DC Metro Area Commute Modeling
Here is another interesting report from Cresa Research on recent commute and traffic patterns in the D.C Metro area. It can provide some good information on the status of remote work in this area, and if companies are returning to the traditional office. Some highlights:
- In Spring, 2021, 54% of employees expect to be in the office 3+ days a week.
- As of April 2021, total Metro station entries have reached 7.36 million.
- As offices begin to reopen and considering a record-high boom in car sales, traffic congestion is only expected to increase as employees return to the office.
- Commuters living within the “inner core” of D.C. will likely become more walker and biker friendly, already representing 17% of pre-pandemic commutes, as they look to avoid crowded metro cars.
- As employers return to the office and anticipate an increase in employees driving, parking allowances have become a popular incentive.
Here is the full report. If our team at Cresa can answer any questions about this or other research data we have available for the D.C. metro area office market, please visit my website to start a conversation.
Cresa Research Washington DC Metro Area Commute Modeling Pre Post COVID
July 1, 2021
Overview
Commuters in the District of Columbia, Northern Virginia, and Suburban Maryland region have historically experienced some of the worst commutes in the country, averaging nearly 45 minutes one-way pre-pandemic. COVID-induced work from home policies saw 42% of the US labor force working remotely during the pandemic, while the remaining population was not working (33%) or in-person as essential personal (26%). Commute times in 2020 dropped significantly, as office occupancy never exceeded 25% in the region. As COVID case rates continue to fall, more people become fully inoculated, and summer travel plans taper off, office occupancies will begin to climb. Many employers in the region are setting an early Fall 2021 back-in-person date while considering flexible workplace strategies.
Telework
Before pandemic-induced pressures forced immediate work-from-home policies into place, Washington DC Metro’s teleworking policies grew in popularity. In 2019, an estimated 35% of regional commuters teleworked at least occasionally. Due to newly implemented flexible workplace strategies, family schedules, and hesitancy to go back into offices until the region is widely inoculated, the quantity of employees teleworking is expected to remain high through Summer 2021.
Metro Ridership
In the last few years, Metro ridership has been increasing, reflecting Washington Metro commuters’ evident reliance on public transportation. In 2020, Metro ridership all but ceased due to pandemic-induced work-from-home policies, dropping 93% in total ridership. This drop-off in ridership cost the Washington Metropolitan Area Transit Authority (WMATA), at its lowest, a loss of $2 million in daily revenue. Though nerves surround the future of metro ridership and public transit have been tense, the Washington Region has already experienced a rebound in commuters.
At the beginning of the year, Metro expected 42% of pre-pandemic riders to return, though they would likely be taking fewer trips. As of April 2021, total Metro station entries have reached 7.36 million. These ridership entries are already showing the shift in commuting due to greater flexibility in work schedules. Traditional morning (7:00 AM9:00 AM) and evening (4:00 PM-7:00 PM) peak times have shown decreases in daily ridership this year, dropping 7.0% and 4.4%, respectively. Comparatively, midday (10:00 AM3:00 PM) metro ridership has recorded an 8.5% increase during 2021. This new distribution in metro ridership is also reflected in weekdays, as 2021 ridership numbers show commuters favoring Tuesdays through Fridays, with the least likely commute day being Monday.
Commuter Rings
As employers consider flexible workplace strategies, employees will adjust their desires based on commutes and workplace desires. Though there will likely be a dip in daily commutes on “off-peak” days, commuting-type distributions will likely stay the same. That being said, commuters living within the “inner core” will likely become more walker and biker friendly, already representing 17% of pre-pandemic commutes, as they look to avoid crowded metro cars. Employees with longer commute times, primarily those living in the outer ring, are likely to transition to telework. Though the percent of commute type will likely not change, the number of employees commuting will decrease due to lengthy commutes and painful traffic congestion.
Parking Incentives
As employers return to the office and anticipate an increase in employees driving, parking allowances have become a popular incentive. To stay competitive, landlords are adapting incentive offerings. Never-before-offered incentives include higher parking ratios and shareable parking areas.
Outside the Beltway
With the closing of offices and forced work-from-home policies, its unsurprising traffic plummeted nearly 90% from previous 2019-levels. As traffic levels plummeted, congestion did as well, giving “essential” commuters a year of respite from one of the nation’s worse congested cities. Though its popularity has decreased as of late, driving alone is still the most popular method of transportation. As offices begin to reopen and considering a record-high boom in car sales, traffic congestion is only expected to increase as employees return to the office.
End of Report
If you have significant questions about your current real estate strategy, it may be time for a discussion. Once we have started our conversation, we can create a strategy to look at your business operations and current space and then craft up a plan to find something that is a great fit in the area. With the current vacancies and inventory, we will work with you to get the best deal. We represent tenants ONLY, so you can feel comfortable that we are working for your business 100%. If we can help you by being your tenant broker in the DC, Maryland, or Northern Virginia area, visit my website or call me at 301-841-6542. Make sure to follow all my social efforts by clicking on the links below.
I specialize in providing comprehensive real estate services,
exclusively representing corporate tenants on all commercial real estate needs.
Commercial Tenant Broker
2 Bethesda Metro Center, Suite 900
Bethesda, MD 20814
301-842-6542
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