Northern Virginia office market reports

Q2 2022

Government contracting has been the backbone of the office market in Q2 2022 and continues to bolster overall market performance in Northern Virginia for the long term. Within weeks of one another, Boeing and Raytheon, two of the largest GovCon companies in the sector, announced they will move their global headquarters to NoVA; tapping into the region’s top talent while preparing for the tech-enabled “new economy.” Tenants are moving away from commodity buildings, and executing shorter lease terms, in amenity-rich assets that give access to shared common areas, retail offerings, and state-of-the-art fitness centers to attract their employees back to the office.

176 MSF

Inventory

Inventory has remained flat since last quarter, but there are high expectations for numerous buildings to break ground or deliver in Q2 2022.

 

-1.07 MSF

Net absorption

The negative absorption is largely due to companies shrinking their office footprints and moving into spaces that offer better amenities for their employees.

 

$33.70

Direct asking rent

Full-service direct asking rents are mostly flat across asset classes although net effective rents are declining due to continued record-high concessions.

39 MSF

Availabilities

Large block availabilities have reduced by a hairline compared to previous quarters. Direct availabilities are just over 33 MSF while the sublease market has remained generally unchanged.

 

17.4%

Vacancy

Vacancy rates continue to steadily increase quarter-over-quarter as demand for smaller, more expensive, office space is what companies are seeking as they evaluate their upcoming lease expirations.

 

$474 MM

Investment sales

Northern Virginia saw a steady decrease in investment sales, now dipping to roughly 50% since Q4 2021, while the price per square foot increased by 12% from last year.

 

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Get in-depth office market reports and insights from commercial real estate experts in the Washington, DC Metro area. Avison Young advisors look at Northern Virginia commercial real estate activities and the latest Northern Virginia statistics to provide you expert market research on Northern Virginia's office properties.

Explore different topics like the latest office market pricing trends and analysis of Northern Virginia's current office real estate market conditions. Gain a better understanding of Northern Virginia’s office real estate outlook and stay ahead of current office space trends. Make smart decisions when it comes to investing in office properties in Northern Virginia's competitive office real estate market. Avison Young is your trusted source for commercial real estate office market insights in Northern Virginia.

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