Share: Share on Facebook Share on Twitter Share on LinkedIn I recommend visiting cushmanwakefield.com to read:%0A%0A {0} %0A%0A {1}

Five Fast Facts Washington D.C.

Lauren Kraemer • 7/13/2023
Get the latest commercial real estate key trends of the Washington D.C. office market.
  1. Vacancy Hits Record High 
    For the first time in Washington D.C.’s history vacancy hit 20%. Class A product increased 10 bps from Q1 2023 to 17.8% while Class B dropped 30 bps to 22.4% and Class C rose 10 bps to 25%. YoY vacancy rose 110 bps with Class A increasing 40 bps, Class B rising 170 bps and Class C jumping 290 bps.  

  2. New vs. Renewal 
    New deals increased 6% from Q1 2023 to 907K SF signed in Q2 while renewal activity jumped 35% from Q1 2023 leasing with 737K SF inked. Class A recorded 735K SF of new leasing and 362K SF of renewal activity in Q2 2023. Tenants continue to flock to quality in the East End and CBD, which made up 89% of Class A new leasing. New leasing got a boost from Crowell & Moring signing 199K SF at 600 5th- this is the first private sector new deal over 100K SF since Q4 2021.  

  3. Crowell & Moring Lease Kicks off Construction in East End 
    The redevelopment of WMATA’s former HQ at 600 5th St has started after the law firm signed a 15-year 199K SF lease for the top five floors. Between 1700 M Street and 600 5th Street, CBD and East End will welcome just over 700K SF of trophy space in 2024 and 2026. These two projects combined are 56% pre-leased. And while downtown DC adds new buildings, NoMa may not see the SEC’s 1.2 MSF after all, as rumors of financing issues circulate.  

  4. Outdated Office Continues to Sell for Resi Flips 
    2100 M St NW sold to apartment developer Post Brothers for $67 million ($221.56 PSF) The 300K SF building is slated to be converted into 300 apartment units in the CBD. The American Health Care Association sold its HQ at 1201 L Street NW for $14 million ($388.89 PSF) which will be razed for 145 affordable units and will be funded by a loan from the Amazon Housing Equity Fund which supports minority led developers.   

  5. Law Firms Continue to Drive Leasing  
    Law firms made up 25% of gross leasing in Q2 2023. New leasing accounted for 71% of all legal leases - this was driven by Crowell & Moring at 600 5th St NW (downsizing by 81K SF with move) and Davis Polk at 1050 17th St NW (increasing by 20K SF with move). Hutton Andrew Kurth inked a 115K SF renewal and will contract by just over 70K SF at 2200 Pennsylvania Ave NW.

DC five fast facts

Insights in your Inbox
Subscribe to the latest local market research, insights & analysis from Cushman & Wakefield across the U.S.
Subscribe

Related Insights

Washington DC Five Fast Facts
Article • Workplace

Five Fast Facts Washington D.C.

Get the latest commercial real estate key trends of the Washington D.C. office market.
Lauren Kraemer • 7/13/2023
Washington DC Skyline
MarketBeat

Washington D.C.

Cushman & Wakefield MarketBeat reports analyze quarterly economic and commercial real estate activity including supply, demand and pricing trends at the market and submarket levels.
Lauren Kraemer • 7/11/2023
ESG
Research • Sustainability / ESG

Why ESG Matters to the Future of Investing

Integrating ESG investment strategies is critical to establishing resiliency and creating long-term value.
Megan Krest • 5/10/2022

Interested in learning more?

Get in touch and we can assist with any additional information you need.

With your permission we and our partners would like to use cookies in order to access and record information and process personal data, such as unique identifiers and standard information sent by a device to ensure our website performs as expected, to develop and improve our products, and for advertising and insight purposes.

Alternatively click on More Options and select your preferences before providing or refusing consent. Some processing of your personal data may not require your consent, but you have a right to object to such processing.

You can change your preferences at any time by returning to this site or clicking on  Cookies

More Options
Agree and Close
These cookies ensure that our website performs as expected,for example website traffic load is balanced across our servers to prevent our website from crashing during particularly high usage.
These cookies allow our website to remember choices you make (such as your user name, language or the region you are in) and provide enhanced features. These cookies do not gather any information about you that could be used for advertising or remember where you have been on the internet.
These cookies allow us to work with our marketing partners to understand which ads or links you have clicked on before arriving on our website or to help us make our advertising more relevant to you.
Agree All
Reject All
SAVE SETTINGS