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Washington, DC Market Reports

Washington Metropolitan Area Market

Average Asking Rent (Price/SF)       $37.61
Vacancy Rate (%)         16.2%
Net Absorption (SF)     889,196

The Washington metro area's job growth began to taper during the first half of 2017, consistent with the pattern in most other major U.S. markets. The nation is in the mature phase of the economic cycle. The Washington area added 38,000 jobs in the 12 months ending April 2017, slightly below the region's 20-year average of 44,200 jobs per annum. Professional and Business Services is the largest of the region's sectors and makes up 23% of the area's employment base. This sector added 12,800 jobs in the 12 months ending April 2017, or 34% of the total jobs added. Jobs in this sector are high paying and contribute to office demand, so growth in this sector bodes well for continued improvement of regional office market fundamentals.

District of Columbia Office Market

Average Asking Rent (Price/SF)      $54.04
Vacancy Rate (%)        11.7%
Net Absorption (SF)    -60,722

After 10 consecutive quarters of positive net absorption, the District of Columbia's office market registered negative net absorption during the second quarter of 2017. Occupancy declined by 60,722 square feet, and the overall vacancy rate edged up 20 basis points, to 11.7%. Densification continues to plague the District, with three large moves announced or occurring during the second quarter that included some amount of densification or consolidation.

Suburban Maryland Office Market

Average Asking Rent (Price/SF)  
   $27.04
Vacancy Rate (%)     16.6%
Net Absorption (SF)  -38,096

The Suburban Maryland office market began 2017 with a strong first quarter, thanks in part to tech education firm 2U Inc.'s headquarters relocation and expansion. However, the market took a breather during the second quarter, registering negative net absorption of 38,096 square feet and no change in the vacancy rate. The average asking rent fared well during the second quarter, increasing by $0.43/SF compared with the first quarter. Continuing a long-term flight to quality, the Class A office market performed well during the second quarter, with 64,966 square feet of positive absorption, firming asking rents and a declining vacancy rate.

Northern Virginia Office Market

Average Asking Rent (Price/SF)      $31.99
Vacancy Rate (%)        19.4%
Net Absorption (SF)    206,810

The Northern Virginia office market continued to tighten during the second quarter of 2017, with positive absorption, an increase in asking rents, a decline in vacancy, and a strong investment sales performance to follow up the first quarter's tally of more than $1 billion. Absorption for the second quarter was 206,810 square feet, an increase from last quarter's total of 171,639 square feet. Northern Virginia's overall vacancy rate edged down 10 basis points for the second quarter of 2017 to 19.4%, in line with the 19.4% rate from one year earlier.



Washington Metropolitan Area Office Market Report
2Q17
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District of Columbia Office Market Report
2Q17
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Suburban Maryland Office Market Report
2Q17
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Northern Virginia Office Market Reports
2Q17
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Washington Metropolitan Area Multihousing Market Report
2Q17
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The Evolution of the Financial Services Industry
June 2017
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Washington Metro Area MegaTrends: A 2017 Update
March 2017
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State of U.S. Office Leasing Concessions and the Outlook For 12 Major Cities
December 2016
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Scale of Disruption - The Sharing Economy's Effect On U.S. Commercial Real Estate
October 2016
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Political Control - Who Runs Washington and the Impact On Office Space Demand
July 2016
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The Impact of Office Space on Employee Productivity
February 2016
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