Summary:
- Multifamily sales in Washington, D.C., hit $646.1 million in Q2, up 950 percent from Q1, according to CBRE.
- Net absorption reached 6,380 units, up from Q1, with Southeast D.C. leading submarkets at nearly 1,200 units.
- The sharp sales increase signals renewed investor confidence in the rental market.
MULTIFAMILY SALES IN Washington, D.C., reached $646.1 million in the second quarter, up 950 percent from $61.6 million in the first quarter, according to CBRE. The surge reflects renewed interest from large investors and greater confidence in market conditions.
PSP Investments' $265.96 million acquisition of the 148-unit Incanto was the largest purchase of the quarter, while its $104.5 million acquisition of the 255-unit The Tides also ranked among the top three, GlobeSt. reported.
Most other fundamentals saw slight improvement. JRK Property Holdings purchased the 283-unit West End 25 for $186 million.
Net absorption reached 6,380 units, more than 2,000 more than in the first quarter, CBRE found. Southeast D.C. led all submarkets with nearly 1,200 units of demand.
Deliveries slowed from 4,675 units to 4,006. Southeast D.C. recorded the highest concentration in the second quarter, with 762 units.
The sharp rise in multifamily sales signals renewed investor confidence in D.C.’s rental market. Moderate rent growth alongside solid absorption and steady occupancy reflects sustained demand. As capital markets stabilize, the region is set for continued activity in the second half of 2025.
Extended-stay hotels remain of interest to investors, though The Highland Group expects conversion activity to slow and 2025 supply growth to stay below the long-term average, as oversupply concerns grow amid rising brand launches.
