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Washington, DC Market Reports

Washington Metropolitan Area Market

Average Asking Rent (Price/SF)          $39.98
Vacancy Rate (%)            16.1%
Net Absorption (SF)        687,973

Office demand in the Washington metro area was positive during the fourth quarter but down from the previous quarter. The fourth quarter saw 687,973 square feet of net absorption in the region, with positive totals in all three substate areas. Net absorption registered 373,797 square feet in Suburban Maryland, 240,019 square feet in Northern Virginia and 74,157 square feet in the District of Columbia. The metro area's annual net absorption for 2019 was 3.0 million square feet, a significant increase from 2018, when annual net absorption totaled 2.1 million square feet. Overall, 10 of the last 12 quarters have registered positive net demand. At 16.1%, the region's overall vacancy rate was unchanged from the previous quarter and 10 basis points lower than the vacancy rate recorded one year ago.

District of Columbia Office Market

Average Asking Rent (Price/SF)       $56.61
Vacancy Rate (%)         14.2%
Net Absorption (SF)       74,157

The District of Columbia registered 74,157 square feet of net absorption during the fourth quarter of 2019, bringing year-to-date absorption to 999,566 square feet. Despite positive net absorption in 2019, vacancy continues to creep upward, registering 14.2% at fourth-quarter 2019, an increase of 110 basis points from one year ago. This is attributed to several large projects delivering, with a combined pre-leasing rate of 40.1%.

Suburban Maryland Office Market

Average Asking Rent (Price/SF)  
    $27.97
Vacancy Rate (%)       14.5%
Net Absorption (SF)   373,797

Suburban Maryland's office demand picked up slightly in the fourth quarter of 2019, after moderate positive absorption in the third quarter. Net absorption in the fourth quarter measured 373,797 square feet, yet the 2019 net absorption total was only slightly higher at 376,165 square feet. The overall vacancy rate registered 14.5% at the end of the fourth quarter, down 60 basis points from the previous quarter, largely driven by the delivery of pre-leased space. Asking rental rates have increased 1.3% over the past year, ticking up to $27.97/SF from $27.61/SF at fourth-quarter 2018, although rental rates are down slightly from the previous quarter.

Northern Virginia Office Market

Average Asking Rent (Price/SF)      $33.41
Vacancy Rate (%)        18.3%
Net Absorption (SF)    240,019

Demand for office space remained sturdy in the fourth quarter of 2019. Quarterly absorption totaled 240,019 square feet, bringing the 2019 annual absorption total to 1.6 million square feet. This slightly outpaced the annual absorption total for all of 2018. Overall vacancy ended the fourth quarter at 18.3%, a decrease of 10 basis points from the prior quarter and 70 basis points from a year ago. Average overall asking rents increased 2.0% from one year ago to $33.41/SF.



Washington Metropolitan Area Office Market Report
4Q19
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District of Columbia Office Market Report
4Q19
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Northern Virginia Office Market Report
4Q19
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Suburban Maryland Office Market Report
4Q19
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Washington Metropolitan Area Multifamily Market Report
3Q19
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May 2019
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March 2019
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The Rise of Spec Suites
October 2018
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The Apartment Amenities Race
March 2018
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Paid Parking Arrives in Tysons
February 2018
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