Washington, D.C. Office Market Report

Vacant stock trends downward. Washington, D.C. is expected to be the only metro of the country’s 15 largest office markets to post a vacancy dip in 2024. Over 4.5 million square feet of space is slated to be newly occupied by the end of this year, doubling the volume scheduled for delivery. Driving much of this demand, government entities and non-profit organizations are taking opportunities to lease top-tier options at discounted rates. The metro’s average Class A asking rent in March was 0.5 percent lower than at year-end 2021, with long-standing office hubs like the Dulles Corridor and the Capitol Hill Area posting even larger drops. These locations have two of the largest local pipelines in the metro, suggesting that the opportunistic leasing dynamic should remain here long-term.