Steve Burns
WMAL.com
WASHINGTON – (WMAL) The D.C. region saw a slight decline in commercial construction from 2016 to 2017, according to a new report from the Metropolitan Washington Council of Governments, highlighting the difficult road still ahead to rebound from the effects of the Sequester and Great Recession.
Commercial construction declined by seven percent in 2017. 144 new buildings came up, totaling 12.7 million square feet of space, also a slight decline from 2016.
“We’re probably about half of the commercial activity that we had, say, in the 2005-2008 timeframe, when we were kind of riding a bubble, so to speak, in commercial and real estate activity,” the Metropolitan Washington Council of Governments’ John Kent told WMAL. “We’re continuing to struggle a bit coming out of the Recession and effects of the Sequester, in terms of commercial construction activity.”
The type of construction that is prevailing today may also pose an issue for job growth. Data centers and warehouses remain popular, but those often mean few jobs going along with them, Kent said. It’s also the reason why building near Metro saw a slight decline.
“That’s more due to land use shifts on what sector is stronger,” he said. “That’s not really indicative of Metro not being attractive.”
Northern Virginia claimed about half of the new construction in the region, also reflecting the growth of data centers in places like Loudoun and Prince William counties.
Retail space continued its steady decline, but as it struggles at the hands of e-commerce, the region is also seeing benefits, Kent said.
“There’s two sides to that coin. One aspect is that we are seeing less retail space construction, but we are seeing a little more in distribution centers and warehousing, because e-commerce relies on that to get their packages to the customer.”
Overall, Kent said the region is still having trouble finding its own footing outside the region’s biggest, but often volatile, job creator.
“Making sure we’re not relying too heavily on the federal presence as a driver of employment, and diversifying our economy, is pretty vital to long-term development and growth.”
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