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Market Report

Washington, D.C. Office Market Report

4Q 2023

Metro’s Nationally-High Net Absorption Has Mostly
Been Fueled by Built-to-Suit Commitments 

Amazon expands HQ2 in Arlington. In the second quarter of 2023, net absorption in the metro measured at 1.6 million square feet, setting the second-highest figure among any major market in the span. The metric was, however, propped up by Amazon’s 2.1 million- square-foot move-in to Phase 1 of its HQ2 in Arlington. Built-to-suit projects like this are prevalent, and are concentrated in northern Virginia. As of September, about 99 percent of builds in the area with completion dates in 2023 were pre-leased, aided by sustained demand for new, high-end spaces. This marked a distinction compared to tenant needs for older options, as nearly one-fourth of all local Class A space sat vacant in June. Overall momentum nevertheless appears to be building, as in September, at least 13 new move-ins to top-tier offices were planned here, totaling 951,000 square feet. 

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