Washington, DC (including the Maryland and Northern Virginia Suburbs) offers interesting opportunity for investors. First, the area is enjoying significant federal government hiring right now. Second, the construction of a new metro spur in Northern Virginia suggests whole new areas as likely superior real estate investing opportunities. Third, Northern Virginia has recently one the transfer of Northrup Grumman’s headquarters. The National Harbor area is the winner in a large move of major Department of Homeland Security facilities. And finally, Fort Belvoir was a major winner in the U.S. Department of Defense Base Realignment Commission changes.

In addition, Washington, DC is a historically very highly transient market playing directly into the current housing trends including minority households, credit tightness, the emerging baby boomers, the newly adult echo boomers, and the loss faith in housing as an investment for homeowners.

The combination of the underlying growth drivers and the rapidly emerging demographic trends favoring rental housing is propelling Washington, DC forward in this normally very tight economic times.

Because of this investors have a unique opportunity if they will focus on the right kinds of projects. What are the right kinds of projects? In our opinion the following projects standout:

* Smaller complexes and condominiums begging at 40 to 60 apartments and down.
* Projects near or along major thoroughfares and in great neighborhoods.
* Projects near subway stops and on mass transit routes.
* Condominiums and projects that have been devalued by recent market events. Read the rest of this entry »