The office market in Washington, D.C., is mired in a nasty slump—but apartments are showing no sign of cooling.
The section known as Navy Yard/Capitol South, once one of the city’s grittiest, is undergoing a massive transformation as big developers pile in.
The 500-acre neighborhood is the fifth-busiest submarket in the U.S. for apartment construction, according to RealPage Inc., a maker of property management software. The onetime industrial area has added 2,335 residential units since 2012 and 3,727 more are being built by some of the nation’s largest developers, including the Related Cos., Forest City Realty Trust and Toll Brothers Inc.
“It really has seen tremendous transformation,” said Jay Parsons, vice president at MPF, RealPage’s research division.
Luxury apartments, restaurants and bars dot the area around the Nationals Park baseball stadium, directly south of the Capitol between the Anacostia and Potomac Rivers. Construction is expected to begin soon on a new soccer stadium and two apartment projects with a combined 869 rentals and condos.