The overall vacancy rate has remained stable at 6.4%, an all-time low for the Washington D.C. metro industrial market, according to CBRE’s Northern Virginia Industrial MarketView Q1 2019. The low vacancy rate coupled with the supply-constrained nature of the area has continued to drive up rental rates and asset prices. Elion Partners’ newly expanded industrial portfolio, branded EB Portfolio, has seen an increase in positive net absorption by more than 6 percent. This equates to more than five additional leases signed with tenants who primarily serve in the government contract sector. The EB Portfolio, owned and managed by Elion and Buchanan Partners (“Buchanan”), includes tenants such as Northrop Grumman, Raytheon, Siemens and CACI International.
“With a large portfolio spread across the D.C. metro area, we are able to provide flexibility to tenants across multiple submarkets,” said Andrew Rohacik, Director of Asset Management at Elion Partners.
The Route 28/Dulles North/Dulles South submarkets contributed the most Q1 occupancy gains with 215,641 square feet of positive absorption according to the report. Ongoing investor appetite for industrial product, largely driven by ecommerce, and rising land prices due to data center demand is expected to further drive asset prices and rent growth for the near term.
Elion and Buchanan added an additional 1.6 million square feet, spread across 34 buildings and six locations, to their Washington D.C. metro industrial portfolio in February at an acquisition price of $198.5 million. In August 2017, the joint venture completed a 700,000 square foot acquisition of a similar industrial product type. That acquisition included a 14-building portfolio spread across three locations just off Route 28 in the Washington D.C. Metro area, bringing the total portfolio to over 2.3 million square feet.