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)
159.0 M SF
Direct Vacancy
14.7%
Total Vacancy
15.9%
YTD Net Absorption
-761,759 SF
YTD Leasing
5.6 M SF
Under Construction
592,000 SF
Pre-Leased
71%
YTD Deliveries
1.4 M SF
Asking Rental Rate (FS)
$53.11 PSF
YTD Sales
$1.91 Billion
Quarterly Report
DC3Q2022MarketReport.pdf
Mid-Quarter Report
DCMid4Q2022.pdf

The Washington, DC office market currently consists of 818 buildings, over 25,000 square feet, totaling approximately 159.0 million square feet of rentable space. As of August 2022, the unemployment rate for the District of Columbia decreased to 5.3%, while unemployment for the Washington, DC Metropolitan area increased to 3.5%.

The DC Metropolitan Statistical Area (MSA) added 73,800 jobs from Aug 2021-Aug 2022, representing 2.3% growth YOY. Sectors adding the most jobs were Leisure & Hospitality with 29,300, followed by Educational & Health Services with 14,400, while the Government added 5,500. The largest public sector lease executed this quarter was a renewal signed by the GSA – U.S. Customs and Border Protection for 99,515 square feet at 90 K Street, NE, in the NoMa submarket. FINRA executed the largest private sector lease with a 67,754-square-foot lease at 1700 K Street, NW in the CBD submarket. 2100 Pennsylvania Avenue, NW (469,000 sf, 66% leased) delivered. Two buildings, totaling $595,800,000, sold in the third quarter. The largest sale of the quarter was 601 Massachusetts Avenue, NW trading to Mori Trust Company from Boston Properties for $531,000,000 ($1,109 psf).

Northern Virginia

Inventory (RSF)
189.6 M SF
Direct Vacancy
15.4%
Total Vacancy
16.6%
YTD Net Absorption
735,641 SF
YTD Leasing
7.6 M SF
Under Construction
3.9 M SF
Pre-Leased
76%
YTD Deliveries
1.5 M SF
Asking Rental Rate (FS)
$33.47 PSF
YTD Sales
$1.73 Billion
Quarterly Report
VA3Q2022MarketReport.pdf
Mid-Quarter Report
VAMid4Q2022.pdf

The Northern Virginia office market consists of 1,502 buildings over 25,000 square feet, totaling approximately 189.6 million square feet of rentable space. Northern Virginia added 27,400 net new jobs from August 2021-August 2022, representing 1.8% growth YOY. Sectors adding the most jobs were Trade & Transportation with 9,700, followed by Leisure & Hospitality with 8,000; while the Government added 3,700. The unemployment rate in Northern Virginia ticked down from the previous quarter to 2.5%. The Northern Virginia market recorded 157,824 square feet of net absorption in the third quarter. Tenants contributing to the positive net absorption included TechWish moving into 62,750 square feet at 21000 Atlantic Boulevard and INOVA/County of Loudoun moving into 55,503 square feet at 46000 Center Oak Plaza. Northern Virginia totaled 2,570,684 square feet of leasing in the third quarter. The largest lease signed this quarter was a renewal by Hilton Worldwide for 220,000 square feet at 7930 Jones Branch Dr – Park Place II. There were eleven sales transactions in Northern Virginia this quarter, totaling $476,850,000.

Suburban Maryland

Inventory (RSF)
92.2 M SF
Direct Vacancy
13.3%
Total Vacancy
14.4%
YTD Net Absorption
341,564 SF
YTD Leasing
3.1 M SF
Under Construction
766,362 SF
Pre-Leased
20%
YTD Deliveries
1.7 M SF
Asking Rental Rate (FS)
$29.72 PSF
YTD Sales
$776.2 Million
Quarterly Report
MD3Q2022MarketReport.pdf
Mid-Quarter Report
MDMid4Q2022.pdf

The Suburban Maryland office market, which encompasses Montgomery and Prince George’s Counties, totals approximately 92.2 million square feet of rentable space in 898 office buildings of 25,000 square feet and greater. The market recorded an increase in net absorption in the third quarter with 532,554 square feet absorbed, up from the 77,828 square feet absorbed in the previous quarter. A contributing tenant was Marriott occupying their new 785,000-square-foot headquarters at 7750 Wisconsin Avenue.

Direct vacancy decreased to 13.3% in the third quarter, down from 13.5% in the second quarter, and total vacancy decreased to 14.4%, down from 14.8% in the second quarter. The largest office building sale in Suburban Maryland during the third quarter was Democracy Center in the North Bethesda submarket. The building sold in September 2022 for $69.5 M, plus an additional development site sold for $12.5 M, bringing the total sales price to $82.0 M. The largest lease signed this quarter was Total Wine & More signing a 153,623-square-foot renewal/expansion at 6600 Rockledge Drive. The year-over-year unemployment rate in Suburban Maryland decreased to 3.9% in August 2022.

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