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.