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)
152.8 Million SF
Direct Vacancy
13.0%
Total Vacancy
14.1%
YTD Net Absorption
-1.2 M SF
YTD Leasing
1.2 M SF
Under Construction
1.9 M SF
Pre-Leased
53%
YTD Deliveries
188,840 SF
Asking Rental Rate (FS)
$53.44 PSF
YTD Sales
$149.6 M
Quarterly Report
DC1Q2021MarketReport.pdf
Mid-Quarter Report
DCMid2Q2021.pdf

The Washington, DC office market currently consists of 803 buildings, over 25,000 square feet, totaling approximately 152.8 million square feet of rentable space. As of February 2021, the unemployment rate for the District of Columbia decreased to 7.6% and the Washington, DC Metropolitan area decreased to 5.7%. The national unemployment rate decreased to 6.2%.

The DC Metropolitan Statistical Area (MSA) lost 227,200 jobs from Feb 2020-Feb 2021, representing a contraction of 6.8% YOY. However, 145,700 new jobs have been added since May 2020, representing 4.9% growth. The largest public sector lease executed this quarter was a long-term renewal by the DC Department of Health for 205,860 square feet at 899 N. Capitol Street, NE. The Biotechnology Innovation Organization (BIO) executed the largest private sector lease with a 60,809-square-foot transaction at 1201 New York Avenue, NW. Only two buildings traded this quarter, totaling $149,550,000. 1350 Eye Street, NW sold at auction, while 1307 New York Avenue, NW was a partial interest transfer.

Northern Virginia

Inventory (RSF)
188.6 M SF
Direct Vacancy
15.7%
Total Vacancy
16.7%
YTD Net Absorption
-2.3 M SF
YTD Leasing
1.3 M SF
Under Construction
4.5 M SF
Pre-Leased
92%
YTD Deliveries
158,453 SF
Asking Rental Rate (FS)
$33.25 PSF
YTD Sales
$96.4 M
Quarterly Report
VA1Q2021MarketReport.pdf
Mid-Quarter Report
VAMid2Q2021.pdf

The Northern Virginia office market consists of 1,529 buildings, over 25,000 square feet, totaling approximately 188.6 million square feet of rentable space. The largest private sector lease signed during the first quarter was a 180,000-square-foot relet by Microsoft at Commonwealth Tower – 1300 Wilson Boulevard. The largest lease signed by the GSA, and the second largest of the quarter in Northern Virginia, was a 70,297-square-foot relet by the GSA-Department of Defense at Heritage Center 4 – 7619 Little River Turnpike. Building sales volume totaled $96,466,960 during the first quarter 2021. The largest transaction was the sale of Mark Center 2001 – 2001 N. Beauregard Street in the I-395 Corridor submarket.

Suburban Maryland

Inventory (RSF)
89.9 M SF
Direct Vacancy
13.4%
Total Vacancy
14.5%
YTD Net Absorption
729,706 SF
YTD Leasing
615,820 SF
Under Construction
1.6 M SF
Pre-Leased
69%
YTD Deliveries
937,410 SF
Asking Rental Rate (FS)
$28.09 PSF
YTD Sales
$28.1 M
Quarterly Report
MD1Q2021MarketReport.pdf
Mid-Quarter Report
MDMid2Q2021.pdf

The Suburban Maryland office market, which encompasses Montgomery and Prince George’s Counties, totals approximately 89.9 million square feet of rentable space in 894 office buildings of 25,000 square feet and greater. The market recorded an increase in net absorption in the first quarter of 2021 with 729,706 square feet absorbed, up from the -238,763 square feet absorbed in the previous quarter. Contributing to the positive net absorption was the delivery of the U.S Citizenship and Immigration Services’ 574,767-square-foot headquarters at 1 Capital Gateway Drive in Camp Springs. Direct vacancy decreased to 13.4% in the first quarter 2021, down from 14.2% in the fourth quarter 2020, and total vacancy decreased to 14.5%, down from 15.3% in the fourth quarter 2020. There were two significant office building sales in Suburban Maryland during the first quarter 2021. 4321 Collington Road in the Bowie submarket and 9200 Edmonston Road in the Greenbelt/College Park submarket both sold in February 2021. The largest lease signed this quarter was TCR2 Therapeutics signing an 84,264-square-foot lease at 9950 Medical Center Drive in the North Rockville submarket.

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