Northern Virginia office market reports

Q3 2022

Northern Virginia is continuing to see an uptick in return-to-office as Labor Day has come and gone, with the continuing trend of increasing vacancy and availability as companies continue to exercise termination options in their leases in order to expedite shrinking office footprint, with 80% of leasing activity this quarter being spaces under 10,000 square feet. Northern Virginia is also beginning to experience an increase in office-to-residential proposals as multifamily is viewed as a more attractive investment with Amazon beginning to grow their presence in the region. Investments in office are going down and these conversions continue to be top of mind as owners evaluate strategic options. However, it is possible that the market is seeing an overcorrection of these conversions if the demand for new product office space continues to climb
176 msf

Inventory

Inventory has remained constant since last quarter, but there is an expectation for The Commonwealth Centers’ office space in Ashburn to deliver before the end of this year and account for 42k sf of new office space with an additional 3.6 million square feet of office space in the development pipeline that will deliver over the course of the next 5 years.
-888 ksf

Net absorption

Net absorption has continued to run negative as companies looking to shrink their office footprint continues to be the trend, largely because of the current demand for flight to quality.
$33.90
psf

Direct asking rent

Rents are remaining flat as we are seeing increases in concessions for leasing deals.
41.1 msf

Availabilities

Large block availabilities are increasing as companies are reducing the space they lease, with an uptick in both direct and sublet availability.
19.1%

Vacancy

Vacancy has increased more so in office space as lease expirations come up and companies are kicking the can down the road to decide what they would like to do as it relates to an office space in this unpredictable economic climate.
$717 mm

Investment sales

Investment sales have trended upward for the highest volume this quarter. This upward trend is being caused by sales of distressed properties that are being converted away from office into residential properties, as well as rising interest rates to put downward pressure on inflation.
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Your source for the latest Northern Virginia office market reports

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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