The variation in term length across the DC Metro market

Tenants in the DC Metro market have been trending towards shorter lease terms since 2020. When dividing property classes from Trophy and Class A (Tier 1) and Class B and Class C (Tier 2), Tier 1 in Northern Virginia and Tier 2 in Washington DC are the only submarkets that don't seem to be following this shrinking in lease terms. 

The Tier 2 Washington, DC market sees this increase in lease terms due to a few outliers with exceedingly long terms such as Finnegan’s or the Washington Post’s lease. The increase in Northern Virginia’s term length, particularly in Tier 1, is likely due to larger companies coming across the river from DC, such as the National Electrical Manufacturers Association.

The trend throughout the remaining DC Metro submarkets is lessening lease terms, most likely to position themselves better in the short term and remain flexible for stronger economic climates.