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Inventory (RSF)

159.0 M SF

Direct Vacancy

14.7%

Total Vacancy

15.9%

YTD Net Absorption

-858,325 SF

YTD Leasing

6.9 M SF

Under Construction

592,000 SF

Pre-Leased

72%

YTD Deliveries

1.4 M SF

Asking Rental Rate (FS)

$53.02 PSF

YTD Sales

$1.95 Billion

Quarterly Report

DC4Q2022MarketReport.pdf

Mid-Quarter Report

DCMid1Q2023.pdf

The Washington, DC office market currently consists of 815 buildings, over 25,000 square feet, totaling approximately 159.0 million square feet of rentable space. As of November 2022, the unemployment rate for the District of Columbia decreased to 4.4%, while unemployment for the Washington, DC Metropolitan area decreased to 3.1%. The national unemployment rate remained flat at 3.7%.

The DC Metropolitan Statistical Area (MSA) added 73,800 jobs from Nov 2021-Nov 2022, representing 1.9% growth YOY. Sectors adding the most jobs were Leisure & Hospitality with 22,800, followed by Educational & Health Services with 19,000, while the Government lost 2,100. There were no GSA leases of significant size executed in the fourth quarter. Orrick signed the largest lease of the quarter with a 77,000-square-foot lease at 2100 Pennsylvania Avenue, NW in the CBD submarket. No buildings delivered, nor broke ground, in the fourth quarter. Two buildings, totaling $31,440,000, sold in the fourth quarter. 1735 K Street, NW sold to Bernstein for $15,500,000 ($194 psf), while 1010 Vermont Avenue, NW sold to Altus for $15,940,000 ($193 psf). Both buildings are expected to be converted into residential.

Inventory (RSF)

190.3 M SF

Direct Vacancy

15.3%

Total Vacancy

16.5%

YTD Net Absorption

781,000 SF

YTD Leasing

11.6 M SF

Under Construction

3.4 M SF

Pre-Leased

70%

YTD Deliveries

2.1 M SF

Asking Rental Rate (FS)

$34.15 PSF

YTD Sales

$1.92 Billion

Quarterly Report

VA4Q2022MarketReport.pdf

Mid-Quarter Report

VAMid1Q2023.pdf

The Northern Virginia office market consists of 1,500 buildings over 25,000 square feet, totaling approximately 190.3 million square feet of rentable space. Northern Virginia added 29,400 net new jobs from November 2021- November 2022, representing 1.9% growth YOY. Sectors adding the most jobs were Education & Health Services with 8,900, followed by Trade, Transportation, & Utilities with 6,400; while the Government added 5,400. The unemployment rate in Northern Virginia ticked up from the previous quarter to 2.6%, but continues to outperform the current national unemployment rate of 3.7%. The Northern Virginia market recorded 44,944 square feet of net absorption in the fourth quarter. Contributing to the positive net absorption was the Institute for Defense Analyses moving into its new 370,000-square-foot headquarters at 701 E. Glebe Road. Northern Virginia totaled 3,992,047 square feet of leasing in the fourth quarter. The largest lease executed this quarter was a 1,623,490-square-foot renewal by U.S. Patent & Trademark Office at 500, 501 & 600 Dulany Street, however, USPTO will vacate 763,450 square feet at 400 and 401 Dulany in 2024. There were five sales transactions in Northern Virginia this quarter, totaling $190,050,000.

Inventory (RSF)

91.7 M SF

Direct Vacancy

15.4%

Total Vacancy

16.4%

YTD Net Absorption

-93,208 SF

YTD Leasing

3.8 M SF

Under Construction

641,000 SF

Pre-Leased

32%

YTD Deliveries

1.5 M SF

Asking Rental Rate (FS)

$29.57 PSF

YTD Sales

$854.2 Million

Quarterly Report

MD4Q2022MarketReport.pdf

Mid-Quarter Report

MDMid1Q2023.pdf

The Suburban Maryland office market, which encompasses Montgomery and Prince George’s Counties, totals approximately 91.7 million square feet of rentable space in 897 office buildings of 25,000 square feet and greater.

Direct vacancy increased to 15.4% in the fourth quarter, up from 13.3% in the third quarter, and total vacancy increased to 16.4% in the fourth quarter, up from 14.4% in the third quarter. The market recorded a decrease in net absorption in the fourth quarter with -248,356 square feet absorbed, down from the 532,554 square feet absorbed in the previous quarter. Contributing to negative absorption was Clark Construction vacating their 89,365-square-foot space at 7500 Old Georgetown Road. The largest lease signed this quarter was MacroGenics, Inc. signing a 122,601-square-foot renewal at 9704 Medical Center Drive. One building delivered in the fourth quarter: The Ella at Carillon (Class A, 125,000 sf, 6% pre-leased to Clearway Pain Solutions) delivered in November 2022. The largest office building sale in Suburban Maryland during the fourth quarter was Shady Grove Medical Pavillion in the North Rockville submarket, trading for $48.0 M. The year-over-year unemployment rate in Suburban Maryland decreased to 3.1% in the fourth quarter of 2022, down from 4.2% in the fourth quarter of 2021. From November 2021 to November 2022 employment in Suburban Maryland saw a net increase of 13,000 jobs. The sector with the greatest amount of job gain was Professional & Business Services with 4,000 jobs gained. Government increased by 1,100 jobs in the period from November 2021 to November 2022.