Washington D.C. Law Firms Lead Office Market in Q1

The Washington D.C. office market experienced strong leasing activity from law firms in Q1, comprising 40% of total leasing according to Cushman & Wakefield data. This included 227,000 square feet of new leases and 224,000 square feet of renewals. Class A space saw positive absorption with 124,000 square feet; the East End led with 194,000 square feet and notable moves coming from Boston Consulting Group (BCG), Industrious Apple National Women’s Law Center (NWLC) and Conference of State Bank Supervisors (CSBS).
Rents decreased by 1.5% year-over-year while concession packages remained elevated at $175 in tenant improvements plus 20+ free months for large leases over 20K sqft – 17% overall leasing reported at 640K sqft compared to 19k sqft in Q1 2022 but up from 420k qtr prior per report findings .
Law firms drove the Washington D.C office market during Q1 as evidenced by robust lease activity across all sectors including BCG , Industrious , Apple NWLC & CSBS . Rental rates declined slightly YOY however generous concessions were offered on larger deals making it an attractive time for tenants looking to secure quality space .