Research

Lincoln Property Company’s in-house Research department advises clients on the constantly changing commercial real estate environment, helping them make quick market decisions, or plan long-term strategies. Please contact us to receive a copy of our marketing materials, or to discuss the D.C. commercial real estate market today.

Washington D.C.

Inventory (RSF)
156.7 M SF
Direct Vacancy
13.9%
Total Vacancy
14.9%
YTD Net Absorption
44,016 SF
YTD Leasing
2.3 M SF
Under Construction
1.4 SF
Pre-Leased
64%
YTD Deliveries
330,000 SF
Asking Rental Rate (FS)
$53.24 PSF
YTD Sales
$662.6 Million
Quarterly Report
DC1Q2022MarketReport.pdf
Mid-Quarter Report
DCMid1Q2022.pdf

The Washington, DC office market currently consists of 808 buildings, over 25,000 square feet, totaling approximately 156.7 million square feet of rentable space. As of February 2022, the unemployment rate for the District of Columbia decreased to 5.6%, while unemployment for the Washington, DC Metropolitan area remained flat at 3.6%. The national unemployment rate decreased to 3.6%.

The DC Metropolitan Statistical Area (MSA) added 123,900 jobs from Feb 2021-Feb 2022, representing 4.0% growth YOY. Sectors adding the most jobs were Leisure & Hospitality with 65,900 followed by Professional & Business Services with 19,500; while the Government added 16,300. The largest public sector lease executed this quarter was a short-term extension for 477,735 square feet by the GSA – Department of Justice at 450 5th Street, NW, in the East End submarket. Foley & Lardner executed the largest private sector lease with a 15-year, 95,000-square-foot renewal at 3000 K Street, NW – Washington Harbour East, in the Georgetown submarket. 1275 New Jersey Avenue, SE (in Capitol Riverfront) delivered this quarter. The 330,000-square-foot, Class A building delivered 88% leased. No additional buildings delivered, nor broke ground, in the first quarter. There were five sales transactions this quarter, totaling $662,551,651. The largest sale was 601 D Street, NW – Patrick Henry Building, trading to Nuveen from Tishman Speyer for $375,431,522 ($731 psf).

Northern Virginia

Inventory (RSF)
189.9 M SF
Direct Vacancy
15.7%
Total Vacancy
16.8%
YTD Net Absorption
1.0 M SF
YTD Leasing
2.1 M SF
Under Construction
3.6 M SF
Pre-Leased
76%
YTD Deliveries
1.4 M SF
Asking Rental Rate (FS)
$33.78 PSF
YTD Sales
$565.5 Million
Quarterly Report
VA1Q2022-MarketReport.pdf
Mid-Quarter Report
VAMid1Q2022.pdf

The Northern Virginia office market consists of 1,515 buildings over 25,000 square feet, totaling approximately 189.9 million square feet of rentable space. Northern Virginia added 55,700 net new jobs from Feb 2021-Feb 2022, representing 3.8% growth YOY. Sectors adding the most jobs were Leisure & Hospitality with 28,000, followed by Trade & Transportation with 9,700; while the Government added 7,400. The Northern Virginia market recorded 1,008,733 square feet of net absorption in the first quarter. A notable contributor to the positive net absorption was Fannie Mae moving into 636,394 square feet at recently delivered 2000 Opportunity Way. Northern Virginia totaled 2,051,221 square feet of leasing in the first quarter. The largest lease executed this quarter was a 126,636-square-foot renewal by RAND Corporation at 1200 S. Hayes Street, in Crystal City. There were seven sales transactions in Northern Virginia this quarter, totaling $565,510,000. The largest sale was 1300 Wilson Boulevard – Commonwealth Tower trading to DivcoWest from Tishman Speyer / ADIA for $245,000,000 ($675 psf).

Suburban Maryland

Inventory (RSF)
90.7 M SF
Direct Vacancy
13.6%
Total Vacancy
14.9%
YTD Net Absorption
-268,818 SF
YTD Leasing
795,427 SF
Under Construction
1.6 M SF
Pre-Leased
59%
YTD Deliveries
475,000 SF
Asking Rental Rate (FS)
$29.13 PSF
YTD Sales
$37.09 Million
Quarterly Report
MD1Q2022MarketReport.pdf
Mid-Quarter Report
MDMid1Q2022.pdf

The Suburban Maryland office market, which encompasses Montgomery and Prince George’s Counties, totals approximately 90.7 million square feet of rentable space in 892 office buildings of 25,000 square feet and greater. The market recorded a decrease in net absorption in the first quarter of 2022 with -268,818 square feet absorbed, down from the -105,554 square feet absorbed in the previous quarter. While net absorption was negative, there was one significant move-in during the first quarter 2022 – Inotiv occupied their 47,394-square-foot space at 9601 Medical Center Drive.

Direct vacancy increased to 13.6% in the first quarter 2022, up from 13.4% in the fourth quarter 2021, and total vacancy increased to 14.9%, up from 14.5% in the fourth quarter 2021. There were three significant office building sales in Suburban Maryland during the first quarter 2022. 4405 East-West Highway in the Bethesda / Chevy Chase submarket sold in March 2022 for $21.5 M, and in the North Silver Spring submarket 12041 Bournefield Way and 2331 Broadbirch Drive sold for $11.1 M and $4.49 M, respectively. The largest lease signed this quarter was Tetracore, Inc. signing a 99,206-square-foot lease at 77 Upper Rock Circle, a 235,347-square-foot, Class A office building in the North Rockville submarket.

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