Washington, D.C.’s office market saw a 6% increase in new leasing activity during Q2 2023, with 907,000 square feet signed. However, the city’s overall office market experienced a historic milestone as vacancy rates reached an all-time high of 20%. According to Cushman & Wakefield’s Q2 office report, Class A properties accounted for 735,000 square feet of new leasing and 362,000 square feet of renewal activity primarily concentrated in the East End and Central Business District. As a result of this activity Class A vacancies rose to 17.8%, while Class B dropped to 22.4% and Class C increased to 25%, resulting in negative absorption at -154k sqft leading some developers and property owners repurposing obsolete offices into residential units instead .
Law firms continued their significant contribution by accounting for 25% gross leasing during Q2 2023 with notable deals such as Crowell & Moring’s 199k sqft lease at 600 Fifth providing further impetus . Despite current challenges facing Washington D.C.’s Office Market , it is clear that law firms remain key players within the sector moving forward .
