District of Columbia Office Market
The District of Columbia experienced 107,571 SF of negative net absorption during Q3 2024. The vacancy rate declined 10 basis points quarter-over-quarter at 20.2%, although increased 100 basis points year-over-year. The District of Columbia’s development pipeline remains historically low, with no deliveries during the quarter. The sole property under construction in the district is 600 Fifth, a 400,000-square-foot office building in the East End. Overall, asking rents have decreased slightly during 2024. Class A rents were the cause of this, as they have declined 2.4% year-to-date, while Class B rents have increased 1.6%. The longer-term trend, however, shows that both Class A and Class B rents have remained relatively flat since 2019. The rent spread between direct and sublet deals has settled around $10, after having spiked in 2020 and 2021 when it hovered around $12 to $14.
Download District of Columbia Office Market Report 3Q24