DC Office Vacancy Rates Reach Record Low in Q2

DC Office Vacancy Rates Reach Record Low in Q2

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 .

About the Publisher:
Steve Griffin is based in sunny Palm Harbor, Florida. He’s an accountant by profession and the owner of GRIFFIN Tax and REVVED Up Accounting. In addition, Steve founded Madison Avenue Technology. With a strong passion for commercial real estate, he’s also dedicated to keeping you up to date with the latest industry news.

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