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)
152.2 Million SF
Direct Vacancy
12.4%
Total Vacancy
13.6%
YTD Net Absorption
-1.3 M SF
YTD Leasing
6.2 M SF
Under Construction
2.1 M SF
Pre-Leased
58%
YTD Deliveries
1.2 M SF
Asking Rental Rate (FS)
$53.24 PSF
YTD Sales
$1.7 B
Quarterly Report
DC4Q2020MarketReport.pdf
Mid-Quarter Report
DC-Mid-1Q-2021.pdf

The Washington, DC office market currently consists of 798 buildings, over 25,000 square feet, totaling approximately 152.2 million square feet of rentable space. Since spiking at 9.8% in April due to COVID-19, regional unemployment has been on a steady decline. As of November 2020, the unemployment rate for the District of Columbia improved to 7.5% and the Washington, DC Metropolitan area improved to 5.8%. The DC Metropolitan Statistical Area (MSA) lost 179,700 jobs from Nov 2019-Nov 2020, representing a contraction of 5.3% YOY. Even though employment is down YOY, employment has been rebounding steadily with the metro area adding 180,700 net new jobs May-November. The largest public sector lease executed this quarter was a short-term extension by the GSA – Small Business Administration for 266,193 square feet at 409 3rd Street, SW – Washington Office Center. Skadden signed the largest private sector lease with a 263,693-square-foot “blend & extend” at 1440 New York Avenue/700 14th Street, NW. Eight buildings sold, totaling $559,381,073. No buildings broke ground, nor delivered, in the fourth quarter.

Northern Virginia

Inventory (RSF)
188.0 M SF
Direct Vacancy
14.7%
Total Vacancy
15.6%
YTD Net Absorption
-1.8 M SF
YTD Leasing
5.5 M SF
Under Construction
4.7 M SF
Pre-Leased
89%
YTD Deliveries
1.9 M SF
Asking Rental Rate (FS)
$33.09 PSF
YTD Sales
$1.7 B
Quarterly Report
VA4Q2020MarketReport.pdf
Mid-Quarter Report
VA-Mid-1Q-2021.pdf

The Northern Virginia office market consists of 1,527 buildings, over 25,000 square feet, totaling approximately 188.0 million square feet of rentable space. The largest private sector lease signed during the fourth quarter was a 196,000-square-foot new lease by Volkswagen at Reston Gateway B – 12034 Sunset Hills Road. The largest lease signed by the GSA, and the third largest of the quarter in Northern Virginia, was a 70,000-square-foot relet by the GSA -Department of Defense at One Jefferson Park – 8111 Gatehouse Road. Building sales totaled $381,000,000 during the fourth quarter, with the largest transaction being the sale of Fairview Park – 3150 Fairview Park Drive in the Merrifield submarket. Northern Virginia lost 67,400 jobs from October 2019 – October 2020, representing 4.3% decline YOY. As of October 2020, the unemployment rate for Northern Virginia increased from the previous year to 4.7%. Inside the Beltway, there were 51 buildings marketing 50,000 square feet or greater of contiguous space available, while Outside the Beltway, there were 79 buildings marketing 50,000 square feet or greater of contiguous space available.

Suburban Maryland

Inventory (RSF)
89.1 M SF
Direct Vacancy
14.2%
Total Vacancy
15.3%
YTD Net Absorption
-603,530 SF
YTD Leasing
2.3 M SF
Under Construction
1.8 M SF
Pre-Leased
75%
YTD Deliveries
530,540 SF
Asking Rental Rate (FS)
$27.93 PSF
YTD Sales
$693.6 M
Quarterly Report
MD4Q2020MarketReport.pdf
Mid-Quarter Report
MD-Mid-1Q-2021.pdf

The Suburban Maryland office market, which encompasses Montgomery and Prince George’s Counties, totals approximately 89.1 million square feet of rentable space in 894 office buildings of 25,000 square feet and greater. The market recorded a slight improvement in net absorption in the fourth quarter with -238,763 square feet absorbed, while direct vacancy increased to 14.2% and total vacancy increased to 15.3%. Four buildings sold this quarter, the largest being 4321 Hartwick Road trading for $30,000,000 ($597 psf) in the Greenbelt/ College Park. The largest lease executed this quarter was Novavax signing a 123,000-square-foot lease at 700 Quince Orchard Road in the Gaithersburg / Germantown submarket. Three buildings delivered, totaling 318,540, while one new building broke ground. As of November 2020, the unemployment rate in Suburban Maryland increased to 6.3% YOY, up significantly from 2.6% in November 2019. However, from Nov 2019–Nov 2020 employment in Suburban Maryland saw a net decrease of 45,143 jobs.

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