023

6/20

1424

,101

3/20

1425

,050

12/2

013

23,9

8412

/201

217

,601

12/2

011

14,8

5812

/201

09,

876

12/2

009

15,0

0912

/200

813

,670

12/2

007

8,57

812

/200

69,

700

12/2

005

8,01

912

/200

43,

472

12/2

003

8,61

212

/200

211

,745

12/2

001

7,27

312

/200

08,

977

12/1

999

8,83

7

Note

: Un

less

you

pro

vide

dat

a fo

r thi

s tab

le, n

ames

of s

pons

ors a

re n

o lo

nger

ava

ilabl

e to

subs

crib

ers.

If y

ou p

rovi

de d

ata

for t

his t

able

and

wish

to k

now

sele

ct

spon

sors

' nam

es, e

-mai

l you

r req

uest

to R

ache

lle.S

arm

ient

o@De

ltaAs

soci

ates

.com

.

Sour

ce: C

ompi

led

by D

elta

Ass

ocia

tes,

500

Mon

tgom

ery

St., S

uite

600

, Ale

xand

ria, V

irgin

ia 2

2314

. Pho

ne (7

03) 8

36-5

700.

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t Upd

ate

Sept

embe

r 201

4.

Rate

Apa

rtm

ents

as o

f:Da

te




BLE

3.16

REN

TAL

APAR

TMEN

T PR

OJE

CTS

UN

DER

CON

STRU

CTIO

N A

ND/

OR

MAR

KETI

NG

Subu

rban

Mar

yland

Third

Qua

rter 2

014

Proj

ect N

ame

Proj

ect T

ype

Loca

tion

Spon

sor(

s)#

of M

kt. R

ate

Uni

ts#

of U

nits

Ab

sorb

ed#

of A

vaila

ble

Uni

tsDa

te P

re-L

sg.

Begi

nsIn

ital O

ccup

. Da

teDa

te C

onst

r. Co

mpl

ete

Anne

Aru

ndel

Cou

nty

1Cr

ossw

inds

at A

nnap

olis

Tow

n Ce

nter

Mid

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Anna

polis

Bozz

uto

215

196

194/

2013

7/20

139/

2013

2Th

e Be

acon

at W

augh

Cha

pel

Mid

-Rise

Gam

brill

sBo

zzut

o29

827

424

1/20

133/

2013

6/20

133

Cree

ksid

e Vi

llage

Gard

enGl

en B

urni

eAt

apco

Pro

pert

ies

208

120

883/

2014

3/20

143Q

201

44

Flat

s 170

at A

cade

my

Yard

Gard

enO

dent

onBo

zzut

o36

927

198

4/20

136/

2013

11/2

013

5N

ovus

Res

iden

ces O

dent

onM

id-R

iseO

dent

onN

ovus

Res

iden

ces L

LC24

40

244

2Q 2

015

7/20

157/

2015

6Br

oads

tone

at O

dent

on T

own

Cent

erGa

rden

Ode

nton

Allia

nce

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entia

l21

20

212

2Q 2

015

3Q 2

015

3Q 2

015

Calv

ert,

Char

les,

St.

Mar

y's C

ount

ies

7Gl

enea

gles

Apa

rtm

ents

- Ph

. III

Gard

enW

aldo

rfFe

dera

l Cap

ital P

artn

ers

213

021

310

/201

411

/201

43/

2015

Fred

eric

k Co

unty

8Ha

ven

at M

arke

t Squ

are

Gard

enFr

eder

ick

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son

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lopm

ent A

ssoc

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714

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013

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014

9Pr

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ct H

all A

part

men

tsGa

rden

Fred

eric

kM

atan

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pani

es37

639

337

4/20

147/

2014

12/2

014

10Ca

nter

bury

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tion

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enFr

eder

ick

Ralp

h J.

Duffi

e Co

mpa

ny16

00

160

1Q 2

015

2Q 2

015

1Q 2

016

How

ard

Coun

ty11

Tow

n Ce

nter

at A

nnap

olis

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tion

Mid

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Anna

polis

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tion

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erse

t Con

stru

ctio

n Co

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40

384

4Q 2

015

2Q 2

016

2Q 2

016

12Th

e M

etro

polit

an D

ownt

own

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mbi

aM

id-R

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lum

bia

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ler

380

038

09/

2014

11/2

014

3/20

1513

Verd

e at

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ard

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reM

id-R

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krid

geAt

apco

Pro

pert

ies

300

255

458/

2013

11/2

013

2Q 2

014

14Pa

rago

n at

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umbi

a O

verlo

okGa

rden

Elkr

idge

Ches

apea

ke R

ealty

Par

tner

s32

017

314

71/

2014

4/20

142Q

201

515

Orc

hard

Par

k Ap

artm

ents

- Ad

ditio

nGa

rden

Ellic

ott C

itySe

curit

y De

velo

pmen

t40

040

8/20

1411

/201

43/

2015

16O

xfor

d Sq

uare

- Ph

. IGa

rden

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ver

Woo

dfie

ld In

vest

men

ts21

00

210

2Q 2

015

3Q 2

015

2Q 2

016

Mon

tgom

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Coun

ty17

Galle

ry B

ethe

sda

High

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Beth

esda

Dono

hoe

198

160

3811

/201

31/

2014

5/20

1418

Bain

brid

ge B

ethe

sda

High

-Rise

Beth

esda

Bain

brid

ge C

os.

170

4013

06/

2014

7/20

143Q

201

419

7001

Arli

ngto

n Rd

Mid

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Beth

esda

Asso

ciat

ed E

stat

es11

90

119

4Q 2

014

4Q 2

014

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015

20Th

e Fl

ats

High

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esda

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ebrid

ge A

ssoc

iate

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40

124

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015

2Q 2

015

2Q 2

015

2183

00 W

iscon

sinHi

gh-R

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thes

daSt

oneb

ridge

Ass

ocia

tes

314

031

42Q

201

53Q

201

53Q

201

522

7770

Nor

folk

Ave

.Hi

gh-R

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daRo

ss D

evel

opm

ent

207

020

73Q

201

54Q

201

54Q

201

523

Elem

ent 2

8Hi

gh-R

iseBe

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daKe

ttle

r91

091

10/2

015

10/2

015

1/20

1624

Sola

ire B

ethe

sda

High

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Beth

esda

Was

hing

ton

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erty

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pany

140

014

02/

2016

2/20

166/

2016

25El

ms a

t Cla

rksb

urg

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geGa

rden

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ksbu

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m S

tree

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men

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ram

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at S

pect

rum

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en w

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urg

BP R

ealty

200

195

56/

2013

7/20

133Q

201

327

Cade

nce

at C

row

nM

id-R

iseGa

ither

sbur

gBo

zzut

o46

517

628

92/

2014

3/20

147/

2014

28M

illst

one

at K

ings

view

Gard

enGe

rman

tow

nTe

rra

Verd

e Co

mm

uniti

es L

LC13

210

131

1/20

141Q

201

43/

2014

29Al

ta L

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ty M

illM

id-R

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rman

tow

nW

ood

Part

ners

266

026

610

/201

44Q

201

42Q

201

530

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and

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ethe

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149

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298

124

174

4/20

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2014

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vest

men

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287

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015

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015

33M

allo

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quar

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orth

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kvill

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ield

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stm

ents

318

031

84Q

201

42Q

201

53Q

201

534

Bain

brid

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veM

id-R

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orth

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kvill

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inbr

idge

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30

363

4/20

154/

2015

8/20

1535

The

Perr

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k Po

tom

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part

men

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60

266

6/20

158/

2015

8/20

1536

Upto

n at

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kvill

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ckvi

lleDu

ball

225

022

51Q

201

51Q

201

52Q

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537

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on A

part

men

tsM

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lver

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191

187

41/

2013

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2013

38El

even

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iple

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oper

ties

304

163

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9/20

131/

2014

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014

39Th

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prin

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sight

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pert

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oup

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271

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24/

2014

8/20

1410

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441

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inbr

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201

53Q

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inbr

ook

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43Th

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Sta

tion

High

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aton

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roup

425

239

186

8/20

1310

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31/

2014

44So

laire

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hing

ton

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pany

203

020

312

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32/

2014

4/20

1445

The

Geor

geHi

gh-R

iseW

heat

onLo

we

Ente

rpris

es16

926

143

6/20

146/

2014

3Q 2

014




TABL

E 3.

16RE

NTA

L AP

ARTM

ENT

PRO

JECT

S U

NDE

R CO

NST

RUCT

ION

AN

D/O

R M

ARKE

TIN

GSu

burb

an M

aryla

ndTh

ird Q

uarte

r 201

4

Proj

ect N

ame

Proj

ect T

ype

Loca

tion

Spon

sor(

s)#

of M

kt. R

ate

Uni

ts#

of U

nits

Ab

sorb

ed#

of A

vaila

ble

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tsDa

te P

re-L

sg.

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nsIn

ital O

ccup

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mpl

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Prin

ce G

eorg

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ount

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lo a

t Cam

p Sp

rings

Gard

en w

/SP

Bran

ch A

ve. M

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r Sch

war

tz41

70

417

1Q 2

015

2Q 2

015

4Q 2

015

47Do

mai

n Co

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Par

kM

id-R

iseCo

llege

Par

kHa

nove

r Dev

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men

t25

325

03

3/20

136/

2013

1Q 2

014

4833

50 a

t Alte

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Hyat

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tee

283

195

882/

2014

5/20

143Q

201

449

Larg

o M

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Site

Mid

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Larg

oLe

nnar

318

031

81Q

201

51Q

201

53Q

201

550

The

Mar

k at

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kyar

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w/S

PLa

urel

JLB

Part

ners

433

272

161

5/20

138/

2013

6/20

1451

C St

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id-R

iseLa

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Klin

gbei

l Cap

ital M

anag

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20

142

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015

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015

52La

urel

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dens

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el R

ealty

114

011

44Q

201

41Q

201

61Q

201

653

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arbo

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20

262

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144Q

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41Q

201

5To

tal A

ll U

nit T

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--

13,2

494,

219

9,03

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149,

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753

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5612

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28,

316

12/2

011

5,77

612

/201

02,

312

12/2

009

3,34

412

/200

86,

716

12/2

007

8,03

312

/200

65,

563

12/2

005

3,92

612

/200

45,

185

12/2

003

4,64

112

/200

24,

097

12/2

001

3,09

712

/200

02,

202

12/1

999

2,16

7

Not

e: T

his T

able

may

incl

ude

som

e pr

ojec

ts li

sted

on

Tabl

e 3.

11So

urce

: Com

pile

d by

Del

ta A

ssoc

iate

s, 50

0 M

ontg

omer

y St

., Sui

te 6

00, A

lexa

ndri

a, V

irgi

nia

2231

4. P

hone

(703

) 836

-570

0. L

ast U

pdat

e Se

ptem

ber 2

014.

Com

paris

on to

Prio

r Yea

rs

(Ava

ilabl

e U

nits

in P

roje

cts U

nder

Co

nstr

uctio

n ) a

t:

02,

000

4,00

06,

000

8,00

010

,000

12,0

00

12/199912/200012/200112/200212/200312/200412/200512/200012/200112/200212/200312/200412/200512/200712/200812/200912/201012/201112/201012/201212/2013

3/20146/20149/2014

Avai

labl

e U

nits

in P

roje

cts U

nder

Co

nstr

uctio

n #

of A

vaila

ble

Mar

ket R

ate

Uni

ts

Anne

Aru

ndel

Cou

nty

Calv

ert,

Char

les,

St. M

ary'

sCo

untie

sFr

eder

ick

Coun

ty

How

ard

Coun

ty

Mon

tgom

ery

Coun

ty

Prin

ce G

eorg

e's C

ount

y




BLE

3.17

REN

TAL

PRO

JECT

S PL

ANN

ED T

O D

ELIV

ER O

VER

THE

NEX

T 36

MO

NTH

S

Proj

ect N

ame

Proj

ect T

ype

Loca

tion

# of

Mkt

. Rat

e U

nits

Prop

er Z

onin

g?In

itial

Ap

prov

als?

Site

Pla

n Ap

prov

edBl

dg. P

mts

. Is

sued

?Es

t. Co

nstr

. St

art D

ate

Anne

Aru

ndel

Cou

nty

1Ad

mira

l Coc

hran

eM

id-R

iseAn

napo

lis23

6Ye

sYe

sYe

sN

o11

/201

42

Rese

rve

at A

nnap

olis

Stat

ion

Gard

enAn

napo

lis13

3Ye

sN

oN

oN

o4Q

201

43

Elm

s at S

hann

onGa

rden

Jess

up36

0Ye

sYe

sYe

sN

o4Q

201

44

The

Rese

rve

at S

tone

y Cr

eek

Ph. I

IGa

rden

Pasa

dena

70Ye

sYe

sYe

sN

o4Q

201

45

Cree

ksto

ne V

illag

e -P

hase

IIGa

rden

& T

HPa

sade

na11

0Ye

sYe

sYe

sN

o1Q

201

5Ho

war

d Co

unty

6Sa

vage

Tow

ne C

entr

eM

id-R

iseAn

napo

lis Ju

nctio

n35

4Ye

sYe

sYe

sN

o1Q

201

57

Villa

ge a

t Wild

e La

keM

id-R

iseCo

lum

bia

230

Yes

Yes

Yes

No

9/20

148

Colu

mbi

a To

wn

Cent

er R

edev

elop

men

t - P

hase

II -

Nor

thM

id-R

iseCo

lum

bia

170

Yes

Yes

No

No

2Q 2

015

9Co

lum

bia

Tow

n Ce

nter

Red

evel

opm

ent -

Pha

se II

- So

uth

Mid

-Rise

Colu

mbi

a26

7Ye

sYe

sN

oN

o2Q

201

510

Litt

le P

atux

ent S

quar

eHi

gh-R

iseCo

lum

bia

Tow

n Ct

r16

0Ye

sYe

sYe

sN

o4Q

201

411

Rive

rwat

chM

id-R

iseEl

krid

ge84

Yes

Yes

No

No

3Q 2

014

12Bl

uest

ream

- P

hase

IIGa

rden

Elkr

idge

237

Yes

Yes

Yes

No

1Q 2

015

13N

orm

andy

Sho

ppin

g Ct

r. Re

dev.

Gard

en/M

ixed

-Use

Ellic

ott C

ity20

0Ye

sN

oN

oN

o2Q

201

614

Oxf

ord

Squa

re -

Ph. I

IIM

id-R

iseHa

nove

r25

0Ye

sYe

sYe

sN

o4Q

201

415

Park

way

Mot

el S

iteM

id-R

iseJe

ssup

279

No

No

No

No

1Q 2

015

Mon

tgom

ery

Coun

ty16

Bain

brid

ge B

ethe

sda

Met

roHi

gh-R

iseBe

thes

da22

5Ye

sYe

sN

oN

o12

/201

417

4850

Rug

byHi

gh-R

iseBe

thes

da18

7Ye

sYe

sYe

sN

o1Q

201

518

7900

Wisc

onsin

Ave

nue

High

-Rise

Beth

esda

374

Yes

Yes

Yes

Yes

1Q 2

015

19Ca

bin

Bran

chGa

rden

Boyd

s25

0Ye

sYe

sN

oN

o4Q

201

520

Garn

kirk

Far

ms A

part

men

tsGa

rden

Clar

ksbu

rg16

3Ye

sYe

sYe

sN

o1Q

201

621

The

Maj

estic

at W

atki

ns M

illM

id-R

iseGa

ither

sbur

g26

9Ye

sYe

sYe

sN

o4Q

201

422

Pike

and

Ros

e - P

h. 2

AHi

gh-R

iseN

orth

Bet

hesd

a23

1Ye

sYe

sYe

sN

o4Q

201

423

Lake

Wav

erly

- Ph

ase

IM

id-R

iseN

orth

Bet

hesd

a35

0Ye

sYe

sN

oN

o4Q

201

524

Gabl

es W

hite

Flin

tM

id-R

iseN

orth

Bet

hesd

a43

7Ye

sYe

sN

oN

o4Q

201

525

Whi

te F

lint V

iew

High

-Rise

Nor

th B

ethe

sda

165

Yes

Yes

Yes

No

2015

26Ro

ck S

prin

g Ce

ntre

- DR

IM

id-R

iseN

orth

Bet

hesd

a11

7Ye

sYe

sYe

sN

o1Q

201

627

Hano

ver S

hady

Gro

veM

id-R

iseN

orth

Roc

kvill

e31

6Ye

sYe

sYe

sN

o9/

2014

28Ca

mde

n Sh

ady

Grov

eM

id-R

iseN

orth

Roc

kvill

e39

9Ye

sYe

sYe

sN

o1Q

201

529

Cres

t II

Mid

-Rise

Rock

ville

48Ye

sYe

sYe

sN

o11

/201

430

Wes

tsid

e at

Sha

dy G

rove

Met

roM

id-R

ise &

TH

Rock

ville

707

Yes

Yes

No

No

4Q 2

014

3125

5 N

. Was

hing

ton

St.

Mid

-Rise

Rock

ville

262

Yes

No

No

No

6/20

1532

The

Blai

rs -

Phas

e I

High

-Rise

Silv

er S

prin

g28

0Ye

sYe

sN

oN

o4Q

201

433

Firs

t Bap

tist C

hurc

h Pr

oper

tyM

id-R

iseSi

lver

Spr

ing

259

Yes

Yes

Yes

No

4Q 2

014

3490

0 Th

ayer

Ave

nue

Mid

-Rise

Silv

er S

prin

g12

4Ye

sYe

sN

oN

o4Q

201

435

Stud

io P

laza

- Ph

ase

IM

id-R

iseSi

lver

Spr

ing

331

Yes

Yes

Yes

No

1Q 2

015

3686

21 G

eorg

ia A

venu

eHi

gh-R

iseSi

lver

Spr

ing

240

Yes

Yes

Yes

No

2Q 2

015

37So

laire

Rip

ley

East

High

-Rise

Silv

er S

prin

g29

0N

oN

oN

oN

o20

1538

1900

Cha

pman

Mid

-Rise

Twin

broo

k27

1Ye

sYe

sYe

sN

o1Q

201

539

1900

Cha

pman

- Ph

ase

IIM

id-R

iseTw

inbr

ook

288

Yes

Yes

Yes

No

3Q 2

015

40AV

A W

heat

onM

id-R

ise/M

ixed

Use

Whe

aton

321

Yes

Yes

No

No

3Q 2

015

Third

Qua

rter 2

014

Subu

rban

Mar

yland




TABL

E 3.

17 R

ENTA

L PR

OJE

CTS

PLAN

NED

TO

DEL

IVER

OVE

R TH

E N

EXT

36 M

ON

THS

Proj

ect N

ame

Proj

ect T

ype

Loca

tion

# of

Mkt

. Rat

e U

nits

Prop

er Z

onin

g?In

itial

Ap

prov

als?

Site

Pla

n Ap

prov

edBl

dg. P

mts

. Is

sued

?Es

t. Co

nstr

. St

art D

ate

Third

Qua

rter 2

014

Subu

rban

Mar

yland

Prin

ce G

eorg

e's C

ount

y41

Karin

gton

Gard

enBo

wie

400

Yes

Yes

Yes

No

2Q 2

015

42Ch

else

a Ea

stGa

rden

Bran

ch A

ve. M

etro

208

Yes

Yes

Yes

No

2Q 2

015

43TB

AGa

rden

Capi

tol H

eigh

ts M

etro

363

Yes

No

No

No

1Q 2

016

44M

onum

ent V

illag

eM

id-R

ise/R

etai

lCo

llege

Par

k23

5Ye

sYe

sYe

sN

o4Q

201

445

Auto

ville

Driv

e Si

teGa

rden

Colle

ge P

ark

500

Yes

No

No

No

3Q 2

015

46Ve

rde

at G

reen

belt

Stat

ion

Mid

-Rise

Gree

nbel

t30

2Ye

sYe

sYe

sN

o11

/201

447

Gree

nbel

t Sta

tion

Gard

en w

/SP

Gree

nbel

t30

2Ye

sYe

sYe

sN

o20

1448

Gree

nbel

t Pla

ceM

id-R

iseGr

eenb

elt

450

Yes

Yes

No

No

2015

49La

ndy

Prop

erty

- Ph

ase

IGa

rden

w/S

PHy

atts

ville

218

Yes

Yes

Yes

No

4Q 2

014

5034

01 E

ast-

Wes

tM

id-R

iseHy

atts

ville

348

Yes

Yes

No

No

4Q 2

015

51Be

lcre

st P

laza

- Ph

ase

IIHi

gh-R

iseHy

atts

ville

347

Yes

Yes

Yes

No

2015

52Br

ight

seat

Cro

ssin

g Ap

artm

ents

Gard

enLa

ndov

er37

2N

oN

oN

oN

o4/

2015

5350

1 La

rgo

Cent

er D

rive

Mid

-Rise

Larg

o36

0N

oN

oN

oN

o2Q

201

554

Apol

lo a

t Lar

go T

own

Cent

erM

id-R

iseLa

rgo

430

Yes

No

No

No

3Q 2

015

55W

ests

ide

Gard

enLa

urel

469

Yes

Yes

Yes

No

10/2

014

56Ha

wth

orne

Pla

ce -

Phas

e I

Mid

-Rise

Laur

el29

6Ye

sYe

sYe

sN

o12

/201

457

Aval

on L

aure

lGa

rden

Laur

el34

4Ye

sYe

sYe

sN

o4Q

201

458

Laur

el M

ARC

Stat

ion

Mid

-Rise

Laur

el31

0Ye

sYe

sN

oN

o1Q

201

559

Mid

tow

n N

orth

par

cel -

Pha

se I

Mid

-Rise

Nat

iona

l Har

bor

240

Yes

Yes

Yes

No

4Q 2

015

60N

ew C

arro

llton

Met

ro S

tatio

n De

velo

pmen

t – P

hase

IGa

rden

New

Car

rollt

on25

0Ye

sN

oN

oN

o1Q

201

661

Rive

rdal

e Pa

rk -

Phas

e I

Mid

-Rise

Rive

rdal

e Pa

rk26

3Ye

sYe

sYe

sN

o1Q

201

6To

tal A

ll U

nit T

ypes

: -

-17

,051

--

--

-Po

rtio

n G

arde

ns:

--

4,94

9-

--

--

Port

ion

Mid

-Ris

e/Hi

gh-R

ise:

-

-12

,102

--

--

-

Date

# U

nits

9/20

1417

,051

6/20

1415

,593

3/20

1415

,548

12/2

013

15,8

7912

/201

213

,318

12/2

011

16,2

2212

/201

09,

599

12/2

009

6,01

912

/200

86,

927

12/2

007

6,67

612

/200

66,

598

12/2

005

4,45

012

/200

45,

836

12/2

003

3,62

212

/200

22,

198

12/2

001

3,36

612

/200

04,

387

12/1

999

3,39

0

Not

e: O

ur b

est j

udgm

ent a

s to

proj

ects

like

ly to

del

iver

thei

r fir

st u

nits

in th

e ne

xt 3

6 m

onth

s with

out r

egar

d to

the

prob

abili

ty o

f mat

eria

lizat

ion.

See

Tab

le A

for m

ater

ializ

atio

n fa

ctor

. If w

e ha

ve m

issed

you

r pro

ject

, ple

ase

let u

s kno

w.

Not

e: U

nles

s you

pro

vide

dat

a fo

r thi

s tab

le, n

ames

of s

pons

ors a

re n

o lo

nger

ava

ilabl

e to

subs

crib

ers.

If y

ou p

rovi

de d

ata

for t

his t

able

and

wish

to k

now

sele

ct

spon

sors

' nam

es, e

-mai

l you

r req

uest

to R

ache

lle.S

arm

ient

o@De

ltaAs

soci

ates

.com

.

Sour

ce: C

ompi

led

by D

elta

Ass

ocia

tes,

500

Mon

tgom

ery

St., S

uite

600

, Ale

xand

ria,

Vir

gini

a 22

314.

Pho

ne (7

03) 8

36-5

700.

Las

t Upd

ate

Sept

embe

r 201

4.

Com

paris

on to

Prio

r Yea

rs

Estim

ate

of N

ext 1

8-36

Mon

th P

ipel

ine

as o

f:




BLE

3.18

SUM

MAR

Y O

F LO

NGE

R-TE

RM P

LAN

NED

/RU

MO

RED

REN

TAL

APAR

TMEN

T PR

OJE

CTS

Proj

ect N

ame

Proj

ect T

ype

Loca

tion

# of

Mkt

. Rat

e U

nits

Prop

er Z

onin

g?In

itial

Ap

prov

als?

Site

Pla

n Ap

prov

edBl

dg. P

mts

. Is

sued

?Es

t. Co

nstr

. St

art D

ate

Anne

Aru

ndel

Cou

nty

1Cr

omw

ell P

rope

rty

Gard

enGl

en B

urni

e29

3Ye

sYe

sN

oN

oN

/A2

Conc

orde

Circ

le -

Ph. I

Gard

enLi

nthi

cum

310

Yes

Yes

Yes

No

TBD

3Co

ncor

de C

ircle

- Ph

. II

Gard

enLi

nthi

cum

300

No

No

No

No

N/A

4O

dent

on T

own

Squa

re -

Phas

e I

Gard

en w

/SP

Ode

nton

315

No

No

No

No

N/A

Calv

ert,

Char

les,

St.

Mar

y's C

ount

ies

5St

. Mar

y's C

ross

ings

Gard

enCa

lifor

nia

324

Yes

Yes

No

No

N/A

How

ard

Coun

ty6

The

Cres

cent

Gard

enCo

lum

bia

Dow

ntow

n50

0N

oN

oN

oN

oTB

D7

The

Park

at L

ocus

t Thi

cket

Mid

-Rise

Elkr

idge

350

Yes

No

No

No

4Q 2

015

8Bl

uest

ream

- O

ther

Pha

ses

Gard

enEl

krid

ge95

0Ye

sYe

sN

oN

oN

/A9

Map

le La

wn

Sout

hGa

rden

Fulto

n27

0Ye

sYe

sYe

sN

oN

/A10

Oxf

ord

Squa

re -

Ph. I

IM

id-R

iseHa

nove

r25

0Ye

sYe

sN

oN

o20

1511

Oxf

ord

Squa

re -

Ph. I

VM

id-R

iseHa

nove

r25

0Ye

sYe

sN

oN

oN

/A12

Laur

el P

ark

Stat

ion

- Ph.

IM

id-R

iseLa

urel

252

Yes

Yes

No

No

N/A

Mon

tgom

ery

Coun

ty13

Tom

my

Joe'

s Site

High

-Rise

Beth

esda

225

No

No

No

No

N/A

14Th

e Re

scue

Squ

adM

id-R

iseBe

thes

da28

0N

oN

oN

oN

oN

/A15

Wes

t Lan

eM

id-R

iseBe

thes

da10

2Ye

sYe

sN

oN

oN

/A16

Our

isman

For

d Si

teM

id-R

iseBe

thes

da29

7Ye

sYe

sYe

sN

oN

/A17

TBA

High

-Rise

Beth

esda

523

No

No

No

No

N/A

18Ch

evy

Chas

e La

ke -

Build

ing

B2M

id-R

iseCh

evy

Chas

e19

6Ye

sYe

sN

oN

o20

1619

Chev

y Ch

ase

Lake

- Bu

ildin

g B1

bHi

gh-R

iseCh

evy

Chas

e30

5Ye

sYe

sN

oN

o20

1620

The

Mag

nolia

at W

atki

ns M

illGa

rden

w/ S

PGa

ither

sbur

g22

5Ye

sYe

sYe

sN

o1Q

201

721

The

Rem

ingt

on a

t Wat

kins

Mill

Mid

-Rise

Gaith

ersb

urg

378

Yes

No

No

No

N/A

22Th

e Lo

tus a

t Wat

kins

Mill

Mid

-Rise

Gaith

ersb

urg

210

Yes

Yes

Yes

No

N/A

23Th

e Em

pres

s at W

atki

ns M

illGa

rden

w/ S

PGa

ither

sbur

g25

2Ye

sYe

sYe

sN

oN

/A24

Was

hing

toni

an N

orth

Mid

-Rise

Gaith

ersb

urg

366

Yes

Yes

No

No

TBD

25Re

siden

ces a

t Old

e To

wne

Gard

en w

/SP

Gaith

ersb

urg

Old

e To

wn

162

Yes

Yes

Yes

No

N/A

26Su

ites 3

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Cent

ury

site

Mid

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anto

wn

300

Yes

No

No

No

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te -

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Yes

No

No

No

N/A

31M

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y Vi

llage

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f Cou

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Rede

v.M

id-R

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598

No

No

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2017

32M

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ter

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enM

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llage

253

No

No

No

No

N/A

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No

No

No

No

N/A

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335

Yes

Yes

Yes

No

N/A

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IVHi

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1640

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1643

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Yes

Yes

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2Q 2

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305

No

No

No

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Spr

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Mid

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Yes

Yes

Yes

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N/A

46Fa

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Yes

Yes

No

No

N/A

49Am

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No

No

No

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N/A

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E 3.

18SU

MM

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OF

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TERM

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Third

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Mon

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ty (c

ontin

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52Tw

inbr

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sHi

gh-R

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Yes

Yes

Yes

No

N/A

53Tw

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ook

Met

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IHi

gh-R

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inbr

ook

347

Yes

Yes

Yes

No

N/A

54Ha

lpin

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ew R

edev

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men

tGa

rden

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broo

k1,

730

No

No

No

No

N/A

55Pi

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Mid

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broo

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201

857

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part

men

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heat

on16

2Ye

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201

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59M

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201

762

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Belc

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Land

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532

Yes

Yes

Yes

No

N/A

67Br

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Sta

tion

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se II

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en w

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1668

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thor

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lace

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ase

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id-R

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405

Yes

Yes

Yes

No

N/A

69Br

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Sta

tion

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se II

IGa

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w/S

PLa

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230

Yes

Yes

No

No

N/A

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tew

ay A

rts D

istric

tM

id-R

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ount

Ran

ier

210

No

No

No

No

N/A

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wn

Nor

th -

Oth

er P

hase

sHi

gh-R

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atio

nal H

arbo

r56

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New

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on M

etro

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tion

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ther

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ses

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1773

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rk -

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rk30

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1774

Rive

rdal

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Phas

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sYe

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o20

2075

Wes

tpha

lia C

ente

r - P

hase

IM

id-R

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estp

halia

400

Yes

Yes

Yes

No

N/A

Tota

l All

Uni

t Typ

es:

--

29,3

03-

--

--

Port

ion

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ens:

-

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070

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igh-

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: -

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,233

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Com

para

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13,4

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211

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3

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less

you

prov

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his t

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es o

f spo

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no

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Date




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Distr

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4




TABL

E 3.

19RE

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L AP

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mpl

ete

Distr

ict of

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mbi

aTh

ird Q

uarte

r 201

4

Capi

tol H

ill/R

iver

fron

t (Co

ntin

ued)

41Pa

rk C

helse

aHi

gh-R

iseCa

pito

l Riv

erfr

ont

Will

iam

C. S

mith

& C

o.42

90

429

2Q 2

015

2Q 2

015

3Q 2

015

42Th

e Lo

fts a

t Cap

itol Q

uart

erGa

rden

& T

HCa

pito

l Riv

erfr

ont

Urb

an-A

tlant

ic15

60

156

2Q 2

015

3Q 2

015

4Q 2

015

41Ar

risHi

gh-R

iseCa

pito

l Riv

erfr

ont

Fore

st C

ity W

ashi

ngto

n25

60

256

3Q 2

015

4Q 2

015

4Q 2

015

42Ga

llery

at C

apito

l Riv

erfr

ont

High

-Rise

Capi

tol R

iver

fron

tDo

noho

e32

40

324

2Q 2

016

3Q 2

016

3Q 2

016

4380

0 N

J Ave

SE

High

-Rise

Capi

tol R

iver

fron

tW

illia

m C

. Sm

ith &

Co.

336

033

63Q

201

64Q

201

64Q

201

644

1600

Pen

nsyl

vani

a Av

enue

Mid

-Rise

Hill

East

Nov

o De

velo

pmen

t69

069

1Q 2

015

2Q 2

015

2Q 2

015

45Sk

y Ho

use

East

High

-Rise

SW W

ater

fron

tU

rban

-Atla

ntic

213

204

912

/201

31/

2014

1/20

1446

Sky

Hous

e W

est

High

-Rise

SW W

ater

fron

tU

rban

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ntic

211

021

110

/201

411

/201

411

/201

4

Upp

er G

A47

The

Swift

Mid

-Rise

Petw

orth

Prin

cipa

l Rea

l Est

ate

Inve

stor

s20

05

195

8/20

149/

2014

9/20

1448

Tako

ma

Cent

ral

Mid

-Rise

Tako

ma

Leve

l 2 D

evel

opm

ent

144

913

58/

2014

11/2

014

11/2

014

Nor

thea

st49

Corn

erst

one

- Mon

roe

St.M

arke

tM

id-R

iseBr

ookl

and

Abdo

Dev

elop

men

t LLC

282

120

162

3/20

144/

2014

2Q 2

014

50He

cht W

areh

ouse

Dist

rict

Mid

-Rise

Ivy

City

Doug

las D

evel

opm

ent

306

030

620

1520

1520

1551

Fort

Tot

ten

Squa

reM

id-R

iseFo

rt T

otte

nJB

G34

50

345

1Q 2

015

1Q 2

015

2Q 2

015

Tota

l All

Uni

t Typ

es:

--

-11

,542

2,53

99,

003

--

-Po

rtio

n G

arde

ns:

--

-21

40

214

--

-Po

rtio

n M

id-R

ise/

High

-Ris

e:

--

-11

,328

2,53

98,

789

--

-

Date

# U

nits

9/20

149,

003

6/20

149,

770

3/20

149,

541

12/2

013

9,27

412

/201

28,

274

12/2

011

6,39

812

/201

03,

286

12/2

009

2,13

712

/200

84,

017

12/2

007

3,71

712

/200

62,

167

12/2

005

1,24

212

/200

41,

972

12/2

003

2,82

212

/200

23,

631

12/2

001

2,27

712

/200

072

612

/199

939

412

/199

822

812

/199

782

Not

e: T

his T

able

may

incl

ude

som

e pr

ojec

ts li

sted

on

Tabl

e 3.

11So

urce

: Com

pile

d by

Del

ta A

ssoc

iate

s, 50

0 M

ontg

omer

y St

., Sui

te 6

00, A

lexa

ndri

a, V

irgi

nia

2231

4. P

hone

(703

) 836

-570

0. L

ast U

pdat

e Se

ptem

ber 2

014.

Com

paris

on to

Prio

r Yea

rs

(Ava

ilabl

e U

nits

in P

roje

cts U

nder

0

2,00

0

4,00

0

6,00

0

8,00

0

10,0

00

12,0

00

12/199712/199812/199912/200012/200112/200212/200312/200412/200512/200612/200712/200612/200712/200812/200912/201012/201112/201212/2013

3/20146/20149/2014

Avai

labl

e U

nits

in

Pro

ject

s Und

er C

onst

ruct

ion

# of

Ava

ilabl

e M

arke

t Rat

e U

nits

U

pper

NW

Colu

mbi

a He

ight

s/Sh

aw

Cent

ral

NoM

a/H

Str

eet

Capi

tol H

ill/R

iver

fron

t

Upp

er G

A

Nor

thea

st

Rive

r Eas

t




BLE

3.20

REN

TAL

PRO

JECT

S PL

ANN

ED T

O D

ELIV

ER O

VER

THE

NEX

T 36

MO

NTH

S

Proj

ect N

ame

Proj

ect T

ype

Loca

tion

# of

Mkt

. Rat

e U

nits

Prop

er Z

onin

g?In

itial

Ap

prov

als?

Site

Pla

n Ap

prov

edBl

dg. P

mts

. Is

sued

?Es

t. Co

nstr

. St

art D

ate

Upp

er N

orth

wes

t1

3000

M S

tree

tM

id-R

iseGe

orge

tow

n14

0N

oN

oN

oN

o1/

2015

Colu

mbi

a He

ight

s/Sh

aw2

City

Mar

ket a

t OM

id-R

iseSh

aw14

5Ye

sYe

sYe

sN

o3/

2015

3Pa

rcel

42

High

-Rise

Shaw

84N

oN

oN

oN

o3Q

201

54

13th

& U

Mid

-Rise

U S

tree

t11

8Ye

sYe

sYe

sYe

s1Q

201

55

1401

UHi

gh-R

iseU

Str

eet

270

Yes

Yes

NA

NA

2015

Cent

ral

6TB

DM

id-R

iseAd

ams M

orga

n45

No

No

No

No

4Q 2

015

715

Dup

ont C

ircle

Mid

-Rise

Dupo

nt C

ircle

86Ye

sYe

sYe

sN

o1/

2015

814

00 1

4th

Stre

etM

id-R

iseLo

gan

Circ

le30

Yes

Yes

Yes

No

4Q 2

014

990

Bla

gden

Alle

yM

id-R

iseM

t. Ve

rnon

Squ

are

108

Yes

No

No

No

1/20

1510

Squa

re 3

7 - E

ast

High

-Rise

Wes

t End

93Ye

sYe

sYe

sN

o4Q

201

4N

oMa/

H St

reet

11At

las D

istric

t - P

hase

IIGa

rden

w/S

PH

Stre

et17

3Ye

sYe

sYe

sN

o3Q

201

512

Uni

on P

lace

Mid

-Rise

NoM

a36

Yes

Yes

Yes

No

10/2

014

13St

orey

Par

k Fl

ats

High

-Rise

NoM

a30

0Ye

sYe

sN

oN

o11

/201

414

22 M

Str

eet

High

-Rise

NoM

a32

9Ye

sN

oN

oN

o4Q

201

415

55M

High

-Rise

NoM

a43

8Ye

sYe

sYe

sYe

s1Q

201

516

Uni

on P

lace

- Ph

ase

IHi

gh-R

iseN

oMa

270

Yes

Yes

No

No

2Q 2

015

1733

N S

tree

t - C

apito

l Poi

ntHi

gh-R

iseN

oMa

342

Yes

Yes

Yes

No

2Q 2

015

18Ca

mde

n N

oMa

- Pha

se II

High

-Rise

NoM

a40

5Ye

sYe

sYe

sYe

s20

1519

Gate

way

Mar

ket C

ente

rM

id-R

iseTr

inid

ad15

0Ye

sYe

sN

oN

o1Q

201

5Ca

pito

l Hill

/Riv

erfr

ont

20Ri

verf

ront

on

the

Anac

ostia

High

-Rise

Capi

tol R

iver

fron

t29

5Ye

sYe

sYe

sN

o9/

2014

21Sq

uare

701

High

-Rise

Capi

tol R

iver

fron

t29

9Ye

sYe

sYe

sYe

s10

/201

422

82 I

Stre

etHi

gh-R

iseCa

pito

l Riv

erfr

ont

234

Yes

Yes

No

No

11/2

014

23Ha

lf St

reet

- Ak

ridge

High

-Rise

Capi

tol R

iver

fron

t27

7Ye

sYe

sYe

sN

o4Q

201

424

909

Half

Stre

etHi

gh-R

iseCa

pito

l Riv

erfr

ont

404

Yes

Yes

Yes

Yes

4Q 2

014

25Ca

pper

Car

rolls

burg

- Sq

uare

769

Nor

thHi

gh-R

iseCa

pito

l Riv

erfr

ont

137

Yes

Yes

Yes

No

2015

26Ca

pper

Car

rolls

burg

- Sq

uare

767

High

-Rise

Capi

tol R

iver

fron

t12

5Ye

sYe

sN

oN

o20

1527

1001

4th

Str

eet,

SWHi

gh-R

iseSW

Wat

erfr

ont

365

Yes

Yes

Yes

No

11/2

014

28Th

e W

harf

- Pa

rcel

2 W

est T

ower

Mid

-Rise

SW W

ater

fron

t14

6Ye

sYe

sYe

sN

o1Q

201

529

The

Wha

rf -

Parc

el 4

AM

id-R

iseSW

Wat

erfr

ont

101

Yes

Yes

Yes

No

1Q 2

015

30St

. Mat

thew

's Re

deve

lopm

ent

High

-Rise

SW W

ater

fron

t22

0Ye

sYe

sYe

sN

o1Q

201

531

The

Wha

rf -

Parc

el 2

Eas

t Tow

erM

id-R

iseSW

Wat

erfr

ont

192

Yes

Yes

Yes

No

1Q 2

015

32To

wn

Cent

er S

outh

High

-Rise

SW W

ater

fron

t14

8N

oN

oN

oN

o2Q

201

5N

orth

east

33Ch

anni

ng P

lace

- Bu

ildin

g A

Mid

-Rise

Bren

twoo

d15

6Ye

sYe

sYe

sN

o1/

2015

34Ch

anni

ng P

lace

- Bu

ildin

g B

Mid

-Rise

Bren

twoo

d12

8Ye

sYe

sYe

sN

o1/

2015

3590

1 M

onro

eM

id-R

iseBr

ookl

and

213

Yes

Yes

Yes

No

4Q 2

014

36Br

ookl

and

Squa

reM

id-R

iseBr

ookl

and

263

Yes

Yes

Yes

No

4Q 2

014

37Ar

t Pla

ce a

t For

t Tot

ten

- Pha

se I

Mid

-Rise

Fort

Tot

ten

399

Yes

Yes

Yes

Yes

4Q 2

014

Third

Qua

rter 2

014

Distr

ict of

Col

umbi

a




TABL

E 3.

20RE

NTA

L PR

OJE

CTS

PLAN

NED

TO

DEL

IVER

OVE

R TH

E N

EXT

36 M

ON

THS

Proj

ect N

ame

Proj

ect T

ype

Loca

tion

# of

Mkt

. Rat

e U

nits

Prop

er Z

onin

g?In

itial

Ap

prov

als?

Site

Pla

n Ap

prov

edBl

dg. P

mts

. Is

sued

?Es

t. Co

nstr

. St

art D

ate

Third

Qua

rter 2

014

Distr

ict of

Col

umbi

a

Rive

r Eas

t38

Capi

tol G

atew

ay M

arke

tpla

ceM

id-R

iseCa

pito

l Hei

ghts

255

Yes

Yes

Yes

No

11/2

014

39Pa

rksid

e - P

arce

l FM

id-R

iseRi

vers

ide

Terr

ace

360

Yes

No

No

No

4Q 2

014

Tota

l All

Uni

t Typ

es:

--

8,27

9-

--

--

Port

ion

Gar

dens

: -

-17

3-

--

--

Port

ion

Mid

-Ris

e/Hi

gh-R

ise:

-

-8,

106

--

--

-

Date

# U

nits

9/20

148,

279

6/20

147,

168

3/20

147,

735

12/2

013

6,84

012

/201

27,

947

12/2

011

7,94

512

/201

05,

978

12/2

009

6,18

212

/200

85,

386

12/2

007

4,95

512

/200

62,

160

12/2

005

1,83

212

/200

41,

178

12/2

003

1,19

612

/200

21,

735

12/2

001

1,70

512

/200

02,

149

12/1

999

1,23

9

Not

e: O

ur b

est j

udgm

ent a

s to

proj

ects

like

ly to

del

iver

thei

r fir

st u

nits

in th

e ne

xt 3

6 m

onth

s with

out r

egar

d to

the

prob

abili

ty o

f mat

eria

lizat

ion.

See

Tab

le A

for m

ater

ializ

atio

n fa

ctor

. If w

e ha

ve m

issed

you

r pro

ject

, ple

ase

let u

s kno

w.

Not

e: U

nles

s you

pro

vide

dat

a fo

r thi

s tab

le, n

ames

of s

pons

ors a

re n

o lo

nger

ava

ilabl

e to

subs

crib

ers.

If y

ou p

rovi

de d

ata

for t

his t

able

and

wish

to k

now

sele

ct

spon

sors

' nam

es, e

-mai

l you

r req

uest

to R

ache

lle.S

arm

ient

o@De

ltaAs

soci

ates

.com

.

Sour

ce: C

ompi

led

by D

elta

Ass

ocia

tes,

500

Mon

tgom

ery

St., S

uite

600

, Ale

xand

ria,

Vir

gini

a 22

314.

Pho

ne (7

03) 8

36-5

700.

Las

t Upd

ate

Sept

embe

r 201

4.

Com

paris

on to

Prio

r Yea

rsEs

timat

e of

Nex

t 18-

36 M

onth

Pip

elin

e as

of:




Proj

ect N

ame

Proj

ect T

ype

Loca

tion

# of

Mkt

. Rat

e U

nits

Prop

er Z

onin

g?In

itial

Ap

prov

als?

Site

Pla

n Ap

prov

edBl

dg. P

mts

. Is

sued

?Es

t. Co

nstr

. St

art D

ate

Upp

er N

orth

wes

t1

TBA

Mid

-Rise

Tenl

eyto

wn

30N

oN

oN

oN

o20

162

Tenl

ey V

iew

Mid

-Rise

Tenl

eyto

wn

60Ye

sN

oN

oN

oN

/ACo

lum

bia

Heig

hts/

Shaw

317

11 F

lorid

aM

id-R

iseAd

ams M

orga

n11

8Ye

sYe

sN

oN

o2Q

201

54

Vue

at 3

333

Geor

gia

Aven

ueHi

gh-R

isePa

rk V

iew

124

Yes

Yes

Yes

No

N/A

596

5 Fl

orid

a Av

enue

Mid

-Rise

U S

tree

t29

5N

oN

oN

oN

o20

186

How

ard

Tow

n Ce

nter

Mid

-Rise

U S

tree

t35

6Ye

sYe

sYe

sN

oN

/ACe

ntra

l7

Colu

mbi

a Pl

ace

Mid

-Rise

& H

igh-

Rise

Mt.

Vern

on S

quar

e20

0N

oN

oN

oN

oN

/A8

4th

and

K - P

h. I

High

-Rise

Mt.

Vern

on T

ri.45

0Ye

sYe

sYe

sN

o1Q

201

69

The

Cant

ata

High

-Rise

Mt.

Vern

on T

ri.26

0Ye

sYe

sN

oN

oN

/A10

455

Eye

High

-Rise

Mt.

Vern

on T

ri.17

4Ye

sYe

sYe

sN

oN

/A11

AV R

istor

ante

Ital

iano

site

High

-Rise

Mt.

Vern

on T

ri.24

9Ye

sN

oN

oN

oN

/AN

oMa/

H St

reet

1231

5 H

Stre

etM

id-R

iseH

Stre

et13

5N

oN

oN

oN

o4Q

201

613

H St

reet

Con

nect

ion

Wes

t - P

hase

IM

id-R

iseH

Stre

et20

7Ye

sYe

sYe

sN

o20

1614

H St

reet

Con

nect

ion

East

- Ph

ase

IIM

id-R

iseH

Stre

et14

4Ye

sYe

sYe

sN

o20

1815

300

M S

tree

tM

id-R

iseN

oMa

368

No

No

No

No

3Q 2

016

16Ca

pito

l Poi

ntHi

gh-R

iseN

oMa

70N

oN

oN

oN

oTB

D17

Uni

on P

lace

- Ph

ase

IIHi

gh-R

iseN

oMa

180

Yes

Yes

No

No

N/A

18Du

nbar

Pla

ceM

id-R

iseN

oMa

30Ye

sN

oN

oN

oN

/A19

100

K St

reet

High

-Rise

NoM

a20

6Ye

sYe

sYe

sN

oN

/ACa

pito

l Hill

/Riv

erfr

ont

20Bu

rnha

m P

lace

High

-Rise

Capi

tol H

ill22

5N

oN

oN

oN

o1Q

201

821

1244

Sou

th C

apito

lHi

gh-R

iseCa

pito

l Riv

erfr

ont

276

No

No

No

No

1Q 2

016

22Ca

pper

Car

rolls

burg

- Sq

uare

768

High

-Rise

Capi

tol R

iver

fron

t23

5Ye

sYe

sN

oN

o20

1623

Capp

er C

arro

llsbu

rg -

Squa

re 7

39Hi

gh-R

iseCa

pito

l Riv

erfr

ont

257

Yes

Yes

No

No

2017

24Ri

verf

ront

on

the

Anac

ostia

- Ph

. II

High

-Rise

Capi

tol R

iver

fron

t25

3N

oN

oN

oN

o20

1725

Half

Stre

etHi

gh-R

iseCa

pito

l Riv

erfr

ont

331

Yes

Yes

Yes

Yes

N/A

2613

33 M

Str

eet -

Ph.

IHi

gh-R

iseCa

pito

l Riv

erfr

ont

218

No

No

No

No

N/A

27W

ASA

site

- G1

parc

elHi

gh-R

iseCa

pito

l Riv

erfr

ont

322

No

No

No

No

N/A

28W

ASA

site

- G2

parc

elHi

gh-R

iseCa

pito

l Riv

erfr

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& T

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MM

ARY

OF

LON

GER-

TERM

PLA

NN

ED/R

UM

ORE

D RE

NTA

L AP

ARTM

ENT

PRO

JECT

SWASHINGTON STATISTICAL REPORT



Proj

ect N

ame

Proj

ect T

ype

Loca

tion

# of

Mkt

. Rat

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nits

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er Z

onin

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itial

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No

No

No

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N/A

41St

anto

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173

No

No

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# U

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556

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26,

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512

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88,

284

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62,

728

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3,61

412

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41,

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003

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001

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ames

of s

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subs

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and

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s of:




DATE # OF YEAROF SALE UNITS BUILT TOTAL PER UNIT

CLASS A LOW-RISE1. Comparable #1 1/13 204 2005 $39,600,000 $194,118

Gaithersburg, Maryland

2. Comparable #2 1/13 460 2001 $124,000,000 $269,565

Fairfax, Virginia

3. Comparable #1 2/13 216 2003 $44,800,000 $207,407Annapolis, Maryland

4. Comparable #3 2/13 404 1990 $92,120,465 $228,021

Fairfax, Virginia

5. Comparable #4 2/13 218 2002 $63,680,458 $292,112Herndon, Virginia

6. Comparable #5 2/13 320 1995 $71,768,000 $224,275

Herndon, Virginia

7. Comparable #6 3/13 127 2006 $20,000,000 $157,480Gainesville, Virginia

8. Comparable #7 4/13 67 2013 $33,000,000 $492,537

Arlington, Virginia

9. Comparable #8 5/13 413 2012 $86,100,000 $207,470Ashburn, Virginia

9. Comparable #9 5/13 260 2012 $44,642,000 $171,700

Fredericksburg, Virginia

10. Comparable #10 7/13 300 2012 $92,500,000 $308,333Lorton, Virginia

11. Comprable #11 8/13 252 2012 $61,000,000 $242,063

Odenton, Maryland

12. Comparable #12 8/13 445 2007 $91,500,000 $205,618Laurel, Maryland

13. Comprable #13 9/13 120 2011 $22,300,000 $185,833

Waldorf, Maryland

14. Comparable #14 9/13 132 1996 $36,000,001 $272,727Rockville, Maryland

15. Comprable #15 11/13 208 2008 $44,100,000 $212,019

Elkridge, Maryland

16. Comparable #16 11/13 140 2008 $24,000,000 $171,429Laurel, Maryland

17. Comparable #17 11/13 251 2013 $45,191,250 $180,045

Laurel, Maryland

18. Comparable #18 11/13 300 2013 $92,500,000 $308,333Lorton, Virginia

Total/Average: -- 4,837 -- $1,128,802,174 $233,368

CLASS A MID-RISE/HIGH-RISE1. Comparable #1 3/13 125 2013 $76,000,000 $608,000

Washington, DC 1/

2. Comparable #2 4/13 231 2013 $110,000,000 $476,190Washington, DC

3. Comparable #3 7/13 266 2008 $82,300,000 $309,398

Washington, DC

4. Comparable #4 11/13 419 2013 $222,000,000 $529,833Arlington, Virginia

5. Comparable #5 12/13 243 2005 $57,000,000 $234,568

Silver Spring, Maryland

Total/Average: -- 1,284 -- $547,300,000 $426,246

1/ Project includes 18,000 SF of retail space.

Note: Delta Associates no longer provides the name of each project listed above except to appraisal clients of the firm

and those who provide this type of transaction data to Delta. If you wish a list of project names and you qualify to receive

same, email your request to: [email protected].

Source: Compiled by Delta Associates, 500 Montgomery St., Suite 600, Alexandria, Virginia 22314.

Phone: (703) 836-5700. Last update: 9/2014.

TABLE 3.22SUMMARY OF CLASS A LOW-RISE AND HIGH-RISE APARTMENT BUILDING SALES

Washington Metropolitan Area2013

PROJECT NAME/LOCATIONSALE PRICE





CLASS A LOW-RISE1. Comparable #1 1/14 191 2012 $58,200,000 $304,712

Fairfax, Virginia

2. Comparable #2 4/14 390 2005 $67,849,860 $173,974Stafford, Virgnia

3. Comparable #3 6/14 240 2003 $42,265,000 $176,104Ellicott City, Maryland

4. Comparable #4 8/14 88 2011 $15,000,000 $170,455

Pasadena, Maryland

Total/Average: -- 909 -- $183,314,860 $201,667


Washington, DC


3. Comparable #3 4/14 240 2005 $56,296,320 $234,568Silver Spring, Maryland

4. Comparable #4 5/14 85 2006 $40,000,000 $470,588Arlington, Virginia




Total/Average: -- 1,516 -- $742,796,320 $489,971







Washington Metropolitan Area2014 Through August





GARDEN APARTMENTS1. Comparable #1 6/13 20 461 0 $38,000,000 $89,412 $89,412 $44

Falls Church, VA

2. Comparable #2 6/13 40.25 296 0 $9,070,000 $30,642 $30,642 $5Manassas Park, Virginia

3. Comparable #3 6/13 7.79 132 0 $4,245,000 $32,159 $32,159 $13

Fredericksburg, Virginia

HIGH-RISE/MID-RISE APARTMENTS1. Comparable #1 1/13 0.12 60 9 $13,000,000 $216,667 $254,902 $2,508

Bethesda, Maryland

2. Comparable #2 1/13 0.50 82 0 $20,100,000 $245,122 $245,122 $916Washington, DC

3. Comparable #3 1/13 3.14 461 77 $29,276,720 $63,507 $76,241 $214Tysons Corner, Virginia 1/

4. Comparable #4 1/13 5.47 669 135 $26,816,418 $40,084 $50,218 $113Tysons Corner, Virginia


6. Comparable #6 3/13 4.52 549 0 $27,000,000 $49,180 $49,180 $137Reston, Virginia


8. Comparable #8 5/13 0.43 225 0 $24,500,000 $108,889 $108,889 $1,312Bethesda, Maryland

9. Comparable #9 8/13 6.90 366 50 $18,000,000 $49,180 $56,962 $60Rockville, Maryland

10. Comparable #10 12/13 6.00 360 10 $22,500,000 $62,500 $64,286 $86Alexandria, Virginia

1/ Includes 7,000 SF of planned retail



TABLE 3.24SUMMARY OF MULTIFAMILY LAND SALES

Washington Metropolitan Area | 2013

SALE PRICE PER UNIT

SALE PRICE PER MARKET RATE

UNITS ONLY

SALE PRICE PER GROSS SQ. FOOT

PROJECT NAME/LOCATIONDATE OF

SALEPARCEL SIZE

(ACRES)

TOTAL # OF PLANNED

UNITS

AFFORDABLE DWELLING UNITS (ADU'S/ MPDU'S)

TOTAL SALE PRICE




GARDEN APARTMENTS1. Comparable #1 1/14 11.38 310 0 $12,400,000 $40,000 $40,000 $25

Linthicum, Maryland

2. Comparable #2 3/14 8.11 248 38 $11,440,000 $40,000 $54,476 $32Hanover, Maryland

3. Comparable #3 7/14 NA 212 0 $6,500,000 $30,660 $30,660 NA

Odenton, Maryland

HIGH-RISE/MID-RISE APARTMENTS1. Comparable #1 1/14 8.40 304 38 $9,500,000 $31,250 $35,714 $26

Germantown, Maryland

2. Comparable #2 2/14 0.50 30 3 $14,500,000 $483,333 $537,037 $666Bethesda, Maryland

3. Comparable #3 4/14 4.68 282 0 $26,500,000 $93,972 $93,972 $130Vienna, Virginia

4. Comparable #4 4/14 6.18 279 14 $22,500,000 $80,645 $84,906 $84Arlington, Virginia


6. Comparable #6 5/14 22.90 800 0 $26,500,000 $33,125 $33,125 $27Rockville, Maryland

7. Comparable #7 5/14 10.90 296 0 $8,500,000 $28,716 $28,716 $18Laurel, Maryland


9. Comparable #9 8/14 2.00 NA NA $40,000,000 NA NA $459Arlington, Virginia



TABLE 3.25SUMMARY OF MULTIFAMILY LAND SALES

Washington Metropolitan Area | 2014 Through August

PROJECT NAME/LOCATIONDATE OF

SALEPARCEL SIZE

(ACRES)

TOTAL # OF PLANNED

UNITS

AFFORDABLE DWELLING UNITS (ADU'S/ MPDU'S)

TOTAL SALE PRICESALE PRICE

PER UNIT

SALE PRICE PER MARKET RATE

UNITS ONLY

SALE PRICE PER GROSS SQ. FOOT


BALTIMORE

STATISTICAL

REPORT

4



TABL

E 4.

1KE

Y M

ARKE

T IN

DICA

TORS

FO

R CL

ASS

A RE

NTA

L AP

ARTM

ENTS

SUBM

ARKE

T

Num

ber o

f Uni

ts S

urve

yed

3,53

55,

120

1,42

310

,078

4,63

82,

338

1,09

28,

068

18,1

465,

115

23,2

61

Rent

Lev

els

Face

Ren

t$1

,667

$1,6

85$1

,819

$1,6

98$1

,470

$1,5

90$1

,234

$1,4

73$1

,598

$1,8

61$1

,656

Conc

essio

n as

a %

of F

ace

Rent

s3.

7%1.

1%0.

4%1.

9%0.

9%1.

0%2.

9%1.

2%1.

6%2.

5%1.

8%

Effe

ctiv

e Re

nt$1

,606

$1,6

67$1

,811

$1,6

66$1

,457

$1,5

74$1

,198

$1,4

56$1

,573

$1,8

14$1

,626

Effe

ctiv

e Re

nt p

er S

quar

e Fo

ot$1

.53

$1.6

4$1

.92

$1.6

4$1

.29

$1.5

8$1

.23

$1.3

6$1

.51

$2.0

3$1

.61

Per A

nnum

Eff

ectiv

e Re

nt In

crea

se

- Sin

ce 1

998

4.1%

4.2%

4.7%

4.3%

3.8%

4.8%

3.2%

4.0%

4.2%

NA

4.2%

- Sin

ce 0

9/30

/09

2.3%

3.5%

5.2%

3.3%

3.2%

4.3%

2.9%

3.5%

3.4%

3.8%

3.5%

- Sin

ce 0

9/30

/13

²-4

.2%

2.4%

6.0%

0.6%

4.0%

0.7%

-0.3

%2.

4%1.

4%0.

9%1.

3%

Abso

rptio

n Tr

ends

Mon

thly

Abs

orpt

ion

Pace

Per

Pro

ject

for M

ost R

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eliv

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Mar

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ate

Proj

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(201

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(201

2)

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Sept

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r 201

4

Ove

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312

.8%

9.8%

5.9%

10.3

%2.

7%2.

7%2.

0%2.

6%6.

9%4.

8%6.

4%

Stab

ilize

d 4

4.9%

5.8%

4.6%

5.3%

2.7%

2.7%

2.0%

2.6%

4.0%

2.0%

3.6%

Vaca

ncy

Sept

embe

r 201

3

Ove

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313

.8%

18.6

%16

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16.6

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Stab

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2.7%

3.8%

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5.7%

4.2%

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Supp

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3,43

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388

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10

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107

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2,83

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845

515

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81,

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6,85

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11,8

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BALTIMORE STATISTICAL REPORT



TABLE 4.2KEY MARKET INDICATORS FOR INVESTMENT GRADE CLASS A RENTAL APARTMENTS

Selected Submarkets | City of Baltimore, Maryland 1

Third Quarter 2014

Number of Units Surveyed 3,264 1,851 5,115Rent Levels

Face Rent $1,626 $2,275 $1,861Concession as a % of Face Rents 2.8% 2.2% 2.5%Effective Rent $1,580 $2,226 $1,814Effective Rent per Square Foot $1.85 $2.33 $2.03Per Annum Effective Rent Increase

- Since 09/30/09 3.5% 4.2% 3.8%- Since 09/30/13 ² 1.3% 0.3% 0.9%

Vacancy September 2014Overall 3 3.6% 6.9% 4.8%

Stabilized 4 2.0% 2.1% 2.0%Vacancy September 2013

Overall 3 5.5% 23.3% 12.1%

Stabilized 4 4.0% 3.9% 4.0%Absorption Trends

Monthly Absorption Pace Per Project for Most Recently Delivered Market-Rate Projects 9 19 --(Year of Most Recently Marketed Project) (2013) (2013)

Supply Projections# of Market Rate Units Under Construction & AvailablePlus Planned That Are Likely to Be Delivered

in the Next 36 Months 5 4,156 1,209 5,365For Comparison

at 9/30/2013 2,364 967 3,331

1 Includes low-rise and garden style apartments, mid-rise apartments, high-rise apartments and warehouse conversions.2 Excludes projects that were not actively marketing at date of previous survey, i.e. same project/unit price comparison.3 Includes actively marketing projects.4 Excludes actively marketing projects.5 See list of under construction and planned projects on Tables 4.5 and 4.6. Includes conversions.See list of under construction and planned projects for the southern suburbs in Section 3 of the report on Tables 3.16 and 3.17. Does not account for attrition.



SUBMARKET

DOWNTOWN MARKET INDICATOR

FELLS POINT/ INNER HARBOR TOTAL- BALTIMORE CITY





1. Hanover Brewers Hill 387 12/12 18Baltimore, Maryland

2. Union Wharf 253 1/13 13Baltimore, Maryland

3. Metro Crossing NA 2 2/13 NA 2

Owings Mills, Maryland4. Marketplace at Fells Point 76 9/13 6

Baltimore, Maryland5. The Gunther 154 9/13 13

Baltimore, Maryland6. 101 Ellwood 92 9/13 8

Baltimore, Maryland7. The Lenore 64 2/14 9

Baltimore, Maryland8. Jefferson Square at Washington Hill 19 6/14 6

Baltimore, MarylandTotal: 1,045 -- 12

1 Includes market rate units only.2 Property did not participate in our survey.Source: Delta Associates, 500 Montgomery St., Suite 600, Alexandria, VA 22314. Phone: (703) 836-5700.Last update: 9/2014

UNITS ABSORBED

159

281

440

1,584

162

140

102

TABLE 4.3

OVERALL MONTHLY LEASE-UP PACE

Baltimore & Northern Suburbs, Maryland | Third Quarter 2014ACTIVELY MARKETING RENTAL APARTMENT PROJECTS

ABSORPTION SUMMARY

DATE MARKETING BEGAN

COMP. #

250

300

PROJECT NAME/LOCATION TOTAL UNITS 1




TABLE 4.4ABSORPTION SUMMARY

RECENTLY STABILIZED APARTMENT PROJECTS

1. Red Run Apartments - Phase II 4/03 9/04 17 13Owings Mills, Maryland

2. The Reserve at Stonegate 7/04 8/06 25 9Woodlawn, Maryland

3. Brookside Commons - Phase II 4/05 8/06 16 3Owings Mills, Maryland

4. Greenwich Place at Town Center 6/06 6/09 36 9Owings Mills, Maryland

5. The Excalibur (frmly.Gallery at Avalon) 3/07 6/09 26 6Pikesville, Maryland

6. The Renaissance & Jazz at the Quarter 3/09 3/11 24 18Towson, Maryland

7. Towson Promenade 5/09 9/11 27 14Towson, Maryland

8. The View at Mill Run 6/11 12/13 30 13Owings Mills, Maryland

9. The Riverside Apartments 4/12 2/13 10 21Aberdeen, Maryland

10. Mill. No. 1 3/13 8/14 18 5Baltimore, Maryland

11. 1901 South Charles 8/12 12/13 16 11Baltimore, Maryland

12. Groveton Green 9/12 9/13 12 25Owings Mills, Maryland

13. Arbors at Baltimore Crossroads 8/11 5/14 33 11White Marsh, Maryland

Total Garden: -- -- 290 11

1. The Standard 2/03 6/04 16 13Baltimore, Maryland

2. Saratoga Court 9/03 12/04 15 5Baltimore, Maryland

3. Centerpoint (New Tower & Eutaw St.) 4/04 8/06 28 12Baltimore, Maryland

4. Symphony Center 1/05 8/06 20 7Baltimore, Maryland

5. Spinnaker Bay 4/05 8/06 16 20Baltimore, Maryland

6. Townes at Harvest View 4/05 3/06 12 7Reisterstown, Maryland

7. Camden Court 6/05 6/07 24 9Baltimore, Maryland

8. Crescent at Fells Point (Swan's Wharf) 7/06 11/08 29 9Baltimore, Maryland

9. The Zenith 5/07 8/09 28 7Baltimore, Maryland

10. The Eden 5/07 11/09 31 9Baltimore, Maryland

11. Domain Brewers Hill 12/08 5/10 19 9Baltimore, Maryland

12. 39 West Lexington 1/08 8/10 32 6Baltimore, Maryland

13. Professional Arts Building 2/09 12/10 22 4Baltimore, Maryland

14. The Fitzgerald 4/10 9/11 17 16Baltimore, Maryland

15. Palisades of Towson 8/10 12/12 28 13Towson, Maryland

16. McHenry Row 9/11 2/13 18 14Baltimore, Maryland

17. 1111 Light Street 5/12 9/13 17 5Baltimore, Maryland

18. 521 St. Paul Street 8/13 5/14 10 7Owings Mills, Maryland

Total High-Rise: -- -- 382 9


DATE STABILIZED


COMP. # PROJECT NAME/LOCATION TOTAL UNITS 1

219

216

69

Last update: 9/2014

3,576

280

87

252

270

221

180

Source: Delta Associates, 500 Montgomery St., Suite 600, Alexandria, VA 22314. Phone: (703) 836-5700.

1 Includes market rate units only.

93

365

48

332

191

181

90

178

375

HIGH-RISE

147

376

84

226

Baltimore & Northern Suburbs, Maryland | 2003 -Third Quarter 2014# OF MONTHS MARKETING

250

212

202

3,210

77

315

324

137

357

LOW-RISE

432




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TABL

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MM

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OF

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Yes

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N/A

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Yes

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Yes

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Balti

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--

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6/20

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Com

para

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Long

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Pip

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s of:

Balti

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CLASS A GARDEN

1. Comparable #1 2/13 216 2003 $44,800,000 $207,407Annapolis, Maryland

2. Comparable #2 4/13 208 1989 $31,900,000 $153,365

Pikesville, Maryland

Total/Average: -- 424 -- $76,700,000 $180,896

CLASS A MID-RISE/HIGH-RISE

1. Comparable #1 11/13 146 2002 $18,400,000 $126,027Baltimore, Maryland

Total/Average: -- 146 -- $18,400,000 $126,027






TABLE 4.8SUMMARY OF CLASS A APARTMENT BUILDING SALES

Baltimore Metropolitan Area2013






CLASS A GARDEN

1. Comparable #1 6/14 240 2003 $42,265,000 $176,104Ellicott City, Maryland

2. Comparable #2 8/14 88 2011 $15,000,000 $170,455

Pasadena, MarylandTotal/Average -- 328 $57,265,000 $174,588CLASS A MID-RISE/HIGH-RISENo published information available to date





Phone: (703) 836-5700. Last update: 9/2014

TABLE 4.9SUMMARY OF CLASS A APARTMENT BUILDING SALES

Baltimore Metropolitan Area2014 Through August




PHILADELPHIA

STATISTICAL

REPORT

5



GEOGRAPHIC AREA

Number of Units Surveyed 7,068 3,243 10,311 4,777 15,088

Rent Levels ( Avg. of All Unit Sizes)

Face Rent $1,509 $1,446 $1,489 $2,200 $1,714

Concession as a % of Face Rents 0.9% 2.4% 1.4% 1.0% 0.9%

Effective Rent $1,495 $1,411 $1,468 $2,177 $1,693

Effective Rent per Square Foot $1.46 $1.41 $1.44 $2.28 $1.70


- Since 09/30/09 2.6% 2.2% 2.4% 4.3% 3.0%

- Since 09/30/13 ¹ 2.0% 2.9% 2.3% -0.1% 1.5%


Overall 2 3.3% 2.9% 3.2% 8.9% 5.0%

Stabilized 3 2.4% 2.9% 2.6% 3.6% 2.9%


Overall 2 4.9% 4.7% 4.8% 6.4% 5.2%

Stabilized 3 4.8% 4.7% 4.8% 5.5% 5.0%

1 Excludes projects that were not actively marketing at date of previous survey, i.e. same project/unit price comparison.2 Includes actively marketing projects.3 Excludes actively marketing projects.Source: Compiled by Delta Associates, 500 Montgomery St., Suite 600, Alexandria, Virginia 22314Phone: (703) 836-5700. Last Update: September 2014.

TABLE 5.1KEY MARKET INDICATORS FOR CLASS A RENTAL APARTMENTS

Summary | Philadelphia Metropolitan AreaThird Quarter 2014

MARKET INDICATOR SUBURBAN PENNSYLVANIA

SOUTHERN NEW JERSEY

SUBTOTAL- PHILADELPHIA

SUBURBS

CITY OF PHILADELPHIA

PHILADELPHIA METRO AREA

TOTAL/AVERAGE


PHILADELPHIA STATISTICAL REPORT




Rent Levels

Face Rent $1,484 $1,543 $1,472 $1,509


Effective Rent $1,467 $1,532 $1,458 $1,495



- Since 09/30/09 1.9% 3.8% 1.0% 2.6%

- Since 09/30/13 ² 2.3% 2.9% -0.3% 2.0%


Overall 3 4.9% 2.8% 1.6% 3.3%

Stabilized 4 4.9% 0.9% 1.6% 2.4%


Overall 3 5.1% 4.7% 4.9% 4.9%

Stabilized 4 5.1% 4.7% 4.5% 4.8%

1 Includes walk-up and elevator-served apartments of one to four stories.2 Excludes projects that were not actively marketing at date of previous survey, i.e. same project/unit price comparison.3 Includes actively marketing projects.4 Excludes actively marketing projects.


MONTGOMERY COUNTY

DELAWARE & CHESTER COUNTIES

BUCKS COUNTY

SUBURBAN PENNSYLVANIA


MARKET INDICATOR

TABLE 5.2KEY MARKET INDICATORS FOR CLASS A LOW-RISE RENTAL APARTMENTS 1

Selected Submarkets | Suburban Pennsylvania

SUBMARKET

Third Quarter 2014






Rent Levels

Face Rent $1,557 $1,361 $1,446 $1,703


Effective Rent $1,481 $1,356 $1,411 $1,703



- Since 09/30/09 1.7% 2.6% 2.2% 2.5%

- Since 09/30/13 ² 0.6% 4.7% 2.9% 2.8%


Overall 3 3.0% 2.8% 2.9% 0.9%

Stabilized 4 3.0% 2.8% 2.9% 0.9%


Overall 3 5.0% 4.5% 4.7% 2.4%

Stabilized 4 5.0% 4.5% 4.7% 2.4%

1 Includes garden and low-rise style apartments, mid-rise apartments, high-rise apartments, and warehouse conversions.2 Excludes projects that were not actively marketing at date of previous survey, i.e. same project/unit price comparison.3 Includes actively marketing projects.4 Excludes actively marketing projects.


TABLE 5.3

Selected Submarkets | Southern New JerseyKEY MARKET INDICATORS FOR CLASS A LOW-RISE RENTAL APARTMENTS 1

Third Quarter 2014

MARKET INDICATOR MERCER COUNTYSOUTHERN NEW JERSEY


SUBMARKET

CAMDEN COUNTYBURLINGTON

COUNTY





SUBMARKET

CITY OFPHILADELPHIA

Number of Units Surveyed 4,777

Rent Levels

Face Rent $2,200

Concession as a % of Face Rents 1.0%

Effective Rent $2,177

Effective Rent per Square Foot $2.28


- Since 1988 3.3%

- Since 09/30/09 4.3%

- Since 09/30/13 ¹ -0.1%


Overall 2 8.9%

Stabilized 3 3.6%


Overall 2 6.4%

Stabilized 3 5.5%


for Most Recently Delivered Market-Rate Projects 30

(Year of Most Recently Marketed Project) (2012)


Plus Planned Which are Likely to be Delivered

in the Next 36 Months 4 4,846For Comparison

at 9/30/2013 3,513

1 Excludes projects that were not actively marketing at date of previous survey, i.e. same project/unit price comparison.2 Includes actively marketing projects.3 Excludes actively marketing projects.4 See list of under construction and planned projects on Tables 5.6 and 5.7. Does not account for attrition.Source: Compiled by Delta Associates, 500 Montgomery St., Suite 600, Alexandria, Virginia 22314


TABLE 5.4

City of PhiladelphiaKEY MARKET INDICATORS FOR CLASS A RENTAL HIGH-RISE APARTMENTS

Third Quarter 2014

MARKET INDICATOR




1. Tower Place - Ph. 1 184 12/12 8Philadelphia, Pennsylvania

2. 2116 Chestnut Street 233 2/13 12Philadelphia, Pennsylvania

3. Goldtex Building 78 3/13 4Philadelphia, Pennsylvania

4. The Granary 214 5/13 13Philadelphia, Pennsylvania

5. Icon 138 11/13 15Philadelphia, Pennsylvania

6. The Station at Manayunk 30 1/14 4Philadelphia, Pennsylvania

7. Southstar Lofts 63 2/14 9Philadelphia, Pennsylvania

8. The Croydon 64 4/14 13Philadelphia, Pennsylvania

9. 1900 Arch 66 4/14 13Philadelphia, Pennsylvania

Total: 1,070 -- 10

Source: Delta Associates, 500 Montgomery St., Suite 600, Alexandria, VA 22314. Phone: (703) 836-5700.Last update: 9/2014

TABLE 5.5


City of Philadelphia | Third Quarter 2014ACTIVELY MARKETING RENTAL APARTMENT PROJECTS

ABSORPTION SUMMARY


204

COMP. # PROJECT NAME/LOCATION TOTAL UNITS 1 UNITS ABSORBED

163

1,718

321

227

206

85

149

127

236

1 Includes market rate units only.2 Data for the number of units absorbed was unavailable due to omission of property.




TABLE 5.6ABSORPTION SUMMARY

RECENTLY STABILIZED APARTMENT PROJECTSCity of Philadelphia | Third Quarter 2014

1. 600 on Broad 7/11 2/12 13Philadelphia, Pennsylvania

2. The Commonwealth 9/11 4/12 8Philadelphia, Pennsylvania

3. Penn Treaty Village Pennthouses, Ph. 1 11/11 3/13 8Philadelphia, Pennsylvania

4. 229 Arch 2/12 6/13 13Philadelphia, Pennsylvania

5. The Arch 7/12 2/13 14Philadelphia, Pennsylvania

6. 2040 Market Street 8/12 6/13 26Philadelphia, Pennsylvania

7. 320 Walnut 5/13 12/13 11Philadelphia, Pennsylvania

8. The Sansom 4/13 3/14 8Philadelphia, Pennsylvania

Total High-Rise: -- -- 12

65

1 Includes market rate units only.

Source: Delta Associates, 500 Montgomery St., Suite 600, Alexandria, VA 22314. Phone: (703) 836-5700.Last update: 9/2014

963

104


77

100

126

98

282

111

COMP. # PROJECT NAME/LOCATION TOTAL UNITS 1DATE MARKETING

BEGANDATE

STABILIZED




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No

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423

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200

No

No

No

No

N/A

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NA

NA

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Old

City

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oN

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128

No

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Yes

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Yes

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NA

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NA

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N/A

1442

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No

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36-5

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Las

t Upd

ate

Sept

embe

r 201

4.

City

of P

hilad

elphi

aTh

ird Q

uarte

r 201

4




Total Per UnitCLASS A LOW-RISE APARTMENTS

1. Comparable #1 4/13 216 1991 $29,300,000 $135,648Philadelphia, Pennsylvania

2. Comparable #2 12/13 139 1999 $22,770,000 $163,813Lafayette Hill, Pennsylvania

Total/Average: -- 355 -- $52,070,000 $146,676


Philadelphia, Pennsylvania

2. Comparable #2 10/13 227 2013 $120,000,000 $528,634Philadelphia, Pennsylvania

Total/Average: -- 355 -- $148,500,000 $418,310

Note: Delta Associates no longer provides the name of each project listed above except to appraisal clients of the firm and those who provide this type of transaction data to Delta. If you wish a list of project names and you qualify to receivesame, email your request to: [email protected]: Compiled by Delta Associates, 500 Montgomery St., Suite 600, Alexandria, Virginia 22314.Phone: (703) 836-5700. Last update: 9/2014.


Philadelphia Metropolitan Area2013

Project Name/Location Date of Sale # of Units Year BuiltSale Price




Total Per UnitCLASS A LOW-RISE APARTMENTSNo published information available to date

CLASS A MID-RISE/HIGH-RISEComparable #1 1/14 40 2009 $12,000,000 $300,000Philadelphia, Pennsylvania

Total/Average: -- 40 -- $12,000,000 $300,000

Note: Delta Associates no longer provides the name of each project listed above except to appraisal clients of the firm and those who provide this type of transaction data to Delta. If you wish a list of project names and you qualify to receivesame, email your request to: [email protected]: Compiled by Delta Associates, 500 Montgomery St., Suite 600, Alexandria, Virginia 22314.Phone: (703) 836-570. Last update: 9/2014.


Philadelphia Metropolitan Area2014 Through August

Project Name/Location Date of Sale # of Units Year BuiltSale Price


6EXPLANATION OF

GEOGRAPHIC COVERAGE

AND METHODOLOGY


MARKET AREA COVERAGE

Delta Associates currently surveys Class A garden and high-rise

apartment units in 49. submarkets in the Mid Atlantic Region .

The maps on the following pages depict the geographic areas

covered in this report .

Delta Associates collects data on a majority of the Class A

product in each covered submarket . A total of approximately

300 properties are surveyed by Delta Associates at the close

of each quarter – accounting for approximately 106,000 units .

This is believed to be approximately 8.5% of the estimated

125,000 Class A units existing in the Washington region as of

this publication date .

PRODUCT DEFINITION

“Class A” product is defined by Delta Associates generally

as built in 19.9.1 or later and offering a separate clubhouse,

decorated model units, two bedroom/two bath units, and a

large community amenity package most often including a

fitness center and swimming pool . The tenant pays gas and/

or electric in addition to telephone and cable television . The

projects are typically 200+ units except in submarkets where

quality product is scarce .

INTRODUCTION OF NEW, ACTIVELY MARKETING UNITS

New communities are added to submarket surveys as soon as

they begin pre-leasing units . The overall current asking and

effective rents and rents per square foot of gross leasable area

include these new communities . However, in comparing current

quarter rents to previous year rents, these new communities

are excluded until they have been marketing for one full year .

This is done so as to dilute the impact on rent rate increases

often associated with newly introduced product .

FACE RENT

Face rent is the asking rent for each unit, excluding any

concessions or rent specials given . Delta Associates quotes

the weighted average asking base rent for each sub-market

– the asking rent for a first floor unit without any premiums

for fireplaces, views, etc .

EFFECTIVE RENT

Effective rent deducts from face rent any concessions or

rent specials for any unit type offered at a surveyed project .

Typically, concessions are used selectively to lease weaker

floor plans or surplus units .

STABILIZED VACANCY

“Stabilized Vacancy” as used herein is the rate of “available

units” in stabilized properties . Once a property achieves

9.5% occupancy, it is considered “stabilized” and says in our

pool of stabilized properties even if it falls below 9.5% at a

subsequent reporting date .

We obtain information on “available units” when conducting

our surveys . Obtaining the information this way may produce

several important differences from “vacancy” as reported in

financial statements . Simply stated the difference can be

characterized as:

• Delta’s: Available units to lease

• Financial statement: Economic vacancy

“Available units” is understated compared to “economically

vacant” by our exclusion of units occupied by dead-beat

tenants and units not available for lease, such as employee

units and model apartments . Our occupancy rate is

overstated compared to financial reporting by our exclusion

of economically vacant, on-notice units for which a lease to

METHODOLOGY

AND GLOSSARY



occupy in the future has been signed . As compared to the

“vacancy rate” as used in financial reports, we estimate

that the former reduces our “available units” (vacancy rate)

estimate by about 100 to 150 basis-points and the latter

another 150 to 200 basis-points .

OVERALL VACANCY

“Overall vacancy” is defined to include all physically vacant,

unrented units in all projects surveyed, including those in

actively marketing communities . Therefore, the overall

vacancy figures include new, unrented units still in initial

lease-up .

PLANNING PIPELINE

The planning pipeline includes projects in the advanced

planning stages . This pipeline, as defined here, does not

include all projects being planned . To be included on this list,

a planned community typically would have financing and

approvals in place . Some communities are included if Delta

Associates feels that financing and/or site plan approval are

imminent, but are so note .

EXPLANATION OF GEOGRAPHIC COVERAGE AND METHODOLOGY


SPONSORED BY BOZZUTONORTHERN VIRGINIA LOW-RISE APARTMENT SUBMARKETS

7

56

1

2

3

4

8

9

10

11

SUBMARKETS1 . South and East Fairfax

2 . Arlington/Alexandria

3 . Tysons Corner

4 . Vienna/Merrifield

5 . Fair Oaks

6 . Centreville

7 . Reston/Herndon

8. . East Loudoun County

9. . West Prince William County

10 . East Prince William County

11 . Fredericksburg

Source: ESRI, Delorme, Delta Associates; September 2014

NORTHERN VIRGINIA LOW-RISE APARTMENT SUBMARKETS


SPONSORED BY BOZZUTOSUBURBAN MARYLAND LOW-RISE APARTMENT SUBMARKETS

SUBURBAN MARYLAND LOW-RISE APARTMENT SUBMARKETS

7

5

6

1

2

3

4

8

9

10

11

12


SUBMARKETS1 . Rockville/North Bethesda2 . Gaithersburg3 . Germantown4 . Frederick County5 . Columbia/Howard County6 . North Anne Arundel7 . Annapolis8. . Burtonsville9. . North Prince George’s10 . South Prince George’s11 . Charles County12 . St . Mary’s County


SPONSORED BY BOZZUTOVIRGINIA AND MARYLAND HIGH-RISE APARTMENT SUBMARKETS

7

5

6

1

23

4

8


VIRGINIA AND MARYLAND HIGH-RISE APARTMENT SUBMARKETS

SUBMARKETS1 . Alexandria

2 . Crystal City/Pentagon City

3 . South Arlington

4 . Rosslyn/Ballston Corridor

5 . North and West Fairfax

6 . Bethesda

7 . North Bethesda/Rockville

8. . Silver Spring/Wheaton


SPONSORED BY BOZZUTOWASHINGTON, DC HIGH-RISE APARTMENT SUBMARKETS

7

5

6

1

2

3

4

8


WASHINGTON, DCHIGH-RISE APARTMENT SUBMARKETS

SUBMARKETS1 . Upper Northwest

2 . Upper Georgia Avenue

3 . Columbia Heights/Shaw

4 . Central

5 . Capitol Hill/Riverfront

6 . NoMa/H Street

7 . Northeast

8. . River East


SPONSORED BY BOZZUTOSUBRUBAN BALTIMORE APARTMENT SUBMARKETS

5

3

4

1

2

6


SUBURBAN BALTIMORE APARTMENT SUBMARKETS

SUBMARKETS1 . Annapolis

2 . North Anne Arundel

3 . Columbia/Howard County

4 . W & NW Baltimore County

5 . E & NE Baltimore County

6 . Harford County


SPONSORED BY BOZZUTOBALTIMORE CITY APARTMENT SUBMARKETS

1

2


BALTIMORE CITYAPARTMENT SUBMARKETS

SUBMARKETS1 . Downtown

2 . Fells Point / Inner Harbor


SPONSORED BY BOZZUTOPHILADELPHIA AREA APARTMENT SUBMARKETS

7

5

6

1

2

3

4


PHILADELPHIA AREAAPARTMENT SUBMARKETS

SUBMARKETS1 . Chester Co ./Delaware Co .

2 . Montgomery County

3 . Bucks County

4 . City of Philadelphia

5 . Camden County

6 . Burlington County

7 . Mercer County


SPONSORED BY BOZZUTOPHOTOGRAPHY CREDITS

We would like to thank the following sources for the photography used in this report .

Cover: DSF Group

Halstead Square – The Rockwell, Vienna, VA

Delta Associates’ 2012 Winner of Best Northern Virginia Apartment Community

Page 27: Bozzuto

Crosswinds Annapolis Towne Centre, Annapolis, MD

Page 28: Bozzuto & Abdo Development LLC

Monroe Street Market, Washington, DC

Delta Associates’ 2014 Winner of Best Washington Mid-Rise Apartment Community

Page 29: Bozzuto

Union Wharf, Baltimore, MD

Page 31: Equity Residential

1111 Belle Pre, Alexandria, VA

Page 32: Urban Atlantic LLC & The JBG Companies

Sky House East, Washington, DC

Delta Associates’ 2014 Winner of Best Washington/Baltimore Adaptive Reuse Apartment Community

Page 36: The Donohoe Companies

Gallery Bethesda, Bethesda, MD

Delta Associates’ 2014 Winner of Best Washington/Baltimore Green Apartment Community

Page 37: Obrecht Commercial Real Estate

The Gunther Apartments, Baltimore, MD

Delta Associates’ 2014 Winner of Best Baltimore Mid-Rise Apartment Community

Page 38 (top): Bozzuto

Arbors at Baltimore Crossroads, Baltimore, MD

Delta Associates’ 2012 Winner of Best Baltimore Apartment Community

Page 38 (bottom): Jefferson Apartment Group

Jefferson Pointe at West Chester, West Chester, PA

Delta Associates’ 2012 Winner of Best Philadelphia Apartment Community

Page 39: Greystar

The Granary, Philadelphia, PA

PHOTOGRAPHY CREDITS

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