The ‘Return to Office’ has seen many tenants rethink how they utilize their office space, with many opting to go to smaller spaces in higher quality buildings. Vacancy for Trophy buildings in Urban settings has been steadily decreasing as a result, currently sitting at 12.02%. In the Urban-Suburban segment of Northern Virginia’s Office Market, the average vacancy has reached an all-time high of 23.1%. The areas that are contributing the most to this trend are the submarkets of Huntington and the I-395 Corridor, who both boast a percent vacancy of 40% or more. Rural office buildings in Northern Virginia have seen a steady decrease in their vacancy % the past few quarters. An array of factors have influence in this decrease, mainly including cheaper rents in comparison to more urban settings, and availability of large office spaces for larger tenants to occupy.
September 25, 2023