In March we reviewed the new high rise apartments coming to Tysons with regard to their overall regional comps to both compare to other submarkets as well as to each other. The question we posed was “can thousands of new rental (and foreseeably some future to own) properties help taper the growth in costs, if not reverse the trend?”
Earlier this year both Ascent (404 rental units) and Ovation (300 rental units) hit the market for prospective leasers. Both are significantly more expensive than the average rental price in Tysons, but that can be expected considering most other rental properties in Tysons are either mid-rise or garden style apartments, as well as being slightly older. After a few months it appears that the influx of thousands of units in the area are actually having an impact on the marketable price per square foot for even new units (as well as existing older stock).
Since that time both Ascent and Ovation have offered cash back and free month(s) rent for new renters, worth thousands in lowered rates. This is a smart move on both apartment’s parts because it retains their original price precedents while being marketable in the short term prior to development in Tysons making the area as desired as Arlington. Before removing this discount from the front page of their website, Ascent was offering 1 month free with an $800 first month’s cash back. We’ve also seen a downtick in the actual pricing for units from both.
The above comparison shows a reduction of between 10% and 23% in the effective annual rental price for new tenants. Ovation remains priced lower than Ascent, which makes sense considering Ascent is closer to metro, although Ovation is in a more established neighborhood which includes a grocery store.
The new pricing does show a more successful marketability for Tysons properties versus other submarkets in the region, though it is likely we will see another dollar or more shaved off in the short term in order to address the current market based price for full occupancy. This would put Tysons in line or slightly higher in price than Reston, which makes sense once the Silver Line is running, but less than Ballston and the rest of Arlington.
Based on our previous quick search of local listings for comparable apartments (Class A within 1/2 mile of metro):
| Sub-Market | PSF |
| Reston* | $ 24.00 |
| Tysons | $ 25.00 – 35.00 (Average) |
| Ballston | $ 32.50 |
| Courthouse | $ 34.90 |
| Rosslyn | $ 39.00 |
| Golden Triangle D.C. | $ 43.00 |
| U Street D.C. | $ 44.40 |
*No metro currently