From spike to slowdown: Tracking tenant concessions in Northern Virginia

In the aftermath of the COVID-19 pandemic, tenant concessions—specifically tenant improvement allowances (TIAs) and free rent—have seen a notable increase across all major markets. This trend can be attributed to landlords' difficulties in securing new lease agreements under those market conditions, coupled with tenants' challenges in encouraging employees to return to the office amid the rise of remote work. 

The rapid escalation of these concessions in prominent markets such as Manhattan and downtown Washington, D.C., has begun to decelerate as market conditions gradually stabilize and initiatives to return to the workplace bolster tenant demand. In Northern Virginia, while the rate of increase over the past three years is starting to slow, it has not yet turned negative, unlike the aforementioned markets.