Key Takeaways:

• Post pandemic, the DC metro region regained all the job losses and now boasts 3.4 million jobs, more than at any other point in history.
• Flight to quality continues to drive market fundamentals in Washington, DC as tenants flock to quality, well-amenitized, trophy space. While Class B and C vacancies hover north of 20%, trophy assets delivered in 2010 or later are currently in the single digits.
• Satellite campuses for universities and colleges are booming and expanding in the nation’s capital. These higher ed tenants are not only providing a hub for their students but establishing bases for government relations and grant writing.
• The increased conversion of office space to residential or other uses and the removal of obsolete office product has the potential to speed up recovery in the office sector. Downtown DC has 4 MSF of office space across 20 buildings that are currently undergoing or slated to undergo conversion to residential. There are another 16 office buildings, totaling 3.4 MSF, rumored for residential conversion.