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Washington, DC Market Reports

Washington Metropolitan Area Market

Average Asking Rent (Price/SF)          $38.46
Vacancy Rate (%)            16.1%
Net Absorption (SF)        481,797

Office demand in the Washington metro area also held steady through fourth-quarter 2018, although absorption across the sub-state areas was uneven. The region registered 481,797 square feet of positive net absorption during the quarter. Positive net absorption of 348,582 square feet in Northern Virginia and 168,759 square feet in Suburban Maryland was slightly tempered by negative net absorption of 35,544 square feet in the District of Columbia. For the year, net absorption for the region was positive 2.6 million square feet. At 16.1%, the region's overall vacancy rate declined 10 basis points over the quarter and is 30 basis points lower than the vacancy recorded one year ago.

District of Columbia Office Market

Average Asking Rent (Price/SF)       $55.08
Vacancy Rate (%)         12.7%
Net Absorption (SF)      -35,544

The District of Columbia experienced 632,819 square feet of net absorption in 2018, the second-highest total in the past five years. The vacancy rate rose 130 basis points year-over-year to 12.7%. This increase is largely attributed to significant developments that delivered at the end of 2018, with large tenants scheduled for first-quarter 2019 occupancy. Core submarkets, such as the CBD, East End and Capitol Hill, still command the highest rents in the District. The substantial development pipeline continues to exert downward pressure on effective rents, yet asking rents continue to increase with the delivery of newer product. Asking rental rates increased 0.3% from one year ago, to $55.08/SF.

Suburban Maryland Office Market

Average Asking Rent (Price/SF)  
    $27.63
Vacancy Rate (%)       15.3%
Net Absorption (SF)   168,759

Suburban Maryland's office market tightened in the fourth quarter of 2018 after occupancy declined during the third quarter. Net absorption measured 168,759 square feet in the fourth quarter, bringing the 2018 total absorption to 644,734 square feet. The vacancy rate declined 40 basis points to 15.3% during the fourth quarter. Asking rental rates ticked up slightly over the past year from $27.40/SF to $27.63/SF.

Northern Virginia Office Market

Average Asking Rent (Price/SF)      $32.72
Vacancy Rate (%)        19.2%
Net Absorption (SF)    348,582

After posting strong net absorption through the first half of 2018, demand turned negative during the third quarter. However, this was just a blip, as absorption was positive in the fourth quarter. Net absorption measured 348,582 square feet during the fourth quarter; annual absorption for 2018 measured 1.4 million square feet, a high for this cycle. Overall vacancy declined 20 basis points to 19.2% in the fourth quarter. Average overall asking rents increased 1.9% from one year ago to $32.72/SF.



Washington Metropolitan Area Office Market Report
4Q18
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District of Columbia Office Market Report
4Q18
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Northern Virginia Office Market Report
4Q18
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Suburban Maryland Office Market Report
4Q18
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Washington Metropolitan Area Multifamily Market Report
4Q18
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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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The Silver Line Effect
September 2017
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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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