February Rent Check

The latest issue of Rent Check, our monthly newsletter, goes out today. Let us know what you think!

DC Apartment Trends from Delta, Part II: The Renter’s View

In Part I of our interview with Delta Associates VP Grant Montgomery, we shared the latest numbers on the DC rental market and captured the landlord’s point of view. Now we shift to what it all means for renters.

Despite lower vacancy rates than much of the rest of the country, the DC region remains a renter’s market, according to Montgomery. The boom in new apartment property construction over the last couple years has meant good things for renters:

1. Lower prices and aggressive rental incentives. “There are enough [new buildings] out there that rents are still decreasing” and many landlords are aggressively using “concessions” to attract renters. The percents of rents landlords are taking off through incentives are “among the highest we’ve ever seen,” according to Montgomery. In some cases, “you’re getting 3 months off your rent.” And in extreme cases “you might be getting 3 months and a year’s free parking.” If you are really value-focused, notes Montgomery, you can likely get better deals in lower-end apartments “because they’re facing pressure from above.” And if you want something new, “you’re going to get a deal there. For not much more [in price], you might be able to move up [in quality] for a year or two.”

2. Lots of options. Renters now have “plenty of [buildings] to choose from.” And the options aren’t just greater in number, they’re greater in quality. That’s because, as Montgomery notes, “a lot of the [new properties] built over the last year or two were originally built as condos but instead have come to market as rentals. So you’re getting a significantly higher quality product than you would have gotten 5 years ago—nicer cabinets, nicer appliances, etc.”

To find the best deals, Montgomery suggests checking out areas where a lot of new properties have been built recently. “If you go to a neighborhood, and there are 3 new apartment projects trying to fill up for the very first time, that’s good for you. That situation – where you’ve got buildings competing with each other that have to fill up – is very different from a building that’s completely full and they’re just turning a certain percentage of units.”

Especially “if you’re willing to make the tradeoff between rent and location, you can really get some amazing deals -- like 20% to 30% concessions” – and often you’re not that far away from the much more expensive parts of the city. Which areas in DC fall into this camp? Montgomery suggests looking at DC’s Capital Riverfront, the South Arlington area (along Route 7 and Columbia Pike), and North Bethesda along Rockville Pike.

But if you want to take advantage of low rental prices and landlord giveaways, Montgomery’s research suggests that you should act now. “The spigot’s about to get turned off” in terms of new apartment buildings … “and that will rather quickly change who’s on top of the market. Who has negotiating power will change over the next 36 months quite significantly.”

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Read Part I of our interview with Grant Montgomery, where he discusses the DC apartment market from the landlord’s perspective.

Are you a local real estate expert interested in sharing insights and tips with thousands of renters, landlords, and other Urban Igloo followers? We’d love to interview for our blog and newsletter! Contact us today at info@urbanigloo.com.

DC Chamber Spotlight on Urban Igloo

The DC Chamber of Commerce interviewed Urban Igloo's Rick Gersten recently and featured us in their latest newsletter. Here's an excerpt from the interview:

Why did you start your business?
There was a void in DC in the residential rental market for companies which specialize in apartment rentals and are performance based. Urban Igloo offers all of that plus the professionalism that I'm familiar with from my 30 years of commercial brokerage and development experience.

Read the full interview here ...

Neighborhood Expert Interview: Logan Circle

Few DC neighborhoods have transformed as much in recent decades as Logan Circle. Tim Christensen has not only lived through Logan's biggest changes, he's played an active role in them. Tim is a long-time member, and current vice president, of the Logan Circle Community Association (LCCA). He features prominently in a recent Washington Post story on Logan Circle ("Trendy now, but not by accident"), which covers the LCCA's role in ridding the neighborhood of prostitution and drug dealing. Tim was kind enough to talk with Urban Igloo about his ever-changing neighborhood.

Thanks for joining us, Tim. Please tell us a little about yourself. How long have you lived in Logan Circle?

Walter and I bought our first house together, on the 1300 block of Corcoran Street, in 1989. Prior to that, Walter owned a unit in the Iowa at 13th and O, and I was living in a group house up by the National Cathedral. We didn’t know at the time whether the neighborhood trajectory was headed up or down; we just knew we could afford to live here.

The first few years in Logan were tough. D.C. was battered by the crack cocaine epidemic, safety was a huge concern, and our property lost value over the first few years. Man, did that ever change. When we sold our property on Corcoran Street in 2003 to move into the new Icon building at 13th and O, it went for three times the original purchase price. Even though we had put in a couple hundred thousand in upgrades, we made out very well.

What are the biggest changes you've seen in the neighborhood over the last 20 years?

The issues that concern us have changed dramatically. During the 90s (and for many years prior to that), the big issues were street crime, drug dealing, and prostitution. While public safety will always be an issue, the neighborhood has largely regained control through the efforts of the Advisory Neighborhood Commission, the Metropolitan Police Department, the Logan Circle Community Association (LCCA), and lots of concerned, committed residents. The issues today include promoting the arts and small businesses in the fragile economy, historic preservation and zoning, and—you could ask the mayor about this—parking! When Mayor Fenty visited with the LCCA membership last fall, the majority of questions were around parking issues.

What are the best things about living in Logan today?

The neighborhood has evolved into a village where neighbors greet one another on the street, watch out for each other, and hang out at all the great retail destinations, art galleries, theatres, bars, restaurants—and the Whole Foods Market at 14th and P Street. We would be stuck without our Whole Foods. But you can also walk from this urban Oasis to downtown, the Mall, Dupont, and U Street in a matter of minutes and hop on the Red, Green, Yellow, Orange, and Blue lines to get anywhere else.

What types of people live in Logan Circle?

All types! In Logan Circle we celebrate diversity in all of its manifestations. We are racially, ethnically, and culturally rich and varied. The neighborhood is full of places of worship of all beliefs and we also have lots of room for non-believers. And like our neighbor to the west, Dupont Circle, we are supportive of all sexual orientations and gender identities—gay, lesbian, bi, trans, and every other variation. One of our coolest points of diversity is age. I’m sort of in the middle—well, getting a little up there at 53—and while some of my neighbors and friends are still growing into their mid 20s, two of my best friends are octogenarians: Bob is 84 and Paulette is 87!

What if any trends are you seeing in the neighborhood's rental market?

The most noticeable trend is the availability of condos as rentals. We’ve known a number of owners who’ve taken new jobs in other cities and don’t want to try to sell because the market has been so low. So they rent their units instead. We have four rentals in our 19-unit building right now.

You told the Post that you "want people to come here for the arts, and have the dining scene serve as an extension of that visit." What are you doing to make the area more of an arts district?

We want to do everything we can to brand Logan Circle as an arts district. Much as we love U Street and Adams Morgan, we do not want to imitate them. The 14th Street corridor is a designated arts overlay district, which is officialese meaning that a percentage of all development (or redevelopment) is given over to spaces housing the arts, as broadly defined. Unfortunately, we’ve not been very successful getting the D.C. Office of Planning to enforce the existing statute, so while the concentration of arts venues peaked around 2000 and has declined somewhat since, the number of bars and restaurants continues to grow. We’ve lost one prominent gallery, G Fine Art, already, and others are rumored to be on their way out. At the same time, it seems hardly a month goes by when we don’t see a new bar/restaurant going in.

Last year a small group of committed locals affiliated with the Mid City Residents Association, which is concentrated in the 1400 block of Q Street, was charged by the Advisory Neighborhood Commission to review the status of the arts overlay and develop recommendations for the District Office of Planning. They held a series of public hearings during the summer. The final report was adopted by the ANC and LCCA and submitted to the OP in the fall. While the report recommends some revisions to the arts overlay provision that community members felt would boost the arts presence in the neighborhood, the group also recognized that the “25 percent rule,” which theoretically limits the amount of bar/restaurant/entertainment frontage on a given block to 25 percent of the total, had not been reinforced and really did not need to be reinforced. After all, theatergoers and gallery patrons do need to eat and deserve a variety of choices. So while we’re redoubling efforts to support the arts, we’re also supportive of the food venues coming into the neighborhood. But in my mind, the arts should come first and the rest viewed as support services. That’s why I made that statement in the Post.

Please share some of your favorites:

- Favorite bar: We adore Cork Wine Bar. It’s great any night for a glass of wine or a flight of three tastings, and the small plates are delicious. I like the lounge at the Washington Plaza for a quiet drink with colleagues or friends. You can get a glass of fine wine there and the atmosphere is both international and serene. 1409 Playbill and Stoneys are favorite neighborhood destinations. And I understand Church Key (above Birch and Barley) is really great, especially for beer lovers, but we haven’t been yet.

- Favorite upscale restaurant: We go to Posto, little sister of downtown’s Tosca, a lot. The salads, pasta, and pizzas are all great. It’s often full during prime dining hours, but you can usually squeeze in at the bar. It’s also really convenient for dinner before an evening at Studio Theatre. There’s a bunch of new upscale restaurants on 14th but I haven’t had a chance to try all of them yet.

- Favorite cheap restaurant: Stoneys! The super grilled cheese, barbeque beef, chilidogs, crab cakes, and meatloaf sandwich are all excellent. On the (somewhat) healthier side, the Caesar and Greek salads are delicious. And the fries are great.

- Favorite place to shop: Universal Gear has great menswear, especially casual stuff. Timothy Paul Carpets and Timothy Paul Bedding and Home have meant we don’t need to go to New York anymore for fine rugs, fabric, and linens. Is there a limit on favorites? We love Home Rule for kitchen stuff (and the greatest window displays) and Pitango for superb gelato and coffee. All the art galleries are great. Finally, the Written Word is as good as it gets in terms of fine stationers.

- Favorite coffee shop: Caribou. It has great outdoor space for people watching.

- Favorite area to walk around: Logan Circle Park and the 1300 blocks of Rhode Island and Vermont Avenues. Logan Circle Park was rededicated a few years ago and is now a destination for picnics, badminton, croquet, and lazy afternoons on a blanket with a book in the shadow of General John Logan (a great guy, by the way, and the father of the federal Memorial Day holiday). Logan Circle itself and the grand avenues are home to the most stunning examples of 19th century Victorian residential architecture in all of D.C. That stretch of Vermont Avenue also includes the Mary McLeod Bethune house, former home of the great educator and civil rights leader and former headquarters of the National Council of Negro Women. Add to that the fact that there used to be a home for aged Confederate army vets just a few doors up that flew the Confederate flag out front and you’ve got a potent example of American history right here in Logan Circle!

- Favorite DC blog: There are so many! I rely on the big ones like DCist and Bisnow for events and “high society” info, but I like the little ones even better, particularly 14th and You, Prince of Petworth, Borderstan, and Philippa Hughes’s Pinkline Project. And Mark Wellborn’s UrbanTurf DC is a good one for those interested in real estate.

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Read last month’s interview with blogger Andrew Wiseman of Columbia Heights.

Are you a blogger or leader in your neighborhood? Share your expertise with thousands of DC area readers of our newsletter and blog. Contact us today at info@urbanigloo.com.

Mount Vernon on the Rise

Referred to as what used to be an "urban wasteland," Mount Vernon Triangle has undergone massive changes and continues to do so. In its recent article "From seedy to sought-after: D.C.'s Mount Vernon Triangle becoming urban village," the Washington Post notes the following:

- In the past six years, "the housing inventory in Mount Vernon Triangle has grown from about 500 residential units to 2,000, effectively quadrupling the population of the neighborhood."

- Safety has become a priority. Police officers patrol Mount Vernon Triangle's streets Thursday, Friday and Saturday nights, monitoring for any suspicious activity.

- Restaurants that already have locations in other DC neighborhoods, such as Buddha Bar and Henry's Soul Cafe, are opening up branches in Mount Vernon Triangle.

- The DC streetcar--a project still in the planning stages for K Street and already in the construction phase on H Street--is coming to Mount Vernon Triangle.

Like many other areas, Mount Vernon Triangle is not immune to the effects of the recession on development. "There are still seven large empty parcels that are all spoken for, but plans for them have been put on hold [...] The lack of new inventory and continued demand will result in higher [housing] prices in the coming months."