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)
155.3 Million SF
Direct Vacancy
13.5%
Total Vacancy
14.7%
YTD Net Absorption
-1.9 M SF
YTD Leasing
6.4 M SF
Under Construction
1.6 M SF
Pre-Leased
60%
YTD Deliveries
453,872 SF
Asking Rental Rate (FS)
$53.21 PSF
YTD Sales
$1.7 Billion
Quarterly Report
DC3Q2021MarketReport.pdf
Mid-Quarter Report
DCMid4Q2021.pdf

The Washington, DC office market currently consists of 807 buildings, over 25,000 square feet, totaling approximately 155.3 million square feet of rentable space. As of August 2021, the unemployment rate for the District of Columbia decreased to 6.5% and the Washington, DC Metropolitan area decreased to 4.9%. The national unemployment rate decreased to 5.2%.

The DC Metropolitan Statistical Area (MSA) added 101,700 jobs from Aug 2020-Aug 2021, representing 3.3% growth YOY. Sectors adding the most were Leisure & Hospitality with 47,600 and Educational & Health Services with 23,500; while the Government lost 9,300. The largest public sector lease executed this quarter was a 15-year, 1.2 million-square-foot pre-lease by the Securities and Exchange Commission (SEC) at 60 New York Avenue, NE (currently a proposed building in NoMa).The law firm Gibson Dunn executed the largest private sector lease with a 163,750-square-foot pre-lease at 1700 M Street, NW (currently proposed in the CBD).

Northern Virginia

Inventory (RSF)
188.2 M SF
Direct Vacancy
15.8%
Total Vacancy
16.9%
YTD Net Absorption
-3.0 M SF
YTD Leasing
5.3 M SF
Under Construction
4.6 M SF
Pre-Leased
84%
YTD Deliveries
158,435 SF
Asking Rental Rate (FS)
$33.56 PSF
YTD Sales
$1.4 B
Quarterly Report
VA3Q2021MarketReport.pdf
Mid-Quarter Report
VAMid4Q2021.pdf

The Northern Virginia office market consists of 1,524 buildings over 25,000 square feet, totaling approximately 188.2 million square feet of rentable space. The largest private sector lease signed during the third quarter was a 210,190-square-foot renewal by Zeta Associates at WillowWood 3 & 4 – 10302-10304 Eaton Place. The largest lease signed by the GSA and the top largest lease of the quarter in Northern Virginia was a 326,057-square-foot renewal by the GSA – Environmental Protection Agency at National Landing Center 1 – 2777 Crystal Drive.

Building sales volume totaled $922,748,495 during the third quarter 2021. The largest transaction was the 13-property purchase by Brookfield Asset Management for $476,150,000 spread across various Northern Virginia Submarkets. The Northern Virginia region gained 53,242 jobs from August 2020 – August 2021, representing 4.5% increase YOY. The Leisure and Hospitality sector has continued to grow with an increase of 19,500 jobs.

Suburban Maryland

Inventory (RSF)
90.2 M SF
Direct Vacancy
13.3%
Total Vacancy
14.4%
YTD Net Absorption
818,586 SF
YTD Leasing
1.9 M SF
Under Construction
1.7 M SF
Pre-Leased
57%
YTD Deliveries
1.1 M SF
Asking Rental Rate (FS)
$28.89 PSF
YTD Sales
$284 M
Quarterly Report
MD3Q2021MarketReport.pdf
Mid-Quarter Report
MDMid4Q2021.pdf

The Suburban Maryland office market, which encompasses Montgomery and Prince George’s Counties, totals approximately 90.2 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 of 2021 with 136,992 square feet absorbed, up from the -48,112 square feet absorbed in the previous quarter. Contributing to the positive net absorption was Kennedy Krieger Institute occupying their 40,000-square-foot space at 4600 Powder Mill Road. Direct vacancy decreased to 13.3% in the third quarter 2021, down from 13.5% in the second quarter 2021, and total vacancy decreased to 14.4%, down from 14.5% in the second quarter 2021. The largest lease signed this quarter was ESAB signing a 20,506-square-foot lease at 909 Rose Avenue in the North Bethesda submarket. The year-over-year unemployment rate in Suburban Maryland decreased to 5.5% in August 2021, down significantly from 8.0% in August 2020.

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