Big properties to develop with city government involvement makes the Washington DC real estate market as a top 10 "disrupter"
10 Disrupters: A Look at Key Figures Shaping the CRE Industry"), DC Mayor Vincent Gray's initiatives to develop St. Elizabeths East Campus (and maybe Walter Reed Medical Campus) make him a key "disruptor" that can change the national real estate market, in the face of the slight downturn in the metropolitan real estate market because of the Federal Government's budget inaction and disruption within the US House of Representatives, which discourages the GSA from going to Congress with lease proposals in higher cost submarkets in the area.
They're big projects, but I don't know how disruptive they'll be.
Unfortunately, from the standpoint of innovation districts, both properties are disconnected from city that lies outside their lot lines, which reduces the positive spillover benefits that real estate development can generate on neighborhood and district improvement.
Some of the other disrupters listed in the article include:
• the booming college student apartment market (in the DC area, you see this in projects on Rte. 1 in College Park related to the University of Maryland, and in one of the apartment buildings constructed at the Town Center proximate to Prince George's Plaza in Hyattsville, and in two new dorms being constructed on 4th Street NW for Howard University);
• Related Companies, their Hudson Yards project in NYC and other projects;
• a thriving CMBS (commercial mortgage-backed security) market;
• equity available in the market for distressed properties;
• reduction in capital for multiunit housing mortgages guaranteed by FreddieMac and FannieMae;
• the high economic return from sustainability (and the work of Professor Nils Kok);
• health-care/senior related REITs, specifically Ventas.
Separately, the international commercial real estate brokerage CBRE says that DC is the 20th most expensive commercial real estate market in the world ($97.80/s.f. in total occupancy costs), Midtown Manhattan in NYC is 10th ($120.60/s.f.). San Francisco is 22nd ($96.00/s.f.).
Central Hong Kong is #1.