The Washington, DC office market currently consists of 818 buildings, over 25,000 square feet, totaling approximately 159.0 million square feet of rentable space. As of August 2022, the unemployment rate for the District of Columbia decreased to 5.3%, while unemployment for the Washington, DC Metropolitan area increased to 3.5%.
The DC Metropolitan Statistical Area (MSA) added 73,800 jobs from Aug 2021-Aug 2022, representing 2.3% growth YOY. Sectors adding the most jobs were Leisure & Hospitality with 29,300, followed by Educational & Health Services with 14,400, while the Government added 5,500. The largest public sector lease executed this quarter was a renewal signed by the GSA – U.S. Customs and Border Protection for 99,515 square feet at 90 K Street, NE, in the NoMa submarket. FINRA executed the largest private sector lease with a 67,754-square-foot lease at 1700 K Street, NW in the CBD submarket. 2100 Pennsylvania Avenue, NW (469,000 sf, 66% leased) delivered. Two buildings, totaling $595,800,000, sold in the third quarter. The largest sale of the quarter was 601 Massachusetts Avenue, NW trading to Mori Trust Company from Boston Properties for $531,000,000 ($1,109 psf).