Slowdown Hits Once-Booming D.C. Corridor

After years of growth and development, the suburban Washington D.C. Dulles corridor is experiencing a development slowdown.

1 minute read

November 17, 2007, 7:00 AM PST

By Nate Berg


"The corridor has seen job growth of 24 percent over the past seven years."

"But now this fast-growing suburban business hub is headed for a pause."

"With federal contracting slowing from its recent boom, and as the national and regional economies soften, the current wave of construction projects is likely to leave empty buildings. Few new office projects are expected to get started in the near future, as developers focus on finding tenants. The process is likely to take at least two years, given historical trends, according to developers and brokers."

"The last time Northern Virginia's commercial real estate market slowed was after the tech bust of 2001, when dozens of dot-com start-ups went out of business. But that downturn was relatively short lived. After the terrorist attacks of Sept. 11, 2001, the federal government began pouring money into national security programs, with many of those dollars going to contractors in Northern Virginia."

"The Dulles area's relatively inexpensive real estate became a draw for many businesses. In the latest quarter, for example, rents for the Dulles area were $29.81 per square foot, compared with $47.94 in downtown Washington."

Monday, November 12, 2007 in The Washington Post

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