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D.C. office leasing stays steady but trophy space remains scarce in Q3
Tenants leased about 1.8 million square feet in the quarter, down from 2.0 million square feet in Q2.
Washington, D.C.’s office market was largely steady in the third quarter, but the gap between top-tier properties and the broader market widened, according to data cited by Commercial Observer.
Tenants leased about 1.8 million square feet during the quarter, roughly in line with the market’s five-year quarterly average, but down from 2.0 million square feet leased in Q2.
Overall office availability slipped to 24 percent, while trophy space availability stayed below 10 percent. The average Class A asking rent rose slightly to $62.31 per square foot per year.
Commercial Observer reports that the scarcity of premier space is pushing tenants, including law firms and government departments, to make lease decisions years ahead and encouraging landlords to reposition buildings. The quarter’s largest law firm deal cited is Sheppard’s relocation to 107,227 square feet at 2033 K Street NW, where the property is set for redevelopment, and Greenberg Traurig’s renewal and expansion to 80,089 square feet at 2101 L Street NW.