District of Columbia Office Market
The District of Columbia experienced 81,000 SF of negative net absorption during Q1 2024. This led to the vacancy rate increasing slightly, ending Q1 2024 at 20.3%, up 10 basis points quarter-over-quarter and 140 basis points year-over-year. The District of Columbia’s development pipeline remains historically low, with no deliveries during Q1 2024 and only two properties under construction totaling 736,000 SF. 17XM is a 336,000-square-foot office building under construction in the CBD and 600 Fifth is a 400,000-square-foot office building under construction in the East End. Overall, asking rents dipped slightly to begin 2024. Class A rents were the cause of this, as they decreased 3.4% quarter-over-quarter, while Class B rents increased 0.4% quarter-over-quarter. The longer-term trend, however, shows that both Class A and Class B rents have remained relatively flat since 2019.
Download District of Columbia Office Market Report 1Q24