In the fourth quarter of 2023, Cushman & Wakefield’s office statistics for Washington, D.C. revealed that Class A buildings dominated leasing activity with a staggering 73% share of new deals, totaling to 2.2 million square feet. The remaining 27% was split between Class B and C buildings.
During this period, there was a decrease in new leasing activity compared to the previous quarter – from 664,000 square feet to almost half at around 490,000 square feet. Overall for the year though, total new leasing activity amounted to approximately 3.1 million square feet – down by about14% from last year’s record of over three and a half million.
Renewal activities were also recorded at just under an impressive figure of nearly four million in terms of occupied space throughout all twelve months.
Accordingly Lauren Kraemer (Associate Director) commented on these results: “Tenants are still looking towards high-quality spaces within core submarkets when searching for their ideal office location.” She added that despite relatively flat numbers compared with last year’s figures; it is worth noting how strong Class A building have been performing while only accounting for less than one-third combined alongside both Classes B & C categories.”
The article titled “Class A Buildings Representing Majority Share Of New DC Office Leasing In ’23” can be found on Connect CRE website.
