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)
153.2 Million SF
Direct Vacancy
13.2%
Total Vacancy
14.4%
YTD Net Absorption
-1.7 M SF
YTD Leasing
3.1 M SF
Under Construction
1.8 M SF
Pre-Leased
51%
YTD Deliveries
227,031 SF
Asking Rental Rate (FS)
$53.17 PSF
YTD Sales
$1.1 Billion
Quarterly Report
DC2Q2021MarketReport.pdf
Mid-Quarter Report
DCMid3Q2021.pdf

The Washington, DC office market currently consists of 806 buildings, over 25,000 square feet, totaling approximately 153.2 million square feet of rentable space. As of May 2021, the unemployment rate for the District of Columbia and the Washington, DC Metropolitan area decreased to 7.2% and 5.0%, respectively, while the national unemployment rate decreased to 5.8%.

The DC Metropolitan Statistical Area (MSA) gained 207,100 jobs from May 2020-May 2021, representing 6.9% employment growth YOY. The Leisure & Hospitality industry had the largest rebound with 77,300 jobs added, representing 45.3% growth YOY. The largest public sector lease executed this quarter was a long-term renewal by the GSA – Small Business Administration (SBA) for 264,807 square feet at 409 3rd Street, SW. The Boston Consulting Group executed the largest private sector lease with a 97,779-square-foot transaction at 655 15th Street, NW. There were five building sales this quarter, totaling $983,156,163. The largest transaction was a 49% interest transfer sale of 1150 15th Street, NW – Midtown Center for $480.0 million ($1,151 psf).

Northern Virginia

Inventory (RSF)
188.4 M SF
Direct Vacancy
16.1%
Total Vacancy
17.3%
YTD Net Absorption
-2.8 M SF
YTD Leasing
3.5 M SF
Under Construction
4.7 M SF
Pre-Leased
84%
YTD Deliveries
158,435 SF
Asking Rental Rate (FS)
$33.42 PSF
YTD Sales
$477.1 M
Quarterly Report
VA2Q2021MarketReport.pdf
Mid-Quarter Report
VAMid3Q2021.pdf

The Northern Virginia office market consists of 1,528 buildings over 25,000 square feet, totaling approximately 188.4 million square feet of rentable space. The largest private sector lease signed during the second quarter was a 590,726-square-foot extension by Raytheon at 22110, 22260 and 22270 Pacific Boulevard. The largest lease signed by the GSA and the fourth largest of the quarter in Northern Virginia was a 108,296-square-foot new lease signed by the GSA Department of State The Architect Building – 1400 Wilson Boulevard.

Building sales volume totaled $380,678,000 during the second quarter 2021. The largest transaction was the sale of Dulles Executive Plaza I&II – 1350 & 13560 Dulles Technology Drive in the Reston/Herndon submarket. The Northern Virginia region gained 69,196 jobs from May 2020 – May 2021, representing 4.6% increase YOY. Inside the Beltway, there were 53 buildings marketing 50,000 square feet or greater of contiguous space available at the end of the first quarter 2021 and at the end of the second quarter 2021. Outside the Beltway, there were 91 buildings marketing 50,000 square feet or greater of contiguous space available at the end of the second quarter 2021 compared to 84 from the first quarter 2021.

Suburban Maryland

Inventory (RSF)
90.2 M SF
Direct Vacancy
13.5%
Total Vacancy
14.5%
YTD Net Absorption
681,594 SF
YTD Leasing
1.3 M SF
Under Construction
1.5 M SF
Pre-Leased
65%
YTD Deliveries
1.1 M SF
Asking Rental Rate (FS)
$28.25 PSF
YTD Sales
$43.5 M
Quarterly Report
MD2Q2021MarketReport.pdf
Mid-Quarter Report
MDMid3Q2021.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 a decrease in net absorption in the second quarter of 2021 with -48,112 square feet absorbed, down from the 729,706 square feet absorbed in the previous quarter. Although net absorption was negative, a bright spot was the delivery of RegenXBio’s 174,640-square-foot headquarters at 9804 Medical Center Drive in Rockville. Direct vacancy increased to 13.5% in the second quarter 2021, up from 13.4% in the first quarter 2021, and total vacancy remained flat at 14.5% in the second quarter 2021. The largest lease signed this quarter was the U.S. Consumer Product Safety Commission signing a 126,266-square-foot lease at 4330 East-West Highway in the Bethesda / Chevy Chase submarket. The year-over-year unemployment rate in Suburban Maryland decreased to 5.5% in May 2021, down significantly from 8.3% in May 2020. Unemployment in Suburban Maryland remained below the national unemployment rate of 5.8% in May 2021. From May 2020 to May 2021 employment in Suburban Maryland saw a net increase of 19,224 jobs.

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