THE ECONOMY THERE IS PLENTY OF JOB GROWTH United States Net Change in Jobs

800

600 145,000

400

200

0

-200

INTHOUSANDS -400

-600

-800

-1000 Jun-03 Jun-04 Jun-05 Jun-06 Jun-07 Jun-08 Jun-09 Jun-10 Jun-11 Jun-12 Jun-13 Jun-14 Jun-15 Jun-16 Jun-17 Jun-18 Jun-19 Dec-02 Dec-03 Dec-04 Dec-05 Dec-06 Dec-07 Dec-08 Dec-09 Dec-10 Dec-11 Dec-12 Dec-13 Dec-14 Dec-15 Dec-16 Dec-17 Dec-18 Dec-19

Source: U.S. Bureau of Labor Statistics, Sage Policy Group; February 2020. NONFARM EMPLOYMENT BY INDUSTRY United States | 12 Months Ending December 2019

Education and Health Services 647

Professional and Business Services 397

Leisure and Hospitality 388

Government 161

Construction 151

Trade, Transportation, and Utilities 125

Financial Activities 122

Other Services 80

Manufacturing 46

Information 12

Mining and Logging -21

-100 0 100 200 300 400 500 600 700 IN THOUSANDS

Source: U.S. Bureau of Labor Statistics, Sage Policy Group; February 2020. NONFARM EMPLOYMENT BY INDUSTRY Area | 12 Months Ending December 2019

Professional and Business Services 18,200

Leisure and Hospitality 18,100

Education and Health Services 6,900

Government 3,000

Mining, Logging, and Construction 3,000

Financial Activities 1,800 Washington metro area total: +52,600; +1.6% Manufacturing 1,800 U.S. total: +2,108,000; +1.4% Trade, Transportation, and Utilities 1,500

Other Services 100

Information -1,800

-5,000 0 5,000 10,000 15,000 20,000

Source: U.S. Bureau of Labor Statistics, Sage Policy Group; February 2020. EMPLOYMENT GROWTH 25 Largest Metro Areas | 12 Months Ending December 2019

Dallas/Fort Worth Orlando San Antonio Phoenix Seattle Houston Charlotte Atlanta Tampa San Diego Denver San Francisco Riverside/San Bernardino Portland, OR Baltimore Washington 1.6% Miami Los Angeles Boston St. Louis New York Philadelphia Chicago Minneapolis-St. Paul Detroit 0.0% 0.5% 1.0% 1.5% 2.0% 2.5% 3.0% 3.5% 4.0%

Source: U.S. Bureau of Labor Statistics, Sage Policy Group; February 2020. UNEMPLOYMENT RATE 25 Largest Metro Areas | December 2019

Philadelphia Phoenix Detroit Los Angeles Houston Riverside-San Bernardino New York St. Louis Chicago Charlotte Minneapolis-St. Paul Dallas/Fort Worth United States Baltimore San Diego = 3.5% San Antonio Portland Seattle Atlanta Washington 2.6% Tampa Orlando Denver San Francisco Miami Boston 0% 1% 2% 3% 4% 5%

Source: U.S. Bureau of Labor Statistics, Sage Policy Group; February 2020. GROWTH IN WAGES AND SALARIES United States

4.0%

3.5%

3.0%

2.5%

MONTH MONTH % CHANGE 2.0% 2.9% 12 -

1.5%

1.0% Q4 2002 Q2 2003 Q4 2003 Q2 2004 Q4 2004 Q2 2005 Q4 2005 Q2 2006 Q4 2006 Q2 2007 Q4 2007 Q2 2008 Q4 2008 Q2 2009 Q4 2009 Q2 2010 Q4 2010 Q2 2011 Q4 2011 Q2 2012 Q4 2012 Q2 2013 Q4 2013 Q2 2014 Q4 2014 Q2 2015 Q4 2015 Q2 2016 Q4 2016 Q2 2017 Q4 2017 Q2 2018 Q4 2018 Q2 2019 Q4 2019

Source: U.S. Bureau of Labor Statistics, Sage Policy Group; February 2020. RETAIL SALES United States

$550

$500

$450

$400

$350 IN BILLIONS

$300

$250

$200 Jun-01 Jun-02 Jun-03 Jun-04 Jun-05 Jun-06 Jun-07 Jun-08 Jun-09 Jun-10 Jun-11 Jun-12 Jun-13 Jun-14 Jun-15 Jun-16 Jun-17 Jun-18 Jun-19 Dec-00 Dec-01 Dec-02 Dec-03 Dec-04 Dec-05 Dec-06 Dec-07 Dec-08 Dec-09 Dec-10 Dec-11 Dec-12 Dec-13 Dec-14 Dec-15 Dec-16 Dec-17 Dec-18 Dec-19

Source: U.S. Census Bureau, Sage Policy Group; February 2020. CONSUMER PRICE INDEX: ALL ITEMS LESS FOOD & ENERGY United States

3.0%

2.5%

2.0%

1.5% 2.2%

MONTH MONTH % CHANGE 1.0% 12 -

0.5%

0.0% Jun-01 Jun-02 Jun-03 Jun-04 Jun-05 Jun-06 Jun-07 Jun-08 Jun-09 Jun-10 Jun-11 Jun-12 Jun-13 Jun-14 Jun-15 Jun-16 Jun-17 Jun-18 Jun-19 Dec-00 Dec-01 Dec-02 Dec-03 Dec-04 Dec-05 Dec-06 Dec-07 Dec-08 Dec-09 Dec-10 Dec-11 Dec-12 Dec-13 Dec-14 Dec-15 Dec-16 Dec-17 Dec-18 Dec-19

Source: U.S. Bureau of Labor Statistics, Sage Policy Group; February 2020. 10-YEAR TREASURY CONSTANT MATURITY RATE United States

16%

14%

12%

10%

8%

6%

4%

2%

0% Jan-63 Jan-65 Jan-67 Jan-69 Jan-71 Jan-73 Jan-75 Jan-77 Jan-79 Jan-81 Jan-83 Jan-85 Jan-87 Jan-89 Jan-91 Jan-93 Jan-95 Jan-97 Jan-99 Jan-01 Jan-03 Jan-05 Jan-07 Jan-09 Jan-11 Jan-13 Jan-15 Jan-17 Jan-19

Source: Board of Governors of the Federal Reserve System, Sage Policy Group; February 2020. MANUFACTURING ON THE DECLINE Institute of Supply Management: Purchasing Managers Index (PMI)

65 50.9 60

55 ECONOMY EXPANDING EXPANDING

50

45

40 ECONOMY

CONTRACTING CONTRACTING 35

30 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019 2020

Source: Institute of Supply Management; Quandl.com, Sage Policy Group; February 2020. FEDERAL DEFICIT AS PERCENT OF GDP United States

4 Surpluses 2 Over the 2021–2030 period, deficits are projected to average 0 4.8% of GDP, totaling $13.1 -2 trillion.

-4 1969-2018 Avg.: 2.9% 1970-2019 Average: Over the past 50 -3.0% years, deficits -6 2021-2030 Deficits Average: averaged just 3.0% -4.8% o f G D P. -8

-10 1970 1972 1974 1976 1978 1980 1982 1984 1986 1988 1990 1992 1994 1996 1998 2000 2002 2004 2006 2008 2010 2012 2014 2016 2018 2020 2022 2024 2026 2028 2030

Source: Congressional Budget Office, Sage Policy Group; February 2020. TOTAL HOUSEHOLD DEBT United States

$15 Mortgage HE Revolving Auto Loan Debt balances have $12 Credit Card been rising steadily Student Loan for 5 years and are Other now $1.3 trillion $9 higher than the previous peak in Q3 2008 of $12.7 $6 trillion. IN TRILLIONS IN

$3 Overall household debt is 25.1% above the Q2 2013 trough. $0 Q1 2003 Q3 2003 Q1 2004 Q3 2004 Q1 2005 Q3 2005 Q1 2006 Q3 2006 Q1 2007 Q3 2007 Q1 2008 Q3 2008 Q1 2009 Q3 2009 Q1 2010 Q3 2010 Q1 2011 Q3 2011 Q1 2012 Q3 2012 Q1 2013 Q3 2013 Q1 2014 Q3 2014 Q1 2015 Q3 2015 Q1 2016 Q3 2016 Q1 2017 Q3 2017 Q1 2018 Q3 2018 Q1 2019 Q3 2019

Source: New York Fed Consumer Credit Panel/Equifax, Sage Policy Group; February 2020. HOW DID IT COME TO THIS? United States Corporate Bond Debt Outstanding

$10

$8 $9.2

$6

IN TRILLIONS IN $4

$2

$0 1980 1981 1982 1983 1984 1985 1986 1987 1988 1989 1990 1991 1992 1993 1994 1995 1996 1997 1998 1999 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018

Source: Securities Industry and Financial Markets Association (SIFMA), Federal Reserve, Sage Policy Group; February 2020. LABOR PRODUCTIVITY (PER HOUR) GROWTH United States

4

3 In Q3 2019 non-farm business sector 2 labor productivity fell by 0.2% — the 1 first decline since 2015. 0

-1 U.S. productivity has -2 risen at an average rate of 1.3% since

ANNUALIZED QUARTERLY % CHANGE ANNUALIZED QUARTERLY -3 2007, compared with a 2.1% average -4 since the end of WWII. Q1 2015 Q2 2015 Q3 2015 Q4 2015 Q1 2016 Q2 2016 Q3 2016 Q4 2016 Q1 2017 Q2 2017 Q3 2017 Q4 2017 Q1 2018 Q2 2018 Q3 2018 Q4 2018 Q1 2019 Q2 2019 Q3 2019

Source: U.S. Bureau of Labor Statistics, Sage Policy Group; February 2020. UNCERTAINTY CONTINUES: Global Economic Policy Uncertainty Index

400

350

300

250

200

150

100 224.3 50

0 1997 1999 2001 2003 2005 2007 2009 2011 2013 2015 2017 2019

Source: 'Measuring Economic Policy Uncertainty' by Scott Baker, Nicholas Bloom and Steven J. Davis at www.PolicyUncertainty.com, Sage Policy Group; February 2020. THE EYE IS ON ASSET PRICES: Shiller Price-Earnings Ratio

50

30.91

40 Dec. 2019: 30.91 30

20

10

0 1980 1981 1982 1983 1984 1985 1986 1987 1988 1989 1990 1991 1992 1993 1994 1995 1996 1997 1998 1999 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019

Source: Robert J. Shiller Data used in his book, "Irrational Exuberance" Princeton University Press, Sage Policy Group; February 2020. THREE THINGS THAT DEFINE PREDICTION

1. Impossibly low inflation: How could one have seen this coming in the context of the lowest unemployment rate in 50 years, lackluster productivity growth, a robust consumer spending sector and the lengthiest expansion in U.S. history?

2. Incredibly low interest rates: How can global indebtedness be so high, and global interest rates so low?

3. The strength of the U.S. economy itself: How can the U.S. economy have been performing so well, and financial markets booming so splendidly in the context of fragmenting global trade, slower immigration, Brexit, impeachment, global warming, and other phenomena that one would think would be bad for domestic economic outcomes?

Maybe, we’re not wrong? FORECAST The One • Risk of recession over the next 18 months is arguably more elevated than at any period since 2007 – second half of the year appears at least a bit tenuous as elections approach;

• U.S. manufacturing and agricultural activity still sluggish, though first stage trade agreement with China could set the stage for resurgence, especially in U.S. farm sector;

• Economy has some more room to run – watch, however, for any indications of rising layoffs and unemployment – the job market is holding everything together – if it buckles, the house of cards falls even in the context of low interest rates.

LOCATION QUOTIENTS Washington Metro Area | 2008 vs. 2018

2008 2018 Net Change

Mining, Logging, and Construction 1.00 0.90 -0.09 Manufacturing 0.21 0.20 -0.02 Trade, Transportation, and Utilities 0.69 0.66 -0.03 Information 1.40 1.19 -0.20 Financial Activities 0.85 0.83 -0.01 Professional and Business Services 1.75 1.64 -0.11 Education and Health Services 0.81 0.84 0.03 Leisure and Hospitality 0.89 0.92 0.03 Other Services 1.50 1.61 0.11 Government 1.34 1.41 0.07 Federal Government 6.10 6.10 0.00

Source: U.S. Bureau of Labor Statistics, Sage Policy Group; February 2020.

FOREIGN INVESTMENT IN U.S. COMMERCIAL REAL ESTATE Top Destination Markets | 2018

Washington $83.6

New York $81.7

San Francisco $65.4

Seattle $54.3

San Diego $50.9

Chicago $45.1

Los Angeles $44.0

Phoenix $31.7

Miami/South Florida $30.9

Philadelphia $26.2

$0 $10 $20 $30 $40 $50 $60 $70 $80 $90 IN MILLIONS PER 100,000 RESIDENTS

Source: Real Capital Analytics, Sage Policy Group; February 2020.

TIGHT LABOR MARKET CHALLENGES EMPLOYERS Washington Metro Area

0.9 83% Employers: Difficulty recruiting a suitable candidate. 59% Employees: Place high value on office design. A 0.8 poorly designed office would affect their decision to join a company.

0.7

0.6

0.5 0.5 UNEMPLOYED PER JOB OPENING –

0.4 RATIO RATIO

0.3 2017 2018 2019

Source: Bureau of Labor Statistics, Glassdoor, SHRM, RMJM, Transwestern; February 2020. RISING OFFICE CONSTRUCTION CAPTURES FLIGHT TO QUALITY Washington Metro Area

3.0%

2.5%

2.0%

1.5% 2.8%

1.0%

0.5% CONSTRUCTION AS A SHARE OF SHARE INVENTORY A AS CONSTRUCTION

0.0% 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019

Source: CoStar, Transwestern; February 2020. AGE OF OFFICE BUILDING VACATED UPON TENANT RELOCATION Washington Metro Area

55

50

45

40 AVERAGE AGE OF AGE BUILDING AVERAGE 35 38

30 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019 2020 2021

TENANT RELOCATION YEAR

Source: CoStar, Transwestern; February 2020. OFFICE DELIVERIES VS. ABSORPTION Washington Metro Area

8 16% Net Absorption SF Delivered 14% 6 Vacancy Rate

12%

4 10%

2 8%

6% RATE VACANCY IN MILLIONS OF SF IN MILLIONS 0 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019 4%

-2 2%

-4 0%

Source: CoStar, Transwestern; February 2020. CLASS B OFFICE TENANTS UPGRADING TO CLASS A Washington Metro Area

80%

70%

Relocated, but upgraded 60% to Class A

50%

40% Relocated, but remained in Class B

30% OFFICE SPACE

20%

10%

SHARE OF TENANTS RELOCATING FROM CLASS B B CLASS FROM TENANTS RELOCATING OF SHARE 0% 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019 2020

TENANT RELOCATION YEAR

Source: CoStar, CompStak, Transwestern; February 2020. TENANT DENSIFICATION TO CONTINUE Washington Metro Area

8%

6%

4%

2%

0%

-2%

-4%

INCREASE / REDUCTION REDUCTION / SF LEASED OF INCREASE -6%

-8% 2000 to 2004 2005 to 2009 2010 to 2014 2015 to 2019 TENANT RELOCATION YEAR

Source: CoStar, CompStak, Transwestern; February 2020. HOURS WASTED COMMUTING PER YEAR Washington Metro Area

110

100

90

80

70

60 102

50 AVERAGE HOURS PER COMMUTER AVERAGE 40

30 1990 1991 1992 1993 1994 1995 1996 1997 1998 1999 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017

Source: Texas A&M Transportation Institute, Transwestern; February 2020. OFFICE OPPORTUNITIES Washington Metro Area

Tech, consulting, and medical sectors Don’t forget about slower growth to account for 75% of total office-using sectors that could right-size job growth over the next five years

Second generation Class A owners: Looking to renovate? Focus Target business consulting, tech, law renovations on roof decks, if able, for firms, and business or professional the best ROI nonprofits

Source: Transwestern; February 2020.

INDUSTRIAL CONSTRUCTION Washington/Baltimore Region

4.5% Baltimore Metro Area 4.0%

3.5% Washington Metro Area

3.0%

2.5%

2.0%

1.5%

1.0%

CONSTRUCTION AS A SHARE OF SHARE INVENTORY A AS CONSTRUCTION 0.5%

0.0% 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019

Source: CoStar, Transwestern; February 2020. Note: Excludes flex and data centers. INDUSTRIAL VACANCY RATE AT HISTORIC LOW Washington/Baltimore Region

11%

10%

9% 5.4%

8%

7%

6%

5%

4% 1998 1999 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019

Source: CoStar, Transwestern; February 2020. Note: Excludes flex and data centers. WHAT CONSUMERS CONSIDER “FAST SHIPPING” United States 100%

90%

80%

70%

60%

50%

40%

30%

20%

10%

0% Same Day Delivery Next Day Delivery Within 2 Days Within 3 to 4 Days With 5 to 7 Days Within 1 to 2 Weeks

Source: Business Intelligence, Transwestern; February 2020. NUMBER OF PRODUCTS ON AMAZON'S PRIME NOW Selected Markets

Seattle

Dallas/Fort Worth

Sacramento

San Diego

Los Angeles

Portland

San Francisco

Denver

Milwaukee

Chicago

Washington/Baltimore

Houston

0 10,000 20,000 30,000 40,000 50,000 60,000 70,000

Source: ScrapeHero, Amazon, Transwestern; February 2020. INDUSTRIAL OPPORTUNITIES Washington/Baltimore Region

As artificial intelligence and other Rent spikes will continue for the technology advances, demand for foreseeable future smaller industrial will rise

Rent growth and tenants willing to pay Older warehouse attracts service a steep premium could spark select industries, distilleries, and infill development projects to pencil entertainment venues

Source: Transwestern; February 2020.

SHARE OF APARTMENT DEVELOPMENT PIPELINE IN OPPORTUNITY ZONES Washington Metro Area

5.0% 17.6%

Suburban

7.4% District of Columbia Year-End 38.3% Year-End 2016 2019 56.7% Northern Virginia

75.0%

Source: Delta Associates; February 2020. LOCATION OF APARTMENT PIPELINE IN OPPORTUNITY ZONES Washington Metro Area | Year-End 2019

4,000

3,500

Suburban Maryland 3,000

2,500 District of Columbia

RATE UNITS RATE 2,000 - Northern Virginia 1,500 MARKET

1,000

500

0 District of Columbia Prince George's Montgomery Frederick Prince William Fairfax

Source: Delta Associates; February 2020. Note: Includes projects under construction/leasing and planned over the next 36 months. TOP FIVE JURISDICTIONS WITH APARTMENT PIPELINE IN OPPORTUNITY ZONES Washington Metro Area

4,000 Year-End 2016 3,500 Year-End 2019

3,000

2,500

RATE UNITS RATE 2,000 -

1,500 MARKET

1,000

500

0 District of Columbia Silver Spring Hyattsville Largo College Park

Source: Delta Associates; February 2020. Note: Includes projects under construction/leasing and planned over the next 36 months. LOCATION OF APARTMENT PIPELINE IN OPPORTUNITY ZONES Prince George’s and Montgomery Counties | Year-End 2019

Opportunity Zone

In Lease-Up

Under Construction

Planned

Source: Google Maps, Delta Associates; February 2020. Note: Includes projects under construction/leasing and planned over the next 36 months. LOCATION OF MULTIFAMILY PIPELINE IN OPPORTUNITY ZONES District of Columbia | Year-End 2019

0 Units

1 - 499 Units

500 - 999 Units

1,000 Units or Above

Source: Delta Associates; February 2020. Note: Includes apartment and condo projects under construction/leasing/selling and planned over the next 36 months. APARTMENT PROJECTS USING OPPORTUNITY ZONE FUNDS Washington Metro Area

1900 Half Street Bryant Street – Phase 1 Hill East – Phase 1 1400 Montana District of Columbia District of Columbia District of Columbia District of Columbia 453 Units 449 Units 247 Units 97 Units

Southern Gateway The Stella Hampton Park College Park, MD New Carrollton, MD Capitol Heights, MD 393 Units 282 Units 200 Units

Source: Douglas Development, MRP Realty, Donatelli Development, MidCity, The Bozzuto Group, Urban-Atlantic, Velocity Capital, Delta Associates; February 2020. Note: Unit counts are market-rate units only. OPPORTUNITY ZONES OPPORTUNITIES Washington Metro Area

For large development sites, mix Develop in areas with multiple multifamily with other uses to unlock incentive programs the most value

Think beyond commoditized Class A Don’t overlook Northern Virginia’s “luxury” apartments closer-in Opportunity Zones

Source: Delta Associates; February 2020.

THE SILVER AND PURPLE LINES Northern Virginia and Suburban Maryland

SILVER LINE

Type Heavy Rail Light Rail Maryland Transit Operator WMATA (Metro) Administration (MTA) Opening Date 2014 (Ph. I); Q4 2020 (Ph. II) Q4 2022 - 2023

Length 23.2 miles 16.2 miles

# of Stations 11 21

Source: WMATA, MTA, Delta Associates; February 2020. CURRENT AND PLANNED MULTIFAMILY DEVELOPMENT Silver Line

McLean

Tysons Corner

Greensboro PHASE I Spring Hill

Wiehle–Reston East

Reston Town Center

Herndon

Innovation Center

Dulles Int'l Airport PHASE II UC/Recently Delivered Loudoun Gateway Planned Ashburn

0 1,000 2,000 3,000 4,000 5,000 6,000 7,000 8,000 MARKET-RATE UNITS

Source: Delta Associates; February 2020. Note: Includes projects within 0.5 mi. of a Silver Line station. CORE ECONOMIC ACTIVITY HUBS Silver Line

McLean

Tysons Corner

Greensboro PHASE I Spring Hill

Wiehle–Reston East

Reston Town Center

Herndon

Innovation Center

Dulles Int'l Airport PHASE II UC/Recently Delivered Loudoun Gateway Planned Ashburn

0 1,000 2,000 3,000 4,000 5,000 6,000 7,000 8,000 MARKET-RATE UNITS

Source: Delta Associates; February 2020. Note: Includes projects within 0.5 mi. of a Silver Line station. Red boxes indicate core economic activity hubs. STRATEGIC MULTIFAMILY DEVELOPMENT OPPORTUNITIES Silver Line

McLean

Tysons Corner

Greensboro PHASE I Spring Hill

Wiehle–Reston East

Reston Town Center

Herndon

Innovation Center

Dulles Int'l Airport PHASE II UC/Recently Delivered Loudoun Gateway Planned Ashburn

0 1,000 2,000 3,000 4,000 5,000 6,000 7,000 8,000 MARKET-RATE UNITS

Source: Delta Associates; February 2020. Note: Includes projects within 0.5 mi. of a Silver Line station. Green boxes indicate strategic development opportunities. MAJOR MULTIFAMILY PROJECTS UNDERWAY NOW Silver Line

The Heming The Boro: Ph. I Lumen at Tysons McLean Station Greensboro Station Greensboro Station 410 Units 541 Units 318 Units

Faraday Park Halley Rise Ph. I Loudoun Station Ph. II Wiehle Ave-Reston Station Reston Town Center Station Ashburn Station 407 Units 640 Units 318 Units

Source: Skanska, The Meridian Group, Kettler, LMC, Rooney Properties, Brookfield Properties, Comstock, Delta Associates; February 2020. Note: Unit counts are market-rate units only. CURRENT AND PLANNED MULTIFAMILY DEVELOPMENT Purple Line

Bethesda Metro/Connecticut Ave.

Lyttonsville/16th Street-Woodside

Silver Spring Metro/

COUNTY Dale Drive/Manchester Place MONTGOMERY MONTGOMERY Long Branch/Piney Branch Rd./Takoma- Langley

Riggs Road

Adelphi Rd.-UMGC-UMD/Campus Dr.- UMD/Balt. Ave.-College Park-UMD College Park Metro-UMD/Riverdale Park North-UMD

COUNTY Riverdale Park-Kenilworth/Beacon UC/Recently Delivered Heights-East Pines/Glenridge Planned PRINCE GEORGE’S GEORGE’S PRINCE New Carrollton Metro

0 1,000 2,000 3,000 4,000 5,000 6,000 7,000 MARKET-RATE UNITS

Source: Delta Associates; February 2020. Note: Includes projects within 0.5 mi. of a Purple Line station. CORE ECONOMIC ACTIVITY HUBS Purple Line

Bethesda Metro/Connecticut Ave.

Lyttonsville/16th Street-Woodside

Silver Spring Metro/Silver Spring Library

COUNTY Dale Drive/Manchester Place MONTGOMERY MONTGOMERY Long Branch/Piney Branch Rd./Takoma- Langley

Riggs Road

Adelphi Rd.-UMGC-UMD/Campus Dr.- UMD/Balt. Ave.-College Park-UMD College Park Metro-UMD/Riverdale Park North-UMD

COUNTY Riverdale Park-Kenilworth/Beacon UC/Recently Delivered Heights-East Pines/Glenridge Planned PRINCE GEORGE’S GEORGE’S PRINCE New Carrollton Metro

0 1,000 2,000 3,000 4,000 5,000 6,000 7,000 MARKET-RATE UNITS

Source: Delta Associates; February 2020. Note: Includes projects within 0.5 mi. of a Purple Line station. Red boxes indicate core economic activity hubs. STRATEGIC MULTIFAMILY DEVELOPMENT OPPORTUNITIES Purple Line

Bethesda Metro/Connecticut Ave.

Lyttonsville/16th Street-Woodside

Silver Spring Metro/Silver Spring Library

COUNTY Dale Drive/Manchester Place MONTGOMERY MONTGOMERY Long Branch/Piney Branch Rd./Takoma- Langley

Riggs Road

Adelphi Rd.-UMGC-UMD/Campus Dr.- UMD/Balt. Ave.-College Park-UMD College Park Metro-UMD/Riverdale Park North-UMD

COUNTY Riverdale Park-Kenilworth/Beacon UC/Recently Delivered Heights-East Pines/Glenridge Planned PRINCE GEORGE’S GEORGE’S PRINCE New Carrollton Metro

0 1,000 2,000 3,000 4,000 5,000 6,000 7,000 MARKET-RATE UNITS

Source: Delta Associates; February 2020. Note: Includes projects within 0.5 mi. of a Purple Line station. Green boxes indicate strategic development opportunities. MAJOR MULTIFAMILY PROJECTS UNDERWAY NOW Purple Line

The Elm 8001 Woodmont Chevy Chase Lake Bethesda Metro Station Bethesda Metro Station Connecticut Ave. Station 399 Units 308 Units 537 Units

Solaire 8200 Dixon The Residences at The Stella Silver Spring Metro Station Riverdale Park Station New Carrollton Metro Station 374 Units College Park Metro-UMD Station 282 Units 229 Units

Note: Unit counts are market- Source: Carr Properties, Insight Property Group, JBG Smith, The Bozzuto Group, Chevy Chase Land Co., Washington Property Co., Calvin Cafritz Enterprises, Urban-Atlantic, Delta Associates; February 2020. rate units only. TRANSIT ORIENTED DEVELOPMENT OPPORTUNITIES Washington Metro Area

Focus development in booming areas, Look beyond established hub stations but be wary of oversupply and for emerging neighborhoods with excessive land costs lower barriers to entry

Strategically acquire property near Leverage new transit access by new stations where vacant land is renovating and upgrading existing scarce for long-term redevelopment multifamily assets near new stations play

Source: Delta Associates; February 2020.