Wednesday, October 21, 2009

Washington DC: An Oasis of Prosperity for Residential and Commercial

There have been many whispers about purported hoards of capital sitting on the sidelines, waiting for the perfect opportunity to spring forth with investment frenzy. The question is when and where? For the answer, go no further than CNN.

What is growing at a never before seen rate?

Where are budgets boldly expanding in the face of economic calamity?

What may be taking over 1/6th of the economy?

Why the Federal Government of course. And its central hub and router, Washington DC, looks to prosper in light of this action.

In-fact, it already has.

As Globe St.’s Erika Morphy reported, Washington DC condo sales are “on a rise after a two year trough”. There were 686 new unit sales in Q3 alone, the highest volume in two years. This represents a greater trend, as sales in the past 12 months increased 45% over the prior 12 month period.

To put Washington DC’s growth in perspective, U.S. foreclosures just went up a record 23% from Q3 of last year and 5% from the previous month. As CNN states “this quarter was the worst 3 month period since the great depression”. To top it all off unemployment has gone up to 9.8% and is expected to hit at least 10.5%.

Washington DC’s unemployment stands at 6.2%, one of the lowest percentages of all U.S. metro areas and was recently named the top magnet city for young professionals. Combine this with its growing employment opportunities through government expansion and it is easy to see why Washington DC is a striking investment opportunity.

Companies are even observing increased sales activity in one of the most bemoaned sectors of the U.S. economy: Commercial Real Estate. The Pitango Gelato, a retail condo building located in Logans Circle, was just reported to have been sold for the highest price per square foot that the selling broker has seen to date. This would seem shocking due to the current state of affairs, but given the context of the building being located in the Washington DC area, the situation makes sense.

As President Reagan once said, “the closest thing to immortality we will ever see is a Government program”. This sentiment rings just as true today as it did all those years ago. In the midst of even the harshest economic turmoil, the one place of unending growth will remain the government and its seat of power, Washington DC.

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