Quarterly: Winter 2004 - GWCAR - Greater Washington Commercial Association of REALTORS

CBQ >> Winter 2004 Issue

Profile of Margarita Foster

Margarita Foster by Kathy Erb, Contributing writer

Margarita Foster joined Cassidy & Pinkard as Director of Market Research in November 2003. With a Masters in Urban and Environmental Planning from the University of Virginia and 10 years of experience with the Urban Land Institute (ULI), Margarita came to Cassidy & Pinkard with expertise in a variety of real estate products and many aspects of commercial real estate. CBQ sat down with Margarita to learn more about her and her perspective on the market.

GETTING PERSONAL
Birthplace: Cuba
Childhood Home: New Jersey
Home Today: Fairfax, Va.
Family Life: Husband and two boys, ages 6 and 9
Favorite Retreat: Family cabin in mountains of West Virginia
Hobbies: Biking, hiking, gardening and chatting with her 88-year-old grandmother

What led you to your current position with Cassidy & Pinkard?

At ULI we focused on a variety of products including retail, residential, hotel and office in markets all over the world. The product I found most interesting was office, because it typically anchored mixed-use projects that featured residential, retail, hotel and transit components. I knew Cassidy & Pinkard focused predominantly on office. In addition, I had worked with Bob Pinkard while at ULI and found him to be a gifted strategic thinker as well as a down to earth person.

What do you see in store this year for the market?

In the fourth quarter of 2003, we saw the market turn the corner in Northern Virginia. There were a number of leases signed, including some for large blocks of space over the 100,000 square foot threshold. It appears that the momentum generated in 2003 will continue in 2004 and the market will experience a decrease in vacancy and an increase in rental rates in select submarkets.

Washington, DC's office market remained resilient in the face of national and economic instability, experiencing a rise in vacancy of less than one percentage point for year-end 2003. Looking forward to 2004, the delivery of additional vacant space will likely push the vacancy rate higher and keep net effective rents down. This continues to be an advantageous market for tenants and an increasingly difficult one for landlords, especially landlords with significant amounts of second-generation.

The market in Suburban Maryland gained a little momentum in the last quarter of 2003, however it was not as robust as Virginia. There could be a gradual recovery there as well in 2004.

Is there an industry you think we should keep an eye on for a potential impact on the market?

It appears that the Department of Homeland Security will continue to have a great impact on our region in 2004. A Steve Fuller article published by Brookings stated that typically the Washington area captures about 13 percent of all federal procurement contracts. Homeland Security however, far outpaced this federal average. This Department awarded 58 percent of its procurement contracts to vendors in the Washington region.

What tools are most important in your job? And do you see anything, such as a new technology, that will have a major impact on how research is conducted?

Centralized databases and greater use of spreadsheets have already changed the way market research is conducted. However, you still have to be on the front line talking to people to make sure that information about the market is in line with the data. Also, all data is not comparable and you need to be aware of methodologies and understand the assumptions behind the numbers.

The trickiest part of market research is that the data is not perfect. You have to make decisions based on both the numbers and your knowledge of the market. Knowing what is happening in the market comes from being out there talking to people. Organizations, such as GWCAR, can provide so much value by bringing professionals together and providing great opportunities to exchange information and ideas.