DC Class A office asking rents rise despite increase in available space

The flight-to-quality trend has been a driving force behind rental rate growth in DC. Competition for premium space has increased asking rents for Trophy offices by 19.5% in the last four years, and, paired with historically-low new deliveries, available space has shrunk by 21.6%, compared to 2021 levels.

Class A has experienced a similar 12.2% increase in rent despite available space climbing 21.5% in the same timeframe as the amenities arms race continues to take hold and landlords outfit Class A space to compete with higher-end Trophy spaces.

Although Class B has experienced a 17.9% increase in available space, rents have held steady since 2021, increasing by just 1.5%. Class B offices are fighting to remain competitive in today’s bifurcated market. However, with mixed success in this asset class and a backlog of available space, price-conscious tenants have an overwhelming number of Class B options to choose from.