District of Columbia Office Market
|Average Asking Rent (Price/SF)|| $57.38|
|Vacancy Rate (%)|| 15.0%|
|Net Absorption (SF)|| -518,401|
The District of Columbia experienced weakening office leasing metrics during
the third quarter of 2020, with negative net absorption and lower asking rents. The impact of the COVID-19 pandemic on the economy and office market remained significant as many tenants paused their searches for office space, slowing market activity considerably. Vacancy remained even with last quarter, a result of slow leasing velocity and delayed move-ins but helped by the fact that there was no new office space that delivered during the quarter. Two notable construction projects will deliver over the next few months. One is 250 M Street SW, a 227,948-square-foot office building in the Capitol Riverfront submarket. The property is 100.0% pre-leased to the District Department of Transportation and will deliver in the first quarter of 2021. Additionally, 699 14th Street NW, a 137,797-square-foot office property in the East End submarket, will be completed. The building is currently 0.0% pre-leased and will also deliver during the first quarter of 2021.