Northern Virginia Office Market Report
|Average Asking Rent (Price/SF)|| $33.79|
|Vacancy Rate (%)|| 19.2%|
|Net Absorption (SF)||-868,672|
The effects of the pandemic on the Northern Virginia office market accelerated during the fourth quarter, as -868,672 square feet was absorbed, bringing the 2020 annual absorption total to -1.2 million square feet. Gross leasing was still below pre-pandemic levels in the fourth quarter, and many of the leases executed during the quarter were renewals. The most significant lease of the quarter was by Volkswagen Group of America, which leased 196,000 square feet at Boston Properties’s new Reston Gateway development. Overall vacancy ended the fourth quarter at 19.2%, an increase of 50 basis points from the prior quarter and 100 basis points from one year ago. The average overall asking rent increased 1.1% from one year ago to $33.79/SF, in part due to new supply that delivered earlier this year. However, effective rents remain under downward pressure as concessions are elevated.